Swot Analysis Of Coca Cola

Satisfactory Essays
1.0. Introduction
In this report, our group selected Coca-Cola which has introduced a new product in the past twelve months. We conduct research on the Coca-Cola company profile and also include an analysis of the products before the launch of the new beverage product. This report also introduces the new product and identifies the circumstances leading to launch of the new product.
Our group has applied the knowledge that we learnt from Analysis of Competitive Advantages. This included ROI, balance scorecard, porter 5 forces model and generic strategies. Our group choose three analytical tools which included SWOT analysis, Return on Investment and Balanced Scorecard to analyse the performance of the company. The analysis is based in the company financial report through company’s official website.

SWOT analysis
SWOT analysis comprehends both the internal and external environment of the firm. Internally, the framework identifies firm’s strengths and weaknesses (Ferrell, Hartline 2012, p.85).Externally, the external environment organizes information on the market to identify risks and opportunities in the business(Ferrell, Hartline 2012, p.85).
Coca-Cola is a well-known brand in the world which is one of the strengths. Coca-Cola is the most valued brand in the world for 13 years since year 2000( Bookwalter J.R 2013). The Coca-Cola Company is the world's largest beverage company with a market capitalization of $176.20 billion(The Coca-Cola Company: An Attractive Stock In The Beverage Industry 2014). As Coca-Cola is the most recognizable brand, it has its own customer loyalty. Customer loyalty and the popularity become Coca-Cola strength. Coca-Cola has the world’s largest market share in the beverage industry which is also o...

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...argaining power on the price of the soft drink. If Coca-Cola was to increase the prices, customers are highly sensitive to the price of soft drinks and can easily switch to another beverage brand due to many other choices that they are able to choose from.
The intensity of Rivalry
The intensity of rivalry is intense. Coca-Coca main competitor is Pepsi which also has a wide range of beverage products. There is a fierce competition between Coca-Coca and Pepsi. Coca-Cola and Pepsi held majority of the market share where the other beverage has low market share. Coca-Cola and Pepsi compete in advertisement and also improving product differentiation rather than pricing. Due to growing health awareness among people, Nestle also can be a competitor to Coca-Cola. As Nestle has come out with ice tea and the flavoured milk products which are also substitutes to the Coca-Cola.
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