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Coca Cola Swot

COCA-COLA CO, THE
STRATEGIC EVALUATION

Swot analysis

Strengths
• Soft drinks number one – with flagship carbonates brands Coca-Cola and Diet Coke globally ranked first and third respectively, The Coca-Cola Company is the world's leading soft drinks company.
• Non-carbonates focus – spurred by the impact of wellbeing trends in carbonates, the company hasdeveloped a strong presence in non-carbonates with key brands Dasani (bottled water), Minute Maid (fruit/vegetable juice) and Powerade (functional drinks).
• Strong cash generator – The Coca-Cola Company boasts a strong balance sheet with long-term debt to total capital of just 15%. The company can use its free cashflow for dividends, share repurchase and acquisitions.
• Knowledge and understanding of trends – the company has demonstrated astute brand development with low-calorie emphasis across much of its product portfolio, particularly carbonates.
• Heavyweight advertiser – The Coca-Cola Company maintains a highly visible presence by aggressive marketing strategies, using music and sports celebrities to target potential markets.
• Global reach – the company has strong operations in many major markets which potentially enable it to launch and build mega brands.

Weaknesses
• Global over-exposure – at a time when international expansion is a key growth strategy in soft drinks, The Coca-Cola Company’s extensive global reach leaves relatively limited scope for further expansion.
• Heavy reliance on carbonates – in spite of recent heavy investment in non-carbonates, the company remains over-dependent on carbonates in terms of its global soft drinks revenue.
• Complex bottling issues – The Coca-Cola Company’s existing distribution system, which relies on bottlers, was primarily designed for carbonates and could be less efficient and potentially costly for the production of non-carbonates.

Opportunities
• Chinese soft drinks – the Olympic Games offer potential growth across the board, while the...