SWOT and PEST analysis of Coca Cola

SWOT and PEST analysis of Coca Cola

Coca cola is a beverage company with more than 300 brands. Coca cola also offers services to more than 200 countries in the globe.  It was ranked  the Fortune 500 company with the best marketing strategies.

Below is the SWOT analysis of Coca Cola Company

SWOT analysis of coca cola

Strength

• Coca cola is the most recognized brand in the globe
• Coca cola has the biggest shares in the beverage market (over 45 %).
• Coca coal has the unsurpassed advertising strategies for instance sponsoring of world cups games, and English premier leagues,
• Customers are loyal to coca cola beverages

Weakness

• Focuses on the production of carbonated drinks which are likely to be ignored by consumers due to health issues
• Coca cola is not diversified. It focuses on production of beverage products only’

Opportunities

• Increasing Demand of beverages in the US
• Demand of coca cola beverages in developing countries

Threat

• Reduction of consumption of carbonated drinks
• Water scarcity in the near future
• Competition from other emerging beverage companies

Pest Analysis of Coca Cola

PEST analysis is an analysis which is applied to define the actions which are important and necessary to activate immediately in a company. The continuously changing environment, technology, and competition forces Coca-Cola think strategically and make a quick decision.

Political

Some governments like the Chinese government have regulations that every company has to fulfill when producing its products (You can Google and read about the regulation “China Sets Up a Food Safety Super-Regulator”). Therefore, before beginning to supply its products in China Coca-Cola ensures that it has met the required standards to avoid political conflicts.

Then again, before coca cola enters a new market it has to consider the religious beliefs of the people. For instance, when coca cola began distributing its products in Malaysia it had to incorporate a Muslim symbol by adding “Halal” stamp to their products

Other political factors affecting coca cola include

Changes in Laws and Regulations

Political regulations in international markets

Civil wars for instance the 2007 post election violence in Kenya affected coca cola sells

Economic

The price at which Coca-Cola sells its products is influenced by the economic state of a country. For instance, when inflation hit China Coca-Cola had to reduce the price of its products. (You can Google and read about the china inflation and its effect on Coca-Cola products)

Also the 2001 recession in America greatly affected the coca cola sells

Social

In this contemporary world, consumers tend to change their lifestyle. Consumers are more aware about health issues and therefore have reduced drinking carbonated beverages to avoid diabetes or other diseases.  Therefore, Coca Cola’s demand for carbonated beverages has reduced and the incomes also decreased.

To cope with this social demand of non carbonated products, Coca-Cola produces products that are not carbonated like juices (Minute Maid),  and sport drinks (Powerade).

Technology

Coca-Cola uses modern technologies for production and marketing of its products.  It mostly relies on the internet and social media for advertising and selling of its product.

The marketing director of Coca-Cola noted that, technology is among those factors that contributed to high sell in 2012

Those who had requested for the PEST analysis of Coca-Cola it is now available.