The Coca-Cola Company was selected for the following S.W.O.T. analysis. The company has the reach 126-years history; it was founded in 1886 in the United States. As the company’s official web site says, that the company’s produces 19,400 beverages every second. This year Coca-Cola takes the 59th place in the Fortune 500 Annual Ranking, and its revenue totals 46,542.0 millions dollars. The company produces about 230 brands in nearly 200 countries.
Coca-Cola has more than 100-years history that brings the world popularity and incredible company’s experience at the beverage market. The company cooperates with the most well-know food providers in the world, such as McDonald’s. It has a wide diversity of products, which suit any taste, focusing on different audience. The other important strength is connected with its main product – the company keeps the formula of the Coca-Cola in strict secret. This allows promoting a taste of the Coca-Cola as unique. The product of the long-time competitor, Pepsi-Cola, is much the same, although the situation is far more advantageous than in cases when a new company begins to produce same products in the moment of entering the market. Today, Coca-Cola has one of the strongest positions at the market and good association with the brand due to efficient advertising companies.
The Coca-Cola products have been always associated with the ones that are not good for health. This fact affects the volume of the target audience and has negative consequences, especially considering the current increasing interest to the healthy lifestyle. For example, researches show that many parents, especially in the European countries, do not support a practice when Coca-Cola beverages are options in McDonald’s “Happy Meal” sets. They afraid the beverages could affect children’s health.
The beverage market shows consistent growing. This is the reason for great possibilities for the Coca-Cola products. Worldwide notability of the brand also can be a great support if the company decides to investigate other markets, for example, for promoting in the food and snacks sector. A growing volume of the middle class in developing countries is also a good chance for Coca-Cola development as the target audience of the product includes representatives of the middle-class.
Although economic indicators convince that Coca-Cola won the long-term battle with Pepsi-Cola, it could be a huge mistake to undervalue PepsiCo’s creativity and innovative approach. It is a strong and long-time competitor that can change this situation soon. Moreover, the beverage market is highly competitive environment. New brands appear all the time, and resistant companies surprise consumers with interesting new ideas of products, which wins great popularity due to the absence of analogues. Another important challenge for Coca-Cola, as well as for any business today, is the economic crisis environment. The company needs to be flexible and to be ready for huge shocks and changes.
To conclude, the Coca-Cola Company has a long-term tradition and a strong position at the beverage market today. However, these strengths do not bring guarantees in the long-term perspective. The leading position requires a range of important actions that should be planned in advance and carefully. Coca-Cola needs to focus on the development of “more healthy” association with the brand, or on confirming the fact that its product will not damage people’s health and can be used by children. The company should pay a special attention to the Asian and African markets where increasing volume of the middle-class gives new possibilities. Entering other markets, especially food market could be effective due to company’s good reputation and worldwide fame. However, highly competitive environment requires an innovative approach and flexibility. A pressure of such a creative competitor as Pepsi-Cola provokes the Coca-Cola company to implement completely new approaches and ideas.