SWOT Analysis Of Coca Cola

Introduction

Business is the transactional medium through which products and/or services move or are exchanged for money between producers and consumers (BusinessDictionary, 2016). Marketing on the other hand denotes what must happen in order to facilitate this movement (Merriam-webster, 2016).

In defining these two concepts, we are provided with an insight into the critical role that marketing plays in the viability of any business. Without marketing functions, producers cannot effectively deliver the right goods or services (Products) that meet potential consumer’s demands, at a price that matches their perceived value, producers cannot effectively determine the most viable avenues for consumers to access producers’ goods (Place) and they

Industry analysis – SWOT and Porter’s five forces analysis

The Industry analysis of Coca Cola using SWOT analysis (DeFranco, 2015) reveals that;

Its Strengths- it is a brand with international repute, a leading beverage company with products being offered in more than 200 countries, it is popular, it sells and manufactures a variety of products to meet a variety of consumer needs, it has a robust marketing and advertising strategy, and it has strong customer loyalty.

Its Weaknesses- it does not produce any health beverages, it has strong competition from Pepsi Cola which outcompetes it in some countries, it has faced negative publicity e.g. over its health benefit to consumers

Its Opportunities- increased sales in developing countries, diversifying products into safe drinking water (bottled water), improved supply chain management and venturing into health drinks.

Its Threats- increasing competition, increasing health awareness of consumers, water scarcity that will hamper production

In applying Porter’s five forces analysis (see figure i) to Coca Cola, the following is observed (Porter,

Riham Cola example, Coca Cola has intensified its product, pricing, placement and promotion strategies mainly targeting the urban customers through making easily portable products (e.g. coke mini), personalizing the products to customers by having their names inscribed on the bottle labels, providing “healthier” alternatives of their products e.g. coke zero and having numerous vending points for their products (hawkers, kiosks, shops, supermarkets…). Riham on the other hand has concentrated on the rural customer through provision of soda that is more in quantity but less in price as compared to similar sized Coca Cola