Swot Analysis for Coke

Strengths Weaknesses/Limitations, Opportunities, andThreats obscure in the business Coca Cola elevate ANALYSIS The Coca-Cola political party (Coca-Cola) is a starring(p)manufacturer, distributer and marketer ofNon-alcoholic deglutition concentrates and syrups, in the public. Coca-Cola has a wet distinguishname and fire tarnishportfolio. stage business-Week and Interbrand, a branding consultancy, recognizeCoca-Cola as ane of the leading brands in their bemuse-up the ghost 100 orbicular brands rank in 2006. TheBusiness Week-Interbred valued Coca-Cola at $67,000 whizz thousand gazillion in 2006.Coca-Cola ranks wellheadahead of its close rival Pepsi which has a rank of 22having a brand value of $12,690 million The Companys bulletproof brand value facilitates node recall and allowsCoca-Cola topunch markets. However, the followis threatened by smart competition which couldhavean adverse impact on the social clubs market share. Strengths Weaknesses Worlds leading bran d Large scale of trading operations copious revenue festering in triple piece Negative publicity Sluggish carrying out inNorth the States slump in notes from runactivities Opportunities ThreatsAcquisitions Intense competition Growing bottled weewee market Growing Hispanic population in USIntense competition. Dep curioence on bottling partners Sluggish outgrowth of carbonate beverages Strengths Worlds leading brand Coca-Cola has safe brand recognition across the globe. The beau monde has a leading brand value and a bullnecked brand portfolio. Business-Week and Interbrand, a brandingconsultancy, recognize. Coca-Cola as one of the leading brands in their top 100 ball-shaped 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 Further more, Coca-Cola owns a thumping portfolio of harvesting brands. The phoner own s four of the top five nuts drink brands in theworld Coca-Cola, Diet Coke, nance and Fanta. Strong brands allow the beau mondeto introduce brand extensions suchas vanilla extract Coke, CherryCoke and Coke with Lemon. over the familys, the telephoner hasmade stupendous investments in brand promotions. Consequently, Coca-cola is oneof the best recognized international brands.The unions hearty brand value facilitates client recall andallows Coca-Cola to penetrate new markets and consolidate alert 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$1 2,690 million Furthermore, Coca-Cola owns a broad 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 node recall andallows Coca-Cola to penetrate newmarkets and consolidate existing ones. Coca-Cola Company, The trick up Analysis Large scale ofoperations With revenues in excess of $24 meg 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 selling trademarked beverage products since the year 1886 in the US. The company currently sells its products in more than 200 countries.Of the approximately 52billionbeverageservingsofalltypesconsumeduniversaleveryday,beveragesbearingtrademarks owned by or authorize to Coca-Cola account for more than 1. 4 billion. The companys operations are supported bya strong infrastructure across the world. Coca-Cola owns andoperates32 leash 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 overly owns bottled wet proceedsandstillbeveragefacilitiesaswellasafacilitythatmanufacturesjuiceconcentrates. Thecompanys largescaleof operation allows ittofeed upcomingmarkets withrelative facilitate and enhancesits revenue generation capacity. Robust revenue growth in three segments Coca-colas revenues recorded a double digitgrowth, in three operating segments. These threesegments are Latin the States, East, South Asia, andPacific bank and Bottling investments. Revenues from L atin the States grew by 20. % during fiscal 2006,over 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 perfect revenuesduring fiscal 2006. Robust revenues growth rates in these segmentscontributed to top-linegrowth for Coca-Cola during 2006. Weaknesses Negativepublicity The companyreceived disconfirming publicityinIndiaduringSeptember 2006.ThecompanywasaccusedbytheCenterforScienceandEnvironment(CSE)ofsellingproductscontainingpesticide residues. Coca-Cola products interchange in and around the Indian national majuscule regioncontainedahazardouspesticideresidue. Thesepesticides included chemicals whichcouldcause cancers, damage the sickishand reproductive systems and reduce bonemineral density. such(prenominal) negative publicity could adversely impact the companys brand image and the demand forCoca-Cola products. This could in any case have anadverse impact on the companys growth prospectsin the international markets.Sluggish performance in North America Coca-Colas performance in North America was far from robust. North America is Coca-Colascore market generatingabout 30%of add togetherrevenues duringfiscal2006. Therefore, astrongperformance in North America is important for the company. Coca-Cola Company, The nerd AnalysisIn North America the change of unit cases did not record any growth. unit of measurement case retail volume inNorth America change magnitude 1% primarily due to pallid sparkly beverage trends in the second halfof2006 and tumblein thewarehouse-delivered weewee andjuicebusinesses.Moreover,thecompany in addition expects performance inNorth America to beweak during 2007. Sluggish performance in North America could impact the companys future growth prospects andprevent Coca-Cola from recording a morerobust top-line growth. Decline in notes fromoperating activities The companys cash flow from operating activities declined during fiscal 2006. hard currency 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 trustto storage retiree medical benefits. Thedecrease was also the result of authentic marketing accruals recorded in 2005. Decline in cash from operatingactivities reduces availability of funds for the companys investingand financing activities, which, in turn, increases thecompanys exposure to debt markets andfluctuating interest rates. Opportunities AcquisitionsFor the last one year, Coca-Cola has been sharply adopting the inorganic growth path. During2006,itsacquirementsincludedKerryBeverages,(KBL), whichwassubsequently,reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a controlling shareholdingin KBL, its bottling articulation 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 wet 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 overbold Zealand during 2006. These acquisitions strengthened Coca-Colas international operations. These also give Coca-Cola an opportunity for growth, through new product arrange 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-growing segments in the worlds forage and beverage marketowing to increasing health concerns. The market for bottled water in the US generated revenuesof about $15. 6 billion in 2006. Market consumption volumes were estimated to be 30 billion litersin 2006. The markets consumption volume is expected to deck up to 38. 6 billion units by the end of2010. This represents a CAGR of 6. 9% during 2005-2010.In terms of value, the bottled watermarket is point to reach $19. 3 billion by the end of 2010. In the bottled water market, therevenueofflavoredwater(water-based, slightly dulcetrefreshmentdrink)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 backpack advantage ofgrowing demand forflavored water. Growing Hispanic population in US