In Georgian, the Coca-Cola Company was founded in 1892 before being incorporated in the year 1919. It is the largest beverage firm in the whole world and markets and owns over 500 beverage brands which are nonalcoholic, sparkling beverages along with other types of beverages like sports and energy drinks, enhanced waters, juices, and waters. Additionally, the business markets and owns four of the top global brands of beverage including Sprite, Fanta, Diet Coke, and Coca-Cola. In the trademarks of the firm, finished products sold in the US since 1886 are being sold now over two-hundred nations (Lussier, 2008).

SWOT Analysis of Coca-Cola
Strengths of Coca-Cola

Brand Awareness: The Company of Coca-Cola is actually one of the most widely renowned brands across the world. Its logo is composed of classic white and red along with the renowned jingle resonate with consumers of almost all ages. In this sector of the business, there are two main players; one is PepsiCo, Inc. and the other one is Coca-Cola. With that being said, the position of Coca-Cola is maintained by it into the top post.

Robust Distribution Network: The products of Coca-Cola are made available by the firm in over two-hundred nations through the biggest distribution network of the world. Its capability of utilizing the firm-owned distributors along with independent retailers, wholesalers, and bottlers has no opponent or parallel.

Weaknesses of Coca-Cola

Water Management: To the prosperity of the community, this resource is very important. With the rising demand of water around the globe, water is becoming scarce, the overall quality of sources of water might very well become poor, leaving the system of Coca-Cola to incur even higher costs or face the constraints of capacity that might impact its profitability or overall operating revenues. 

Foreign Currency Fluctuation: Revenues are earned by the firm, liabilities are incurred, assets are owned, and expenses are paid in the nations through currencies other than the dollar of US including Mexican peso, Brazilian real, and Japanese euro. That is why, decrements or increments in the dollar’s value against other important or major currencies impact its overall operating income, revenues, and the balance sheet items’ value dominated in the foreign nations. Additionally, dramatic or unexpected devaluations of the currencies in emerging or developing market could affect the value of earnings of providers negatively, and the value of assets located in those specific markets (Pommer, 2014).

Opportunities of Coca-Cola

Diversification: It can be said that the organization has been working hard at utilizing its abundant war chest building a presence in the quickly growing categories of beverage. It owns sixteen per cent of the Keurig Green Mountain currently while developing a fresh device of Keurig Kold that is set to be introduced this fall. In addition, Keurig is quite famous for its hot drinks and intends to feature products which are Coke-branded for its new platform. In Monster Beverage, Coca-Cola has recently finalized its 17 per cent stake (Pommer, 2014).

Extended Reach: At a steady clip, the population is increasing. For capitalization on this specific fact and the shift of customers towards living healthier, the firm has concentrated on bolstering several of its lines. Regions like China and India have ramped up the demand for the coffee offerings and latest juice of the company (Pommer, 2014).

Threats of Coca-Cola

Nutritious Selections: A shift in terms of culture towards organic and natural product has actually led many to prefer healthy beverage, smoothies, and nutritional water options. Furthermore, many professionals of health have called for the rejection of beverages and foods containing lofty capacities and amounts of sugar as this type of products pose an elevated risk of being obese, suffering from a disease of the heart, and developing diabetes. In addition, a negative per cent of beverage has emerged because of the desire of federal regulators to place excessive amounts of taxes on sugary soft and soda drinks (Nganga, 2014).

Indirect Competition: Even though firms like SBUX or Starbucks and DNKN or Dunkin Donuts don't compete with the beverage company but they play a role in placing a dent in the market share of the organization. Healthier alternatives are offered by the chain, customer loyalty, and unique choices that are not matched easily by the Coca-Cola (Nganga, 2014).

Coca-Cola Company Performance

Being the largest organization in the industry of soft drink, the largest share of the market is enjoyed by Coca-Cola. Approximately fifty-nine per cent of the global market is controlled by it.

Product Growth of Coca-Cola

A decrement of 2 per cent was reported by Coca-Cola in 2013 to almost 46.9 billion dollars. Trends of global volume were actually positive in both 2014 and 2013 with an expansion of 2 per cent each year. The sales of the firm decreased in 2014 but to only 2 per cent. In 2015, reported sales dropped even more to 4 per cent but an increment occurred on organic terms by almost 4 per cent. Global volumes of full-year were up to two per cent led by North America, the flagship market of the group. Sales dipped almost 5 per cent in 2016 to 41.9 billion dollars due to the unfavourable effects form structural changes and foreign currency of 9 and 12 per cent. The year of 2017 observed sales by 15 per cent to almost 35.4 billion dollars driven by the structural headwinds of 17 per cent following the US and China refranchising programs. In spite of this, the organic revenues were up to three per cent although volumes were even throughout the year, with margins which were improved (Huddleston, 2018).

Boston Consulting Group Metrics

Star Strategy: Profits are invested by Coca-Cola for earning more and future growth of market profits and share.

Cash Cow Strategy: Profits are used by the company for financing growth and new products somewhere else.

Question Mark Strategy: The firm either invests heavily for pushing products to a premium status or divesting for avoiding it being a Dog.

Dog Strategy: The organization either invests in earning the share or market or disinvesting. Therefore, the matric of BCG is the best way for a portfolio analysis by a business. The strategies which are recommended after the analysis of BCH assist the company in deciding on the right light of actions and assisting them in implementing the same (Nganga, 2014).

KPI of Coca-Cola

Coca-Cola measures its volume in million cases product sold where 5.678 litres are represented by one unit. Market share of Coca-Cola is calculated by dividing revenue or the volume by total amount to revenue or volume of the respective product category. The number of countries is reported by Coca-Cola where company improve or maintain sparking share of beverages volume. Net sales revenue of the company consists of revenues from primary activities of Coca-Cola HBC (Coca-cola HBC, 2014).

Coca-Cola Product Lifecycle

The formula of Coca-Cola has always been kept secret by the company and has been the same through the years. Coca-Cola has been constantly developing in other respects. The company considered it important for the brand to maintain its number one position. At some stage, going decline is quite natural for products after getting introduced in the market that is called lifecycle of the product. Coca-Cola is around the world for more than 100 years and the brand image is constantly being developed while reinforcing the core benefits of product taste to make sure that the product keeps growing rather than declining. One of the ways by which Coca-Cola maintain product growth is making its products easily accessible to everyone and making it sure that changing customer needs must be met. Years after the 330mlcan kept the growth and development of the Coca-Cola brand (Anders, 2013).

Conclusion on of Coca-Cola

In a nutshell, Coca-Cola owns four of the top global brands of beverage including Sprite, Fanta, Diet Coke, and Coca-Cola. Strengths of Coca-Cola are Brand Awareness and Robust Distribution Network; the products of Coca-Cola are made available by the firm in over two-hundred nations through the biggest distribution network of the world. The Weaknesses of Coca-Cola are Water Management and Foreign Currency Fluctuation, while Opportunities for Coca-Cola are Diversification and Extended Reach, and Threats that Coca-Cola faces are Nutritious Selections and Indirect Competition. The year of 2017 observed sales by 15 per cent to almost 35.4 billion dollars driven by the structural headwinds of 17 per cent following the US and China refranchising programs. Coca-Cola measures its volume in million cases product sold where 5.678 litres are represented by one unit. Coca-Cola is around the world for more than 100 years and the brand image is constantly being developed while reinforcing the core benefits of product taste to make sure that the product keeps growing rather than declining.

References of Coca-Cola

Anders, J. (2013). Coca-Cola’s Marketing Strategy: An Analysis of Price, Product and Communication. GRIN Verlag.

Coca-cola HBC. (2014). Our strategy and KPIs. Retrieved from http://publisher.wizness.com/reports/2014-integrated-annual-report/strategic-report/strategy/our-strategy-and-kpis

Huddleston, N. (2018, May 15). The Coca-Cola Co Performance Trends 2013-2017 - results in data. Retrieved from https://www.just-drinks.com/analysis/the-coca-cola-co-performance-trends-2013-2017-results-data_id125860.aspx

Lussier, R. (2008). Management Fundamentals: Concepts, Applications, Skill Development. Cengage Learning.

Nganga, C. (2014). Coca-Cola Company. History, Swot Analysis, Marketing Strategies. GRIN Publishing.

Pommer, B. (2014). Market definition and analysis of Pepsi-Cola. GRIN Verlag.