coca cola swot analysis 2018

THE COCA COLA COMPANY SWOT ANALYSIS 2018

SLIDE | 2

ABOUT COCA COLA

Name The Coca Cola Company

Logo

Industries served Beverage (more than 600 brands)

Geographic areas served Worldwide (more than 200 countries)

Headquarters Atlanta, Georgia, United States

Current CEO James Quincey

Revenue (US$) 41.863 billion (2016) 5.5% 44.294 billion (2015)

Profit (US$) 6.527 billion (2016) 11.2% 7.351 billion (2015)

Employees 100,300 (2017)

Main Competitors

PepsiCo Inc., Dr Pepper Snapple Group, Inc., Unilever Group, Mondēlez

International, Inc., Groupe Danone, Nestlé S.A. and many other beverage

companies.

The Coca Cola Company business overview from the company’s financial report:

The Coca-Cola Company is the world’s largest beverage company. We own or license and market more than 600 nonalcoholic beverage brands:

• sparkling beverages

• waters and enhanced waters

• juices and juice drinks

• ready-to-drink teas and coffees

• energy and sports drinks

SLIDE | 3

BUSINESS DESCRIPTION (1/2) “ ”

• We own and market four of the world’s top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite.

• Beverages bearing trademarks owned by or licensed to us account for 1.9 billion of the approximately 59 billion beverage servings of all types consumed worldwide every day.”[1]

SLIDE | 4

BUSINESS DESCRIPTION (2/2) “ ”

SLIDE | 5

STRENGTHS

1. Dominant market share in the beverage industry

S W

O T

The Coca-Cola

Company is the

largest non-alcoholic

beverage company in

the world.

Figure 1. Largest beverage companies in the world in 2016

Rank Name2016 revenue (in US$

billions)Beverage segment

1. Anheuser-Busch InBev 45.517 Alcoholic

2. The Coca-Cola Company 41.900 Non-alcoholic

3. PepsiCo Inc. 30.144 Non-alcoholic

4. Nestlé S.A. 24.534 Non-alcoholic

5. Suntory Holdings Limited 23.660 Alcoholic

6. Heineken N.V. 22.674 Alcoholic

7. Starbucks Corporation 21.316 Non-alcoholic

8. Diageo plc 13.530 Alcoholic

9. Unilever Group 10.905 Non-alcoholic

10. Pernod Ricard S.A. 9.467 Alcoholic

Source: Beverage Industry[2]

SLIDE | 6

STRENGTHS

Being large and having dominant market share has a few

advantages over competitors:

• Economies of scale;

• Market power over suppliers and competitors;

• Power over the buyers;

• Wide audience reach.

S W

O T

The company owns,

distributes and sells

over 600 various non-

alcoholic beverage

brands in over 200

countries.

1. Strong reliance on carbonated soft drinks to generate the majority of the company’s revenue

SLIDE | 7

WEAKNESSES

S W

O T

72%

28%

Sparkling beverages Still beverages

Carbonated soft drinks (CSD) represent

72 percent of the company’s worldwide

volume sales.

That’s a significant weakness, because

the market for CSD has been declining

over the past 10 years.

In 2016, people drank 23.6% less

sparkling beverages than 10 years ago.

1. Expansion of ready-to-drink (RTD) coffee products in the U.S. market

SLIDE | 8

OPPORTUNITIES

S W

O T

In the U.S., on average the

fastest growing liquid beverage

segment between 2013 and

2016 was RTD coffees.

Figure 3. RTD coffee growth compared to the growth of the whole liquid beverage market in the U.S.

Source: Beverage Marketing Corporation[18][19][20][21][22]

Coca Cola could further

promote its Georgia RTD

coffee brand or acquire some

smaller brands to establish

itself as the RTD coffee leader

in the U.S. market.

2012 2013 2014 2015 2016

Ready-to-Drink Coffee 9.5% 6.2% 10.7% 16.5% 11.0%

Whole Beverage Market 1.0% -0.1% 2.2% 2.8% 3.4%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

1. Obesity concerns may reduce demand for some of the company’s products

Obesity concerns are the no.1 threat that is affecting the company:

“There is growing concern among consumers, public health professionals and

government agencies about the health problems associated with obesity… additional

governmental regulations concerning the marketing, labeling, packaging or sale of our

sugar-sweetened beverages; and negative publicity resulting from actual or threatened

legal actions against us or other companies in our industry… could adversely affect our

profitability.”

SLIDE | 9

THREATS

S W

O T

“ ”

1. The Coca-Cola Company (2017). Form 10-K for the Fiscal Year Ended December 31, 2016. Available at: http://www.coca-colacompany.com/investors/investors-info-sec-filings/ Accessed January 20, 2018

2. Beverage Industry (2017). Top 100 Beverage Companies of 2016. Available at: http://www.bevindustry.com/top-100-beverage-companies-2016-chart Accessed January 20, 2018

3. The Coca-Cola Company (2017). All Brands. Available at: https://cms.coca-colacompany.com/brands/all/ Accessed January 20, 2018

4. PepsiCo (2017). Annual Report 2016. Available at: http://www.pepsico.com/docs/album/annual-reports/pepsico-inc-2016-annual-report.pdf?sfvrsn=0 Accessed January 20, 2018

5. Dr Pepper Snapple Group (2017). Form 10-K for the Fiscal Year Ended December 31, 2016. Available at: http://investor.drpeppersnapplegroup.com/sec-filings?cat=1 Accessed January 20, 2018

6. Nestle (2017). Brands A-Z. Available at: http://www.nestle.com/brands/brandssearchlist Accessed January 20, 2018

7. The Coca-Cola Company (2017). Coca-Cola at A Glance: Infographic. Available at: http://www.coca-colacompany.com/our-company/infographic-coca-cola-at-a-glance Accessed January 20, 2018

8. Interbrand (2017). Best Global Brands 2016. Available at: http://interbrand.com/best-brands/best-global-brands/2016/ranking/ Accessed January 20, 2018

9. Forbes (2017). World’s Most Powerful Brands. Available at: https://www.forbes.com/powerful-brands/list Accessed January 20, 2018





SLIDE | 10

SOURCES (1/3)

14. Harvard T.H. Chan (2016). Soft Drinks and Disease. Available at: https://www.hsph.harvard.edu/nutritionsource/healthy-drinks/soft-drinks-and-disease/ Accessed January 20, 2018

15. Beverage Marketing Corporation (2017). Press Release: Bottled Water Becomes Number-One Beverage in the U.S. Available at: http://www.beveragemarketing.com/news-detail.asp?id=438 Accessed January 20, 2018

16. O’Connor, A (2015). Coca-Cola Funds Scientists Who Shift Blame for Obesity Away From Bad Diets. Available at: https://well.blogs.nytimes.com/2015/08/09/coca-cola-funds-scientists-who-shift-blame-for-obesity-away-from-bad-diets/ Accessed January 20, 2018

17. Gelles, D. (2014). Coke and McDonald’s, Growing Together Since 1955. Available at: http://www.nytimes.com/2014/05/16/business/coke-and-mcdonalds-working-hand-in-hand-since-1955.html Accessed January 20, 2018

18. Beverage Marketing Corporation (2014). Press Release: The U.S. Liquid Refreshment Beverage Market Remained Flat in 2013. Available at:http://www.beveragemarketing.com/news-detail.asp?id=299 Accessed January 20, 2018

19. Beverage Marketing Corporation (2015). Press Release: The U.S. Liquid Refreshment Beverage Marketing Enlarged in 2014, Reports Beverage Marketing Corporation. Available at: http://www.beveragemarketing.com/news-detail.asp?id=335 Accessed January 20, 2018

20. Beverage Marketing Corporation (2016). Press Release: The U.S. Liquid Refreshment Beverage Market Accelerated in 2015, Reports Beverage Marketing Corporation. Available at: http://www.beveragemarketing.com/news-detail.asp?id=382 Accessed January 20, 2018

21. Beverage Marketing Corporation (2017). Press Release: The U.S. Liquid Refreshment Beverage Market Accelerated Again in 2016. Available at: http://www.beveragemarketing.com/news-detail.asp?id=439 Accessed January 20, 2018

22. Beverage Marketing Corporation (2014). Press Release: The U.S. Liquid Refreshment Beverage Market Grew by 1.0% in 2012, Reports BMC. Available at: http://www.beveragemarketing.com/news-detail.asp?id=255 Accessed January 20, 2018

23. Beverage Industry (2017). 2017 State of the Industry: Steady growth in wine, spirits. Available at: http://www.bevindustry.com/articles/90355-state-of-the-industry-steady-growth-in-wine-spirits Accessed January 20, 2018

24. Hayes, A. (2017). US spirits consumption climbs 2.6% in 2016. Available at: https://www.thespiritsbusiness.com/2017/06/us-spirits-consumption-climbs-2-6-in-2016/ Accessed January 20, 2018

25. Business Wire (2017). Global Tequila Market to Witness Growth Through 2021, Owing to the Introduction of New Flavors: Technavio. Available at: http://www.businesswire.com/news/home/20170309005955/en/Global-Tequila-Market-Witness-Growth-2021-Owing Accessed January 20, 2018

SLIDE | 11

SOURCES (2/3)

26. Insider Monkey (2017). 10 Best Selling Tequila Brands in The US. Available at: http://www.insidermonkey.com/blog/10-best-selling-tequila-brands-in-the-us-531701/?singlepage=1 Accessed January 20, 2018

27. Beverage Industry (2017). Strong growth predicted for coconut water, other plant waters. Available at: http://www.bevindustry.com/articles/90346-strong-growth-predicted-for-coconut-water-other-plant-waters Accessed January 20, 2018

28. FoodBev (2017). Global coconut water market forecast for growth of over 25%. Available at: http://www.foodbev.com/news/global-coconut-water-market-forecast-for-growth-of-over-25/ Accessed January 20, 2018

29. The Coca-Cola Company (2016). ZICO Coconut Water Debuts Larger Clear Bottle Design. Available at: http://www.coca-colacompany.com/coca-cola-unbottled/zico-coconut-water-debuts-larger-clear-bottle-design-- Accessed January 20, 2018

30. Strategic Management Insight (2017). PepsiCo SWOT Analysis. Available at: https://www.strategicmanagementinsight.com/swot-analyses/pepsico-swot-analysis.html Accessed January 20, 2018

31. Roesler, N. (2017). Global savory snack market ripe for growth. Available at: http://www.foodbusinessnews.net/articles/news_home/Consumer_Trends/2017/04/Global_savory_snack_market_rip.aspx?ID=%7B8E33588D-569D-442B-A1B3-2B59F1B062D1%7D&cck=1 Accessed January 20, 2018

32. Lee, B. Y. (2017). In Berkeley, Soda Tax Is Doing What It's Supposed To Do. Available at: https://www.forbes.com/sites/brucelee/2017/04/18/in-berkeley-soda-tax-is-doing-what-its-supposed-to-do/#1f771da2cae7 Accessed January 20, 2018

33. American Public Health Association (2016). Impact of the Berkeley Excise Tax on Sugar-Sweetened Beverage Consumption. Available at: http://ajph.aphapublications.org/doi/abs/10.2105/AJPH.2016.303362 Accessed January 20, 2018

34. Kraemer, A. (2017). Coca-Cola And The 'Soda Tax'. Available at: https://seekingalpha.com/article/4082641-coca-cola-soda-tax Accessed January 20, 2018

SLIDE | 12

SOURCES (3/3)

SLIDE | 13

GET THE FULL

PRESENTATION

BUY THE COCA COLA

COMPANY SWOT 2018

https://www.strategicmanagementinsight.com/swot-analyses/coca-cola-swot-analysis.html

coca cola swot analysis 2018

Education