Coca-Cola Company stands out as the leading producer of non-alcoholic brands. The management of Coca-Cola Company is continuously exploring ways of maintaining a lead in the beverage market against its competitors. The management of Coca cola carries an extensive SWOT analysis that mainly involves strengths, weaknesses, opportunities and threats. The SWOT analysis and TOWS matrix presented in this paper provide a succinct of strategies. Coca-Cola uses the strategies to create a competitive edge in the beverage industry that has witnessed increased competition. Creating a SWOT analysis and TOWS matrix has the potential of improving the performance of Coca-Cola.
Today, Coca-Cola Company enjoys a successful international market for its variety of products as a result of the company’s innovation. Since its establishment, Coca-Cola has excelled in the development of new product lines, for its consumers. Coca-Cola is currently developing a new product of drinks aimed at meeting the evolving needs of its customers (Geller, 2010). The development of new product lines for various markets has made Coca-Cola edge out competition in various markets. This process has been possible because of the company’s support of a strong beverage science team that has overseen the production of new products, like sports drink, energy drink, functional drink, juice drinks, ready-to-drink coffee, and tea that create the firms’ product line.
Coca-Cola Company has also made impressive strides in building its brand name via competitive advertisement strategies. Compared to its competitors, Coca-Cola has produced advertisements that it believes will be more captivating to consumers. Recent advertisements such as the ‘Coke side of life’ have received a positive welcome from consumers. In a research carried out by Durbin (2011), Coca-Cola was using novel channels of advertisement through social media such as the face book.
Coca-Cola Company has over the years engaged itself in building a brand name that assures the company of a wide range of consumers worldwide. Coca-Cola has maintained a strong brand name shown through the company’s activities and culture (Coca-Cola tops world brands, 2011). Because of its brand image, a majority of the large corporations, retailers, chain restaurants, small business corporations, small vendors, and household families widely identify themselves as consumers of Coca-Cola products. The impact of this has led to the successive penetration of Coca-Cola’s product into several markets.
According to Protocol (2010), managers should determine the various weaknesses that could decrease the company’s market dominance over time. Coca-Cola Company has shown weakness in the advertisement of its product as compared to Pepsi Company, who is the main compettor. Coca-Cola Company should intensify its advertisement level by using of media, especially audio and visual to attract customers thus, increasing the purchasing power of consumers of Coca-Cola products.
Coca-Cola Company mainly deals with the manufacture of sports drink, energy drink, functional drink, juice drinks, ready-to-drink coffee, and tea (Geller, 2010). Coca-Cola Company should be careful when choosing the portfolios to invest its returns in such that the company’s finances are not in a risky position. Coca-Cola Company management should allocate resources in terms of productivity; those that yield more profits can get more funds as compared to the rest of the merchandises.
Coca-Cola Company faces weakness in terms of robustness of some of its products, especially carbonated soft drinks. With a majority of consumers looking out for a healthy and nutritious product, the purchase of the non-healthy soft drinks' likely coke will fall (Bahrat, 2011). Coca-Cola Company should come up with innovations to guarantee production of healthy fresh fruit drinks. Coca-Cola should increase its variety to add to the recently launched Minute Maid to cater for the health-conscious consumers.
Durbin (2011) talks about, the importance of a company venturing into other opportunities existent that are not in the normal line of business, with the main goal of increasing a company’s profitability level. The Coca-Cola Company is remarkably, the third best acknowledged brand for its production and distribution of Dasani bottled water in the United States (Corporate, 2010). The Coca-Cola’s priority in ensuring high safety of its purified water from the collection point, processing plant, packaging and delivering of the consumer, is what has seen the company outsmart its competitors. It is essential for Coca-Cola Company to take advantage of the profitable market by increasing its investment in the purified water portfolio.
Coca- Cola Company should focus more on the acquisition of other subsidiary companies that have an association with the food and beverage industry in order to generate more returns from the investments. In October 2010, the Coca-Cola Company took over the Coca-Cola enterprise that saw the parent company take control of North American bottling operations (Corporate, 2011). In return, Coca-Cola enterprise stood to receive Cokes bottling operations in Norrway and Sweden that will oversee the company exclusively bottling coke in Norway, Luxembourg, Belgium, Netherlands, France and Great Britain. With increased acquisition, the universal operations of the Coca-Cola Company will lead to sustainable growth.
Coca-Cola Company had a growth in its income from $30,990 million in the year 2009 to $ 35,119 million in the year 2010, as shown in the audited profit and loss report at the end of the financial year (Corporate, 2011). Coca-Cola Company can spend the largely recorded profits in production and promotion of its other products that most consumers are not aware of them. By doing so, the Coca-Cola Company will increase its profitability through an increased level of sales of the variety of products it will offer in the consumer market.
Amason (2011) clarifies that; threats can arise during the normal running of the business thus calling for companies to identify them by developing strategies to them. The most common threat for the Coca-Cola Company is the competitors who operate in the food and beverage industries. Notably, Coca-Cola company faces threat from Pepsi, Nestle, and Card bury Schweppes. With all the firms targeting the non-alcoholic beverage market, the success of a company will be only through the use of advertising, pricing, promotion events, and innovations.
Coca-Cola Company as one of the carbonated drink producers’ face risk of reduction in sales volumes as consumers are gearing towards consumption of healthy products. Health-related research point out that carbonated drinks that include sodas contain large amounts of sugar and a lot of chemicals. Many consumers believe that carbonated drinks contain a lot of sugars and dangerous chemicals that are derived from the raw materials used to manufacture the drinks. According to Proctor (2010), companies should establish alternative strategies of producing a nutritious and healthy soft drink in order to respond to customers need.
Coca-Cola Company source's packaging bottles used for packaging the beverages, from other suppliers who may sometime fail to deliver in time. In such situations, the company could face a crisis for lack of packaging material if the suppliers fail to deliver. The Coca-Cola Company will subsequently run into a loss as it cannot sell its product without the packaging materials. Thomas (2011) clearly explains how the Coca-Cola Company needs to consider recycling and production of packaging products in order to ensure maximization of profits.
A threat, opportunity, weakness, and strength (TOWS) matrix create its basis on four strategies that give a detailed analysis of a Company. The matrix gives ways in which a company can combine internal strengths or internal weaknesses with external threats, and opportunities in order to achieve success of the Coca-Cola Company (Durbin, 2011).