Threats

People are leaning more towards consuming and purchasing healthier drinks.

With inflation rising more and more, the increase of prices of fizzy drinks opposes a major threat for both the company and the customers.

Coca-Cola in specific will have to raise their prices and/or taxes in order to meet the increasing costs of goods sold (COGs) as Tax increases on Fizzy drinks.

Opportunities

Ageing Population More bottled water

consumed on a global basis

Consumers looking for alternative to alcoholic drinks

More environmentally concerned parties (they could win over their support by producing more green bottles and recyclable bottles).

Not being as harmful to the person as other beverages (i.e. drinks containing alcohol).

More growing food chains signing deals with Coca-Cola for being their suppliers.

Weaknesses

Negative Publicity Some declines in sales

due to decreased customer purchasing power meaning they have less money to spend so premium soft drink producers may suffer financially.

Financial market (due to the market volatility, prices often change and increase)

People want healthier options due to the negative publicity of fizzy sugary drinks – they need to make healthier options. To combat the negative publicity caused by the concern for healthy drinks in the market, Coke can expand upon their Innocent smoothie products.

Because of the high amounts of sugar found in a single can Coca-Cola (6 tea spoons); customers becoming aware of this might decide to switch to healthier options for the

Decline in sales can be stopped by increasing bottled water sales due to more demand.

Creating more environmentally friendly bottles and products could help Coke reach out to the environmentally conscious consumers while also alleviating some of the bad press given to the innocent smoothie brand after they were bought out by Coke.

With Coca-Cola becoming a bigger company by the day and expanding daily, more

beverage needs such as juice or water. Coca-Cola need to somehow decrease the amount of sugar, but at the same time not decrease it so much that it would affect the taste of their product.

Labor costs are rising, raw materials are becoming expensive. To reduce the escalating rising costs, it would be beneficial for the company to shift production facilities to countries with cheap labor like China, Bangladesh, India, Vietnam and other countries.

Sell facilities and units those are not profitable

than it has already expanded, well known food chains will want to team up and sign up with them and make Coca-Cola their beverage supplier.

With more and more customers becoming more environmentally concerned, Coca-Cola could start producing more plastic bottles in order to encourage more people to recycle thus gaining the support of the eco-friendly pressure groups.

Coca Cola products are married by the negative campaigns – that they are not good for health. Such campaigns have badly damaged the image of the company in many areas. To eliminate such image, innovation of new healthier products is necessary.

There are so many companies with whom Coca Cola collaborate with for production. As a cost cutting measure, it would be beneficial for the company to concentrate for mergers in Asia and Latin America.

Smaller companies may pose threat in long run.

On the other hand, Coca Cola hasn’t been innovative in diversifying in its products. Looking out to buy smaller companies that have come up with new 20 and unique drinks is certain to eliminate threats and diversify its products at the same time.

A large population across the globe many not have adequate knowledge about Coke products. There might be misleading information being given out because of political, economic other interests. Internet is such a cheap means to reach out to millions of people in a minimum costs. The company could make use of the Internet to raise awareness on its products and make clear about the negative myths created against its products.

Strengths

Strong cash flow from operations

Leading brand value and strong brand portfolio

People want healthier options so due to a strong cash flow they were able to buy a large stake in innocent

Due to their strong cash flow it means they can afford to target an adult market as an alternative to alcoholic drinks.

Asia and Latin America

Sells products in more than 200 countries

Unique selling point (no alternatives since there is no other carbonated beverage with the same taste)

smoothies. They can use economies

of scale to lower prices dues to despite of inflation

As people buy a lot of healthier drinks nowadays, Coca-Cola expanded its brand awareness, made of Fanta, Sprite and other soft drinks, by buying “natural beverages” ( smoothies, Innocent). It then helps them to gather new consumers.

Being the unique sell point, Coca-Cola can afford to raise the prices in order to meet the COGs. In fact, it won’t cause a decrease in the sales as customers will have no other choices that to continue buying this brand.

Coca Cola has the strengths to invest on marketing and research and development area. Leverage use of R&D & Marketing to compete on global fronts

Coca Cola as a brand is like legend for more than a century. Use this power of brand to influence new consumers

Coke is collaborating with some many local companies in every country. This has

is the fast expanding markets. The company therefore could focus on these regions for sales growth. It is also important that products are redesigned to suit the local needs and taste.

In the last decade, a large population of Asia, Africa and South America came out of the poverty line. These people have more disposable income now besides spending on their basic needs. The company might strategize to reach out this section of population thereby increasing the customer base by huge number.

Coca Cola has millions of loyal customers who heavily rely on products it brings out. To keep these loyal customers come again to buy Coca Cola products, it is important that the company comes up with new products with new taste and variety. Also, it is important that the products reach to these loyal customers on time.

Smaller companies always come up with new variety and taste of

diversified the investment and reduced the opportunity to produce more with less investment. It is important that Coca Cola do research on possibility of concentrating on economy of scale

There are myths and negative stores being circulated regarding the quality of coke products. Further, there are millions of consumers who avoid coke products because they are concerned of their health. It would address the concerns of the conscious consumers if Coca Cola could invest on R&D to find out what impact would its products have on consumers’ health.

drinks. It would be in favor of Coca Cola to buy such smaller competitors as a step towards diversification in its products.