STRENGTH

Adequate Financial Resources

o

With 500 brands in 200 countries, Coca Cola generates huge REVENUE, How?

In 2011, the net income was $ 9029 millions

STRENGTH
Cost Advantages
o

Low cost leads to higher profits for coco-cola Coca-cola achieve both competitive advantages, differentiation and low cost, which maintain its low cost whereas simultaneously differentiate its products.

STRENGTH
Economies of Scale
o

They have economies of scale in technical, managerial, production, risk bearing, marketing and financial factors.

STRENGTH
Management

Management Training Programs

STRENGTH
Manufacturing Capability

Coca-Cola recently announced plans to invest more than $30 billion in the companys brand infrastructure over the next five years

Pakistans Scenario!

WEAKNESSES
No Clear Strategic Direction

Coke is criticized for lofty levels of pesticides in its products, exploitative labor practices, environmental destruction, building plants in different countries those employed slave labor and monopolistic business practices. Unhealthy beverages

WEAKNESSES
Obsolete Facilities

Coca-Cola's Refillable Glass Bottles Now Obsolete

WEAKNESSES
Lack of Managerial Depth and Talent

The company produces products that are not considered healthy

WEAKNESSES
Missing Some Key Skills or Competence

The company owns or licenses more than 500 brands of beverages, and there are not a huge amount of sub-industries in the beverage market that Coca-Cola does not operate in.

WEAKNESSES
Weak Market Image

Gulf Countries Scenario!

WEAKNESSES
Weak Distribution Channels

By giving the distributing and bottling authorization of its own products, it results in dropping a major portion of potential revenue.

WEAKNESSES
Higher Overall Unit Cost

Unit Cost is increasing due to rapidly increasing in the price of ingredients especially Sugar.

OPPORTUNITIES
Serve Additional Costumer Groups

Coke has started to work with the international labor organizations international program on the removal of child labor.

With coke, Cock bill and Melinda Gates Foundation and nonprofit TechnoServe initiated a partnership to facilitate more than 50,000 small fruit farmers in Kenya Uganda to increase their productivity and double their incomes by 2014.

OPPORTUNITIES
Vertical Integration

Coke purchased the North American operations of its largest bottler and they declared that there new North American structure will create an unparalleled combination of businesses, which will serve as our passport to winning in the worlds largest nonalcoholic ready-to-drink profit pool. Coke will control about 90% of the bottling of its products in North America. It expects cost savings of $350 million over four years and that the acquisition will add to earnings per share by 2012.

OPPORTUNITIES
Falling Trade Barriers

70% of the revenue comes from outside the united states and wide variety of the coco-cola products is sold in restaurants, stores and vending machines over 200 countries which shows that trade barriers are not too high which can create any sort of issue in the trading of coco-cola products.

OPPORTUNITIES
Complacency against Rival Firms

Brand equity and loyal customers are the main reasons of Coca Cola that create competition among rival firms.

Coca Cola compete with their rivals on the basis of channel marketing, strong brand portfolio, multi segmentation, managerial expertise and sustainable development.

OPPORTUNITIES
Diversify into Related Products

Coco-cola have most diversified range of products such as Coco-Cola Cherry, Coco-Cola Vanilla, Diet Coke, Diet Coke Caffeine-Free, CaffeineFree Coco-Cola, Coco-Cola Zero, Vitamin water, Fanta, Sprite and range of lime or coffee and lemon.

THREATS
Entry of Low Cost Foreign Competitors

Coca Cola have not only competitors like Pepsi, Nestle and others also giving tough time.

Globalization removes the barriers so it also attracts the new comer companies for having the same business.

THREATS
Rising Sales of Substitute Products

Coco-cola also faces tough competition from local brands in all over world such as in central and South America Kola Real also known as Big Cola in Mexico is giving tough competition to coco-cola etc. large numbers of substitutes are available in the market such as water, tea, juices, coffee etc.

THREATS
Costly Regulatory Requirements

Coco-cola is facing different regulations and policies set by government in different countries. Coco-cola has to be careful with lawsuits.

THREATS
Growing Bargaining Power of Customers or Suppliers

Bargaining power of customers can become threat for coco-cola if GDP decreases of the country than this can result in lower purchasing powers, as the purchasing power will slower down than the economy will also slow down.

THREATS
Changing Buyer Needs/Tastes

Changing consumer lifestyle; by becoming health conscious and preferring substitute products is one of the major threats for coco-cola.

Pepsi is doing better!

THREATS
Adverse Demographic Changes

For a company the most common threat is the cultural differences because every nation or every geographic boundary has different culture. Same threat faced by Coca Cola Company because they have wide network working all over the world. Japan Scenario!