Swot Analysis for Coke

Strengths Weaknesses/Limitations, Opportunities, andThreats involved in the business Coca Cola SWOT ANALYSIS The Coca-Cola Company (Coca-Cola) is a trailmanufacturer, distributor and marketplaceer ofNon-alcoholic deglutition concent rank and syrups, in the world. Coca-Cola has a strong greasename and scrapeportfolio. Business-Week and Interbrand, a branding consultancy, recognizeCoca-Cola as unrivalled of the leading brands in their top ampere-secondglobal brands rank in 2006. TheBusiness Week-Interbred respectd Coca-Cola at $67,000 million in 2006.Coca-Cola ranks wellahead of its besotted competitor Pepsi which has a ranking of 22having a brand grade of $12,690million The Companys strong brand cling to facilitates customer recall and capturesCoca-Cola topenetrate markets. However, the go withis threatened by intense competition which couldhavean adverse impact on the companys market share. Strengths Weaknesses Worlds leading brand Large scale of operations Robust reven ue enhancement growth in third segment Negative publicity Sluggish performance in mating the States subside in cash from operatingactivities Opportunities ThreatsAcquisitions Intense competition ripening bottled water market exploitation Hispanic population in USIntense competition. Dependence on bottling partners Sluggish growth of carbonated beverages Strengths Worlds leading brand Coca-Cola has strong brand recognition across the globe. The company has a leading brand value and astrong brand portfolio. Business-Week and Interbrand, a brandingconsultancy, recognize. Coca-Cola as one of the leading brands in their top 100global brands ranking in2006. The Business Week-Interbrand valued Coca-Cola at $67,000 million in 2006.Coca-Colaranks well ahead of its close competitor Pepsi which has a ranking of 22having a brand value of$12,690 million Furthermore, Coca-Cola owns a large portfolio of produce brands. The company owns four of the top louvre soft drink brands in theworld Coca -Cola, Diet one C, Sprite and Fanta. Strong brands allow the companyto introduce brand extensions suchas Vanilla Coke, CherryCoke and Coke with Lemon. Over the years, the company hasmade large investments in brand promotions. Consequently, Coca-cola is oneof the best acceptglobal brands.The companys strong brand value facilitates customer recall andallows Coca-Cola to penetrate new markets and consolidate existing ones. Strengths Worlds leading brand Coca-Cola has strong brand recognition across the globe. The company has a leading brandvalue and astrong brand portfolio. Business-Week and Interbrand, a brandingconsultancy,recognize. Coca-Cola as one of the leading brands in their top 100global brands ranking in2006. The Business Week-Interbrand valued Coca-Cola at $67,000 million in 2006.Coca-Colaranks well ahead of its close competitor Pepsi which has a ranking of 22having a brand value of$12,690 million Furthermore, Coca-Cola owns a large portfolio ofproduct brands. The companyo wns four of the top five soft drink brands in theworld Coca-Cola, Diet Coke, Sprite and Fanta. Strong brands allow the companyto introduce brand extensions suchas Vanilla Coke, CherryCoke and Coke with Lemon. Over the years, the company hasmade large investments in brandpromotions. Consequently, Coca-cola is oneof the best recognizedglobal brands.Thecompanys strong brand value facilitates customer recall andallows Coca-Cola to penetrate newmarkets and consolidate existing ones. Coca-Cola Company, The SWOT Analysis Large scale ofoperations With revenues in excess of $24 billion Coca-Cola has a large scale ofoperation. Coca-Cola is the largest manufacturer, distributor and marketer ofnonalcoholic beverage concentrates and syrups in the world. Coco-Cola is exchange trademarked beverage products since the year 1886 in the US. The company currently sells its products in more than 200 countries.Of the approximately 52billionbeverageservingsofalltypesconsumedworldwideeveryday,beveragesbea ringtrademarks owned by or licensed to Coca-Cola account for more than 1. 4 billion. The companys operations are supported bya strong infrastructure across the world. Coca-Cola owns andoperates32principal beverage concentratesand/orsyrup manufacturing plantslocatedthroughout the world. In addition, it owns or has interest in 37 operations with 95 principalbeverage bottling andcanningplantslocated outside theUS.Thecompany similarly owns bottledwaterproductionandstillbeveragefacilitiesaswellasafacilitythatmanufacturesjuiceconcentrates. Thecompanys largescaleof operation allows ittofeed forthcomingmarkets withrelative ease and enhancesits revenue generation capacity. Robust revenue growth in lead segments Coca-colas revenues recorded a double digitgrowth, in three operating segments. These threesegments are Latin America, East, South Asia, andPacific Rim and Bottling investments. Revenues from Latin America grew by 20. % during fiscal 2006,over 2005. During thesameperiod, revenues fro m East, South Asia, and Pacific Rim grew by 10. 6% while revenues fromthebottling investments segment by19. 9%. Together, thethree segments ofLatin America, East,South Asia, and Pacific Rim and bottling investments, accounted for 34. 8% of total revenuesduring fiscal 2006. Robust revenues growth rates in these segmentscontributed to top-linegrowth for Coca-Cola during 2006. Weaknesses Negativepublicity The companyreceived negative publicityinIndiaduringSeptember 2006.ThecompanywasaccusedbytheCenterforScienceandEnvironment(CSE)ofsellingproductscontainingpesticide residues. Coca-Cola products sold in and around the Indian national capital regioncontainedahazardouspesticideresidue. Thesepesticides included chemicals whichcouldcause cancers, damage the nervousand reproductive systems and reduce bonemineral density. Such negative publicity could adversely impact the companys brand image and the demand forCoca-Cola products. This could also have anadverse impact on the companys growth pro spectsin the international markets.Sluggish performance in North America Coca-Colas performance in North America was far from copious. North America is Coca-Colascore market generatingabout 30%of totalrevenues duringfiscal2006. Therefore, astrongperformance in North America is important for the company. Coca-Cola Company, The SWOT AnalysisIn North America the sale of unit cases did not record any growth. Unit case retail volume inNorth America decreased 1% primarily due to bleached sparkling beverage trends in the second halfof2006 anddeclinein thewarehouse-delivered water andjuicebusinesses.Moreover,thecompany also expects performance inNorth America to beweak during 2007. Sluggish performance in North America could impact the companys future growth prospects andprevent Coca-Cola from recording a morerobust top-line growth. Decline in cash fromoperating activities The companys cash flow from operating activities declined during fiscal 2006. Cash flows fromoperating activities dec reased 7% in 2006 compared to 2005. concluding cash provided byoperatingactivities reached $5,957 million in 2006, from $6,423 million in 2005.Coca-Colas cash flowsfrom operating activities in 2006 also decreased compared with 2005 as a leave alone of a contributionofapproximately $216million toatax-qualified trusttofund retiree medical benefits. Thedecrease was also the result of certain marketing accruals recorded in 2005. Decline in cash from operatingactivities reduces availability of funds for the companys investingand financing activities, which, in turn, increases thecompanys exposure to debt markets andfluctuating interest rates. Opportunities AcquisitionsFor the last one year, Coca-Cola has been aggressively adopting the inorganic growth path. During2006,itsacquisitionsincludedKerryBeverages,(KBL),whichwassubsequently,reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a controlling shareholdingin KBL, its bottling joint venture with the Kerry Group, in Hon g Kong. The acquisition extendedCoca-Colas control over manufacturing and diffusion joint ventures in nine Chinese provinces. In Germany the company acquired Apollinaris which sells sparkling and still mineral water inGermany.Coca-Cola has also acquired a 100% interest in TJC Holdings, a bottling company inSouth Africa. Coca-Cola also made acquisitions in Australia and New Zealand during 2006. These acquisitions strengthened Coca-Colas international operations. These also give Coca-Cola an opportunity for growth, through new product launch or greater penetration of existingmarkets. Strongerinternationaloperationsincreasethecompanyscapacitytopenetrateinternationalmarkets and also gives it an opportunity to diversity its revenue stream.Coca-Cola Company, The SWOT Analysis Growing bottled water market Bottled water is one of the fastest-growing segments in the worlds food and beverage marketowing to increasing health concerns. The market for bottled water in the US generated revenueso f about $15. 6 billion in 2006. Market consumption volumes were estimated to be 30 billion litersin 2006. The markets consumption volume is evaluate to rise to 38. 6 billion units by the end of2010. This represents a CAGR of 6. 9% during 2005-2010.In terms of value, the bottled watermarket is forecast to reach $19. 3 billion by the end of 2010. In the bottled water market, therevenueofflavoredwater(water-based, slightly sweetenedrefreshmentdrink)segmentisgrowing by about$10 billion annually. The companys Dasani brand water isthe third best-sellingbottled water in the US. Coca-Cola could leverage its strong position in the bottled water segment to take advantage ofgrowing demand forflavored water. Growing Hispanic population in US