Swot Analysis for Coke

Strengths Weaknesses/Limitations, Opportunities, andThreats involved in the business Coca pinhead SWOT ANALYSIS The Coca-Cola Company (Coca-Cola) is a booster cablemanufacturer, distributor and marketer ofNon-alcoholic beverage concentrates and syrups, in the world. Coca-Cola has a backbreaking notename and brandportfolio. Business-Week and Interbrand, a brand consultancy, recognizeCoca-Cola as iodine of the lead-in brands in their top snow spheric brands ranking in 2006. TheBusiness Week-Interbred determined Coca-Cola at $67,000 billion in 2006.Coca-Cola ranks wellahead of its final stage opponent Pepsi which has a ranking of 22having a brand value of $12,690million The Companys self-colored brand value facilitates customer take out and allowsCoca-Cola to fall into place markets. However, the confederationis threatened by intense competition which couldhavean adverse regard on the unions market share. Strengths Weaknesses Worlds leading brand Large dental plate of trading operations rugged revenue addition in iii segment Negative packaging Sluggish consummation in spousal relationship the States Decline in cash from operateactivities Opportunities ThreatsAcquisitions Intense competition maturation bottled water market Growing Latino population in USIntense competition. Dependence on bottling partners Sluggish growth of carbonate beverages Strengths Worlds leading brand Coca-Cola has slopped brand cognizance across the globe. The lodge 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 cherished 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 freehanded portfolio ofproduct brands. The company owns four of the to p quint soft swallow brands in theworld Coca-Cola, Diet Coke, Sprite and Fanta. square brands allow the companyto introduce brand extensions suchas vanilla extract Coke, CherryCoke and Coke with Lemon. oer the years, the company hasmade large investments in brand promotions. Consequently, Coca-cola is oneof the best acceptedglobal brands.The companys strong brand value facilitates customer swallow andallows Coca-Cola to penetrate new markets and unite 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 ow ns a large portfolio ofproduct brands. The companyowns 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 sell trademarked beverage products since the year 1886 in the US. The company currently sells its products in more than 200 countries.Of the just about 52billionbeverageservingsofa lltypesconsumedworldwide bothday,beveragesbearingtrademarks 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 as well owns bottledwaterproductionand remedybeveragefacilitiesaswellasafacilitythatmanufacturesjuiceconcentrates. Thecompanys largescaleof operation allows ittofeed upcomingmarkets withrelative quieten and enhancesits revenue generation capacity. Robust revenue growth in tether segments Coca-colas revenues recorded a double digitgrowth, in leash operational segments. These threesegments are Latin the States, East, South Asia, andPacific brim and Bottling investments. Revenues from Latin America grew by 20. % during fiscal 2006, everyplace 2005. During thesameperiod, revenues from 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 company reliable negative publicityinIndiaduringSeptember 2006.Thecompanywasaccusedbythe perfumeforScienceandEnvironment(CSE)ofsellingproductscontainingpesticide resi out-of-pockets. Coca-Cola products sold in and around the Indian national capital regioncontainedahazardouspesticideresidue. Thesepesticides included chemicals whichcouldcause cancers, damage the noisomeand reproductive systems and reduce bonemineral density. Such negative publicity could adversely impact the companys brand image and the invite forCoca -Cola products. This could also have anadverse impact on the companys growth prospectsin the international markets.Sluggish performance in northeastward America Coca-Colas performance in North America was far from robust. 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 bailiwicks did not record any growth. Unit case retail volume inNorth America decreased 1% primarily due to weak sparkling beverage trends in the second halfof2006 and spillin 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 arrangement a morerobust top-line growth. Decline in cash fromoperating activities The companys cash flow from operating activities declined during fiscal 2006. specie flows fromoperating activities decreased 7% in 2006 compared to 2005. Net 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 result 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 funding 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 despotic shareholdingin KBL, its bottling joint venture with the Kerry Group, in Hong Kong. The acquisition extendedCoca-Colas control over manufacturing and distribution 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 hazard 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-development segments in the worlds food and beverage marketowing to increasi ng health concerns. The market for bottled water in the US generated revenuesof about $15. 6 billion in 2006. Market purpose volumes were estimated to be 30 billion litersin 2006. The markets consumption volume is expected to rhytidoplasty to 38. 6 billion units by the end of2010. This represents a CAGR of 6. 9% during 2005-2010.In footing 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 sweetened refreshmentdrink)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