Strengths Weaknesses/Limitations, Opportunities, and Threats involved in the organization Coca Diet coke SWOT ANALYSIS The Pepsi Company (Coca-Cola) is a leading manufacturer, distributor and marketer of Non-alcoholic beverage focuses and syrups, in the world. Pepsi has a good brandname and brand portfolio. Business-Week and Interbrand, a logos consultancy, recognizeCoca-Cola as one of the leading brands inside their top 100 global brands position in 2006.
TheBusiness Week-Interbred appreciated Coca-Cola by $67, 1000 million in 2006.
Coca-Cola rates wellahead of its close competitor Pepsi which has a ranking of 22 having a brand benefit of $12, 690million You�re able to send strong company value encourages customer call to mind and allows Coca-Cola topenetrate market segments. However , the company is endangered by strong competition which in turn could havean adverse impact on you can actually market share. Strengths Weaknesses World’s leading manufacturer Large scale of operations Robust revenue development in three segment Unfavorable publicity Sluggish performance in North America Drop in cash from operating activities Opportunities Risks
Acquisitions Intense competition Developing bottled water market Growing Hispanic population in USIntense competition. Dependence on bottling partners Slower growth of soft beverages Advantages World’s leading brand Coca-Cola has good brand identification across the globe. The corporation has a leading brand worth and a strong brand collection. Business-Week and Interbrand, a branding consultancy, acknowledge. Coca-Cola among the leading brands in their top 100 global brands ranking in2006. The Business Week-Interbrand valued Pepsi at $67, 000 mil in 2006.
Coca-Colaranks well in front of its close competitor Pepsi which has a ranking of 22 having a brand benefit of $12, 690 million Furthermore, Coca-Cola owns a large collection of product brands. The company possesses four with the top five soft drink brands in the world: Coca-Cola, Diet Softdrink, Sprite and Fanta. Good brands allow the company to introduce brand extensions such as Vanilla Coke, CherryCoke and Coke with ” lemon “. Over the years, the company has made significant investments in company promotions. Therefore, Coca-cola can be one of the best recognized global brands.
The company’s solid brand worth facilitates buyer recall and allows Coca-Cola to penetrate fresh markets and consolidate existing ones. Strengths World’s leading brand Pepsi has good brand identification across the globe. The organization has a leading brandvalue and a strong company portfolio. Business-Week and Interbrand, a branding consultancy, recognize. Coca-Cola as one of the leading brands inside their top 100 global brands position in2006. The business enterprise Week-Interbrand respected Coca-Cola in $67, 000 million 5 years ago.
Coca-Colaranks very well ahead of their close competitor Pepsi which has a ranking of 22 having a brandname value of $12, 690 mil Furthermore, Coca-Cola owns a big portfolio of product brands. The companyowns several of the five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta. Strong brands allow the company to introduce manufacturer extensions such as Vanilla Coke, CherryCoke and Coke with Lemon. Over time, the company has made large purchases of brandpromotions. Consequently, Coca-cola is usually one of the best recognized global brands.
Thecompany’s strong brand value facilitates customer recall and allows Coca-Cola to penetrate newmarkets and consolidate existing types. Coca-Cola Company, The SWOT Analysis Large scale of operations With revenues around $24 billion dollars Coca-Cola includes a large scale of operation. Coca-Cola is a largest producer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Coco-Cola is advertising trademarked refreshment products since the year 1886 in the US. The organization currently sells its products in more than 200 countries.
In the approximately 52billion beverage servings of all types consumed worldwide every day, beverages bearingtrademarks owned or operated by or perhaps licensed to Coca-Cola are the cause of more than 1 . 4 billion dollars. The company’s procedures are recognized by a solid infrastructure around the globe. Coca-Cola has and operates 32 principal refreshment concentrates and/or syrup making plantslocatedthroughout the earth. In addition , it owns or has interest in 37 procedures with ninety five principalbeverage bottling and canning plants located exterior the US.
The company also owns bottledwater production and still beverage facilities as well as a facility that manufactures juiceconcentrates. The company’s large scale of operation permits it to feed upcoming markets withrelative convenience and enhances its revenue era capacity. Solid revenue growth in three segments Coca-cola’s revenues recorded a twice digit growth, in three operating segments. These threesegments are Latin America, ‘East, South Asia, and Pacific Rim’ and Bottling investments. Revenues from Latin America grew simply by 20. % during monetary 2006, over 2005. During the sameperiod, income from ‘East, South Asia, and Pacific cycles Rim’ grew by twelve. 6% although revenues from thebottling investments portion by 19. 9%. Together, the three segments of Latin America, ‘East, South Asia, and Pacific Rim’ and bottling purchases, accounted for thirty four. 8% of total revenuesduring fiscal 2006. Robust revenues growth rates in these segments contributed to top-linegrowth for Skol during 2006. Weaknesses Negative publicity The company received negative publicity in India during September 2006.
The company wasaccused by the Center for Science and Environment (CSE) of selling products containingpesticide residues. Pepsi products sold in and around the American indian national capital regioncontained a hazardous pesticide residue. These pesticides included chemical substances which couldcause cancer, damage the nervous and reproductive : systems and reduce bone mineral denseness. Such unfavorable publicity can adversely influence the company’s brand image as well as the demand for Coca-Cola products. This can also have an adverse impact on the company’s growth prospectsin the foreign markets.
Slow performance in North America Coca-Cola’s performance in North America was far from robust. North America is usually Coca-Cola’score industry generating about 30% of total revenues during fiscal 2006. Therefore , a strongperformance in The united states is important intended for the company. Coca-Cola Company, The SWOT AnalysisIn North America the sale of device cases did not record any growth. Unit case selling volume inNorth America lowered 1% mainly due to poor sparkling refreshment trends in the second half of 2006 and decline in the warehouse-delivered water and juice businesses.
Moreover, thecompany also expects performance in North America to be weak during 2007. Sluggish performance in North America may impact the company’s future expansion prospects andprevent Coca-Cola from recording a more robust top-line growth. Decline in funds from operating actions The company’s cashflow from working activities rejected during fiscal 2006. Money flows fromoperating activities reduced 7% 5 years ago compared to 2006. Net cash provided by operatingactivities reached $5, 957 mil in 2006, from $6, 423 million in 2005.
Coca-Cola’s cash flowsfrom operating activities in 2006 also decreased in contrast to 2005 resulting from a contributionof approximately $216 million to a tax-qualified trust to fund retiree medical benefits. Thedecrease was as well the result of certain marketing accruals recorded in 2005. Decrease in money from operating activities reduces accessibility to funds intended for the company’s investingand financing activities, which, subsequently, increases the company’s exposure to financial debt markets andfluctuating interest rates. Options Acquisitions
The past one year, Skol has been strongly adopting the inorganic expansion path. During 2006, its acquisitions included Kerry Beverages, (KBL), which was subsequently, reappointed Coca-Cola China and tiawan Industries (CCCIL). Coca-Cola obtained a controlling shareholdingin KBL, its bottling joint venture with the Kerry Group, in Hong Kong. The purchase extendedCoca-Cola’s control over manufacturing and distribution joint ventures in nine Chinese language provinces. In Germany the corporation acquired Apollinaris which provides sparkling and still mineral water inGermany.
Coca-Cola has additionally acquired a 100% desire for TJC Coalition, a bottling company inSouth Africa. Pepsi also built acquisitions nationwide and New Zealand during 2006. These types of acquisitions increased Coca-Cola’s foreign operations. These types of also offer Coca-Cola an opportunity for development, through new product launch or greater transmission of existingmarkets. Stronger international operations increase the company’s capacity to penetrate internationalmarkets and also gives it a chance to diversity its revenue stream.
Coca-Cola Business, The SWOT Analysis Developing bottled water market Bottled water is among the fastest-growing sections in the world’s food and beverage marketowing to increasing health concerns. Industry for water in bottles in the US produced revenuesof regarding $15. six billion in 2006. Market ingestion volumes had been estimated to get 30 billion dollars litersin 06\. The market’s consumption quantity is supposed to rise to 38. 6th billion products by the end of 2010. This represents a CAGR of six. 9% during 2005-2010.
When it comes to value, the bottled water market is prediction to reach $19. 3 billion dollars by the end of 2010. In the bottled water market, therevenue of flavored water (water-based, somewhat sweetened refreshment drink) segment isgrowing simply by about $10 billion dollars annually. The company’s Dasani brand water is the third best-sellingbottled water in the usa. Coca-Cola could leverage it is strong position in the bottled water segment to take advantage of growing demand for flavored water. Developing Hispanic human population in US
