Coca-Cola Case Study

Coca-Cola Case Study

1. SWOT ANALYSIS: Strengths Coca-Cola has been an intricate part of American culture for over a century. The product's image is laden with sentimentality, and this is animage many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greateststrengths. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment" (Allen, 1995).

Additionally, according to Bettman, et. al,(1998) Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companiesare locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, itsmain 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 LatinAmerica 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 Fortunemagazine, "In Japan, unit case sales fell 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. LatinAmerica, Southeast Asia, and Japan account for about 35% of Coke's volume and none of these markets are performing to expectation (Mclean, 1998).

Opportunities: Brand recognition is the significantfactor affecting Coke's competitive position. Coca-Cola's brand name is known well throughout 90% of the world today. The primary concern over the past few years has been to get this name brand to be...