Strengths
Products are available in a wide range of types, which is one of The Coca-Cola Company’s greatest competitive advantages. First, Coca-Cola has over 500 brands spread across 200 businesses, enabling it to have market dominance (Liu, 2022). Second, it is among the most famous brands in the world, which gives it a significant advantage over its rivals due to its brand image and popularity. Third, the Corporation takes great satisfaction in the fact that the Coca-Cola beverage, its main product, has a secret recipe making it difficult for rivals to produce a similar product.
Weaknesses
Health trends are one of the company’s greatest weaknesses as it experiences significant challenges in its attempts to adjust to existing trends. As Liu (2022) explains, soft and sweet beverages are gradually being replaced with healthier options as people become more aware of the poor diet they take and the quantity of sugar they consume. Another health-related flaw relates to the corporation’s inability to improve the quality of its sugar substitute without compromising its renowned flavor.
Opportunities
The Coca-Cola Company has a significant opportunity to grow its market share if it closely observes and appropriately reacts to existing health developments. According to Liu (2022), significant growth would be realized if the company produces a nutritious drink to substitute its sweet drinks. Less competition is another growth opportunity since the company can introduce new products and penetrate the market easily, giving it a competitive advantage over its rivals.
Threats
Despite the company’s dominance in the soft drinks sector, new and healthier options are entering the market. As individuals become more concerned with their health, they are beginning to prefer alternatives such as flavored water, organic beverages, and green juices (Liu, 2022). Despite the company’s stellar marketing tactics and outstanding brand recognition, it frequently receives a poor reputation for being unhealthy.
Recommendations
According to the SWOT analysis of the company, it is concluded that Coca-Cola has a clear market share in the beverage sector. However, it needs to adjust some of its production and marketing techniques for sustained growth in the industry. Diversification is one recommendation that entails producing new products such as snacks and fast food to minimize its dependence on one product line. In addition, Coca-Cola should be more focused on the healthy aspects of its products to attract a wider market and address the growing concerns on human health and wellbeing.
Reference
Liu, S. (2022). Strategic analysis of Coca-Cola Company based on Harvard framework. BCP Business & Management, 17, 16-21.