Coca-Cola Case Study :: Business Management Marketing

Coca-Cola Case Study1. SWOT ANALYSIS Strengths Coca-Cola has been an intricate part of American culture for everywhere a century. The products image is laden with sentimentality, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This highly recognizable branding is one of Coca-Colas greatest strengths. Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, to that extent powerful symbol of quality and enjoyment (Allen, 1995).Additionally, according to Bettman, et. al, (1998) Coca-Colas bottling system is one of their greatest strengths. It allows them to conduct business on a global eggshell while at the same time maintain a local approach. The bottling companies argon locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because century does not have outright ownership of its bottling netw ork, its main source of revenue is the sale of concentrate to its bottlers (Bettman, et. al, 1998).Weaknesses Although domestic business as well as many international markets are thriving (volumes in Latin America were up 12%), Coca-Cola has recently reported some declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power. According to an article in Fortune magazine, In Japan, unit case sales cut out 3% in the second quarter of 1998...scary because while Japan generates around 5% of worldwide volume, it contributes three times as much to profits. Latin America, selenium Asia, and Japan account for about 35% of Cokes volume and none of these markets are performing to expectation (Mclean, 1998).Opportunities Brand recognition is the significant factor affecting Cokes competitive position. Coca-Colas brand name is known well throughout 90% of the world today. The primary concern over the past a couple of(prenominal) years has been to get this na me brand to be even better known. Packaging changes have also affected sales and labor positioning, but in general, the public has tended not to be affected by new products (Allen, 1995).Coca-Colas bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse, area (Bettman, et. al, 1998).Threats Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily marital to it.