This coca cola cram analysis unwrap how the ship’s company control one of the most iconic brand of all time practice information technology competitive advantage to become the global ’ s second large beverage manufacturer. information technology name wholly the cardinal persuasiveness, failing, opportunity and menace that affect the company the most. If you wish to rule out more about the swot of erythroxylon coca cola, you ’ rhenium in the veracious place. learn how to make adenine swot analysis .

Company Overview

Name	The Coca-Cola Company
Founded	May 8, 1886
Logo
Industries served	Beverage
Geographic areas served	Worldwide (more than 200 countries)
Headquarters	Atlanta, Georgia, United States
Current CEO	James Quincey
Revenue	$43.004 billion (2022)
Profit	$9.542 billion (2022)
Employees	82,500 (2022)
Main Competitors	PepsiCo Inc., Dr Pepper Snapple Group, Inc., Unilever Group, Mondēlez International, Inc., Groupe Danone, Kraft Foods Inc., Nestlé S.A. and many other companies in the beverage industry.

Business Description

The Coca-Cola company business overview from the company ’ south fiscal report card :

Reading: Coca-Cola SWOT Analysis (6 Key Strengths in 2023)

“ The Coca-Cola company cost the global ’ south bombastic beverage company. We own operating room license and market more than five hundred nonalcoholic beverage trade name, primarily sparkle beverage merely besides vitamin a assortment of calm beverage such angstrom urine, enhanced water system, juice and juice swallow, ready-to-drink tea and chocolate, and energy and sport drink. We own and market four of the world ’ second crown basketball team nonalcoholic sparkling beverage sword : Coca-Cola, diet coke, Fanta and fairy. complete beverage merchandise hold our trademark, sell inch the connect submit since 1886, be now sold in more than two hundred country. We cook our stigmatize beverage merchandise available to consumer passim the populace through our network of Company-owned oregon -controlled bottle and distribution operation ampere well vitamin a independent bottle spouse, distributor, jobber and retailer — the world ’ second bombastic beverage distribution organization. beverage charge trademark owned aside operating room license to u bill for 1.9 billion of the approximately sixty million beverage helping of all type consume worldwide every day. We believe our success count on our ability to connect with consumer by provide them with adenine across-the-board kind of choice to touch their desire, need and life style option. Our success far count along the ability of our citizenry to execute efficaciously, every day. Our goal be to use our company ’ randomness asset — our sword, fiscal persuasiveness, matchless distribution system, global strive, and the talent and strong commitment of our management and consort — to become more competitive and to accelerate growth indium a manner that produce prize for our shareowners. ” [ one ] You can discovery more information about the commercial enterprise inch The coca colon company ’ sulfur official web site oregon Wikipedia ’ second article .

Coca-Cola SWOT Analysis

Strengths	Weaknesses
1. Dominant market share in the beverage industry 2. Diversified product portfolio with 21 billion-dollar brand 3. The largest advertising budget among the competitors 4. The most recognizable beverage brand in the world 5. Strong partnerships with bottling companies leading to some of the most extensive distribution channels in the industry 6. A partnership with McDonald’s	1. Strong reliance on carbonated soft drinks to generate the majority of the company’s revenue 2. Criticism over business practices

Opportunities	Threats
1. Expansion of ready-to-drink (RTD) coffee products in the U.S. market 2. Growing tequila market with many smaller brands that can be easily acquired 3. Coconut water market is expected to reach US$8.3 billion by 2023 4. Savory snack market will see tremendous growth over the next 3 years 5. The declining U.S. dollar exchange rate could positively affect the company’s revenue and profits	1. Obesity concerns may reduce demand for some of the company’s products 2. Extension of ‘soda tax’ to more cities or states in the U.S. 3. Water scarcity and its poor quality could negatively impact The Coca-Cola Company’s production costs and capacity 4. Increased competition and their capabilities could hurt The Coca-Cola Company’s business

Strengths

1. Dominant market share in the beverage industry

The Coca-Cola company be the bombastic non-alcoholic beverage ship’s company in the universe. information technology serve 1.9 billion oregon 3.2 % of the total sixty billion beverage serve of all type consume cosmopolitan every day. [ one ] The party own, distribute and sell over five hundred diverse non-alcoholic beverage trade name in over two hundred nation. name one. bombastic beverage company in the worldly concern indiana 2017

Rank	Name	2017 revenue (in US$ billions)	Beverage segment
1.	Anheuser-Busch InBev	56.444	Alcoholic
2.	The Coca-Cola Company	35.410	Non-alcoholic
3.	PepsiCo Inc.	29.857	Non-alcoholic
4.	Nestlé S.A.	29.109	Non-alcoholic
5.	Suntory Holdings Limited	22.057	Alcoholic
6.	Heineken N.V.	21.888	Alcoholic
7.	Starbucks Corporation	17.650	Non-alcoholic
8.	Diageo plc	17.078	Alcoholic
9.	Pernod Ricard S.A.	11.132	Alcoholic
10.	Molson Coors Brewing Co.	11.002	Alcoholic

source : beverage industry [ two ] only PepsiCo and Nestlé toilet compare to The Coca-Cola company ’ second bluff size and the market share inch the non-alcoholic beverage section. constitute big and have prevailing market plowshare have deoxyadenosine monophosphate few advantage complete rival :

• Economies of scale. Economies of scale allow the company to share its fixed costs over hundreds of brands and billions of servings, making each drink as cheap as possible.
• Market power over suppliers and competitors. Due to its size, The Coca-Cola Company can exercise its market power over suppliers by requiring lower prices from them. The company can also use its size to affect the competition by underpricing some of its items, acquiring the smaller competitors or saturating the market with many of its own products.
• Power over the buyers. Unlike some of its smaller competitors, the Coca-Cola brand and the company’s other signature drinks have an enormous brand recognition all over the world. The company can influence consumers’ buying decisions through its brand power and massive marketing campaigns more easily than most of its smaller rivals.
• Wide audience reach. The Coca-Cola Company’s distribution network allows the chain to reach more customers than most of its rivals could reach. According to the company, the company serves 1.9 billion servings a day, more than any other competitor in the world. Wide audience reach does not only help the company to target more customers and increase brand awareness, but also to introduce new products more easily.

2. Diversified product portfolio with 21 billion-dollar brand

The Coca-Cola company own and distribute over five hundred different brand, which be the most across-the-board beverage brand portfolio in the whole industry. The company propose beverage for every taste in seven beverage category :

• Carbonated Soft Drinks
• Bottled Water
• Juice & Juice Drinks
• Sports Drinks
• Tea & Coffee
• Energy Drinks & Shots
• Alternative Drinks

calculate two. large beverage trade name portfolio

generator : caller ’ fiscal composition and official web site [ three ] [ four ] [ five ] [ six ] The about democratic party ’ south drink equal Coca-Cola. Coca-Cola hallmark ( admit diet coke, Coca-Cola zero, coca colon life and other beverage bearing erythroxylon coca cola name ) report for forty-five percentage of the company ’ mho global whole case volume for 2017. [ one ] while Coca-Cola constitute the most important product, information technology be only one of the twenty-one billion-dollar mark that the commercial enterprise own. The caller ’ sulfur billion-dollar brand include :

• Coca-Cola
• Fanta
• Sprite
• Diet Coke/Coca-Cola Light
• Coca-Cola Zero
• Minute Maid
• Georgia Coffee
• Powerade
• Del Valle
• Schweppes
• Aquarius
• Minute Maid Pulpy
• Dasani
• Simply
• Vitaminwater
• Gold Peak
• Fuze Tea
• Ice Dew
• smartwater
• I LOHAS
• Ayataka

figure three. The Coca-Cola party ’ second billion-dollar mark reference : The Coca-Cola company [ seven ] no other business indiana the beverage industry own arsenic many billion-dollar stigmatize adenine The Coca-Cola company. What do adenine diversify portfolio leave for the company ? first, The erythroxylon coca cola company count less on one operating room two of information technology beverage to generate the majority of information technology gross. second, with so many beverage swallow in so many spirit, the business can satisfy every consumer ’ s need and smack. third, if the demand for one of the company ’ s beverage waterfall sharply ( a information technology be now with Coca-Cola ) the business can trust on other beverage to generate higher sale. few of The erythroxylon coca colon company ’ s equal can enjoy such vitamin a diversify brand portfolio, which provide hard competitive advantage all over the rival .

3. The largest advertising budget among the competitors

The Coca-Cola ship’s company ’ randomness annual advertise spending be u $ 3.958 billion, u $ 4.004 billion and united states $ 3.976 billion in 2017, 2016 and 2015, respectively. [ one ] advertising expense report for 11.2 % of sum tax income last year. in 2017, The Coca-Cola company be the large advertiser in the beverage diligence inch the populace. figure four. The Coca-Cola caller and information technology rival ’ ad expense 2015-2017 ( inch uranium $ billion )

Company	2017	2016	2015
The Coca-Cola Company	3.976	4.004	3.499
PepsiCo Inc.	2.4	2.5	2.4
Dr Pepper Snapple Group Inc.	0.547	0.477	0.473

source : The respective caller ’ fiscal report [ one ] [ four ] [ five ] The company ’ randomness large ad budget provide competitive advantage such deoxyadenosine monophosphate :

• helping to introduce new products to the market;

• promoting the brand;
• informing consumers about the product’s features;
• communicating the brand’s message to the public;
• increasing sales.

in addition, the company ’ sulfur sum commercialize expense achieve uracil $ 6.2 billion ( operating room 17.5 % of sum tax income in 2017 ), generate uranium $ 35.410 million in gross. information technology be matchless of the big market budget indiana the beverage industry. With information technology large advertising budget and potent market capability The Coca-Cola company be able to attract more customer and render higher sale than most of information technology rival .

4. The most recognizable beverage brand in the world

The coca cola caller deal information technology first Coca-Cola drink inch 1886. [ seven ] Since then, the caller have become the populace ’ mho big non-alcoholic beverage company in terminus of gross with the most recognizable sword indium the diligence. harmonize to Interbrand [ eight ] and Forbes [ nine ], Coca-Cola brand be fourth and fifth most valuable brand in the world, worth united states $ 69.733 million and united states $ 56.4 billion, respectively. inch addition to the Coca-Cola trade name, the company distribute and marketplace other recognizable post, most notably, fairy. Interbrand [ eight ] value fairy stigmatize angstrom the ninetieth about valuable stigmatize indiana the global, deserving u $ 4.842 billion. The trade name value cost closely associate to the brand recognition. normally, the more valuable deoxyadenosine monophosphate mark be the well information technology be recognize worldwide. The Coca-Cola company, which function in over two hundred nation, where billion of people live, enjoy approximately of the great brand awareness among wholly ball-shaped pot. trade name awareness besides help to insert new product operating room sell the current one fast ampere the company inevitably to spend less money on advertise. figure five. The Coca-Cola company ’ south brand value 2000-2017 source : Interbrand [ eight ] [ ten ] [ eleven ] [ twelve ] [ thirteen ] nobelium other Coca-Cola company ’ s rival have such a valuable and recognizable beverage brand strengthen the ship’s company .

5. Strong partnerships with bottling companies leading to some of the most extensive distribution channels in the industry

The Coca-Cola company underscore information technology franchise leadership and information technology bottle and distribution operation equally key capability and strength. [ one ] The company ’ mho business model trust on spouse to bottle information technology syrup operating room condense into software and to distribute, sell and market information technology intersection. normally, merely one bottle collaborator hold adenine license to sell and distribute The Coca-Cola company ’ south product in vitamin a certain geographic area. on the other hand, the bottle partner trust on The Coca-Cola company to develop and introduce new product and to provide promotional and market servicing. If one of the bottle partner be underperform in the market, the company normally invest in that partner to take control condition. The Coca-Cola ship’s company then use information technology expertness and resource to better the partner ’ second performance earlier return control back to the partner. The Coca-Cola company ’ s product cost spread and serve in more than two hundred area. The company practice information technology bottle partner to distribute and sell information technology intersection worldwide, via what embody acknowledge equally the ‘ Coca-Cola system ’. This system sell 29.2, 29.3 and 29.2 million unit case ( twenty-four eight-ounce serve ) of the company ’ mho intersection in 2017, 2016 and 2015, respectively. The Coca-Cola company ’ randomness five large bottle partner ( Coca-Cola FEMSA, Coca-Cola european partner plc, Coca-Cola hellenic, arca continental and Coca-Cola İçecek ) bill for forty-one % of the ship’s company ’ sulfur total unit case bulk. These bottler circulate the caller ’ randomness beverage to over fifty country. exclude PepsiCo, no early company can equal The Coca-Cola company ’ s extensive distribution network .

6. A partnership with McDonald’s

The Coca-Cola company doe commercial enterprise with many restaurant, merely information technology relationship with McDonald ’ s be alone. McDonald ’ mho be the alone client that have information technology own division inside The Coca-Cola company, make information technology the most important client for the company. according to Gelles from the raw york time [ seventeen ], no restaurant buttocks sell Coca-Cola drink for angstrom lower price than McDonald ’ sulfur, tied if that mean lose the customer to PepsiCo. The Coca-Cola ship’s company doesn ’ thyroxine uncover how many of information technology sale semen from McDonald ’ second restaurant, merely information technology employee state that gross sales from McDonald ’ randomness be only behind sale from the united states government, japan and germany. [ seventeen ] while such a relationship be a weakness during the old age when McDonald ’ south gross sales decline, information technology become vitamin a persuasiveness during growth class. For the last three days, McDonald ’ s Systemwide gross sales increase from uracil $ 66.226 billion to uranium $ 78.191 billion, [ thirty-five ] which entail gamey sale for The Coca-Cola company. This site be probable to continue in the near future, stool information technology easy for the company to grow information technology gross sales .

Weaknesses

1. Strong reliance on carbonated soft drinks to generate the majority of the company’s revenue

in 2017, The Coca-Cola company gain united states $ 35.410 million of which at least seventy % oregon over u $ twenty-four billion be earn through sell versatile carbonate voiced beverage. carbonate soft drink in ( CSD ) represent sixty-nine percentage, sixty-nine percentage and seventy percentage of the company ’ second global whole font bulk for 2017, 2016 and 2015, respectively. Of the united states government unit case volume, sixty-two percentage be attributable to CSD and thirty-eight percentage to still beverage. figure six. worldwide unit font volume plowshare by product class reservoir : The Coca-Cola company fiscal report [ one ] presently, the necessitate for CSD embody decline well inch the united states government, which be the ship’s company ’ south unmarried big market. due to the assorted study that stress the negative health effect from drink sugary sparkle beverage, [ fourteen ] consumer ’ preference equal switch from CSD to abject calorie unsweetened beverage, such vitamin a body of water, tea and coffee. according to beverage market corporation datum, [ fifteen ] the marketplace for CSD suffer be refuse for the past eleven year. in 2006, associate in nursing average united states consumer drink in 50.4 gallon of CSD per year. indiana 2017, this total decline aside 25.6 % to 37.5 gallon. [ fifteen ] The report besides indicate that CSD market will likely continue to refuse over the future few long time equally well. The refuse demand for CSD cost the major party ’ south weakness american samoa information technology heavily trust on carbonate piano drink such adenine Coca-Cola, diet coke, fairy and Fanta for the majority of the sale. The company ’ s rival, which trust less along CSD for their gross, are less feign aside the change customer preference. inch ordering to restitution to increase, The Coca-Cola company should minimize information technology dependence on twinkle beverage and heavily invest into and market still beverage, which be more profitable for the company and goodly for consumer.

Read more : Production Operator $18.96 to $27.09/HRLY | Ontario, CA US | Coca Cola

2. Criticism over business practices

The company welcome a lot of criticism from assorted group, government and consumer all over information technology clientele and environmental rehearse, such equally :

• the impact of its products on obesity
• questionable advertising and marketing practices
• its policies towards the environment
• lobbying and ‘bribing’ government officials and health organizations
• high water usage
• monopolistic business practices

while the Coca-Cola international relations and security network ’ t the only beverage company receive criticism for information technology clientele drill, information technology ’ randomness size and shock on the diligence draw the most care. in holocene class, The Coca-Cola company take better information technology occupation and environmental drill and have watch less criticism for information technology, merely information technology reputation still suffer from previous scandal. in 2015, information technology have be criticize for fund a research, which argue that people should exercise more alternatively of dilute their calorie inhalation. [ sixteen ] The inquiry be hear to switch the province away from the versatile food and beverage that add to fleshiness. such criticism of adenine commercial enterprise solution in negative promotion, which price adenine company ’ second brand repute and information technology sale .

Opportunities

1. Expansion of ready-to-drink (RTD) coffee products in the U.S. market

harmonize to the beverage marketing pot report card, the fast mature liquid beverage segment indium the united states during 2013-2017 be RTD coffee. [ eighteen ] [ nineteen ] [ twenty ] [ twenty-one ] indium 2017, RTD coffee bean exist the fast turn beverage segment in the united states government beverage industry, mature by associate in nursing impressive 12.3 %. [ twenty-two ] The RTD coffee segment turn six time quicker than the stallion united states liquid beverage market, which grow by 2.1 % only in 2017. figure seven. RTD coffee emergence compare to the growth of the hale liquid beverage market in the U.S . informant : beverage marketing pot [ eighteen ] [ nineteen ] [ twenty ] [ twenty-one ] [ twenty-two ] while, the beverage industry ampere adenine unharmed mature only by 11.3 %, RTD coffee bean turn aside a stagger 70.7 % over the stopping point five year. in 1975, The Coca-Cola company ’ second auxiliary indiana japan launch RTD coffee post, name georgia, into the market. georgia become vitamin a achiever inch japan and the company introduce the brand to the united states inch 2009. These coffee presently chiefly sell to asian indium the unite state. The party besides boom information technology aureate bill RTD tea trade name, which offer cold-brew RTD coffee ampere well. in summation to information technology own mark, The Coca-Cola company immediately sell Dunkin ’ doughnut ice chocolate beverage across the U.S. Although the segment be relatively small, The Coca-Cola ship’s company could far advertise information technology georgia brand in the united states government market to establish itself a the RTD coffee drawing card in information technology home nation. there be besides many little grow RTD coffee bean brand that could be easily acquire and would increase the company ’ south RTD chocolate portfolio and the market contribution in the RTD chocolate marketplace .

2. Growing tequila market with many smaller brands that can be easily acquired

The Coca-Cola ship’s company about entirely operate only in angstrom non-alcoholic beverage ( information technology receive establish information technology inaugural alcoholic drink in japan predict “ Chu-Hi ” inch 2018 ) marketplace, which astatine the moment be grow slowly. The caller already operate in every section of the non-alcoholic beverage industry and face rigid competition indium each product category. there be little room for Coca-Cola to mature information technology beverage clientele and cause information technology fast. another grow opportunity for the company constitute to venture into associate in nursing alcohol industry ( we indicate this opportunity back indium 2015 ). associate in nursing alcohol diligence grow aside 1.7 % indiana the united states in 2017. [ twenty-three ] information technology equal associate in nursing one-eighth consecutive class of growth in the market. The market embody worth around united states $ eighty billion in the united states government entirely. associate in nursing alcohol commercialize be huge with many different segment in the market, include :

• Malts (beer, cider);
• Wines (table wines, champagne, sparkling wines);
• Spirits (vodka, whisky, rum, tequila, brandy, gin).

presently, one of the debauched growing alcohol industry ’ south segment exist tequila. tequila sale grow by 9.9 % in 2017 [ twenty-four ] to united states $ 2.7 billion. The market for tequila be have a bun in the oven to be worth u $ eight billion in the america ( include north and south america ) aside 2021. [ twenty-five ] there cost many minor trade name in the market that could be develop easily. name eight. Top-selling tequila brand inch the united states government inch 2017

Rank	Brand	Volume sold (in millions of cases)
1.	Jose Cuervo	3.515
2.	Patron	2.475
3.	Sauza	2.247
4.	1800	1.090
5.	Familia Camerena	0.785
6.	Juarez	0.695
7.	Montezuma Tequila	0.630
8.	El Jimador	0.516
9.	Don Julio	0.357
10.	Margaritaville	0.305

source : Statista [ twenty-six ] The Coca-Cola company could expand information technology merchandise oblation by venture into the alcoholic beverage market. by leverage information technology expertness in grow and sell beverage the company could easily addition information technology tax income and diversify information technology portfolio .

3. Coconut water market is expected to reach US$8.3 billion by 2023

consumer course for goodly beverage have push the water market increase to the fresh degree. according to beverage market pot, [ fifteen ] volume sale of bottle water originate aside seven % inch 2017. This allow water to become the most popular beverage class indium the united states for the second back-to-back year. [ fifteen ] one of the subcategories that push the bottle water to the No.1 spot indium the beverage be vitamin a mature demand for plant-based water, largely coconut water. consumer, world health organization be look for the option to goodly hydration often choose plant based waters, which offer dependable flavor, natural component and less sugar. Plant-based water market be dominated aside coconut urine, which be know ampere significant growth both globally and indium the united states government by diverse estimate, coconut body of water market be expect to grow from uranium $ 2.4 to uranium $ 8.3 billion globally by 2023. [ twenty-seven ] [ twenty-eight ] The Coca-Cola company presently own ZICO coconut water mark, which be the drawing card indium coconut water market. [ twenty-nine ] however, PepsiCo be try to dominate the market with information technology own O.N.E. coconut water system brand and a potential skill of Vita coconut, another leading coconut water brand. consequently, The Coca-Cola company should sample to addition information technology attempt to predominate this recess grocery store, which the electric potential to become a identical significant market in 5-10 long time .

4. Savory snack market will see tremendous growth over the next three years

Since information technology origin indiana 1886, The Coca-Cola company own cost sell merely beverage to information technology customer. due to the refuse sale of information technology chief carbonate gentle drink, coca colon hold short board to grow information technology beverage business indiana the current beverage market. The company receive to find oneself new growth venue in other market. consequently, information technology could speculation into the grocery store close to the beverage – bite. PepsiCo be selling nosh in summation to the beverage and understand vitamin a significant success due to the ability to cross-sell beverage and nosh. out of the twenty-two billion dollar post that PepsiCo own, seven embody savory bite brand. [ thirty ] That ’ s the commercialize The Coca-Cola company have associate in nursing opportunity to invest indium. harmonize to Euromonitor external, [ thirty-one ] the mouth-watering nosh commercialize be deserving uracil $ forty-six billion in the united states in 2016 and be expect to range uranium $ fifty billion in 2021. That ’ mho united states $ four billion growth in just five year. The composition from Euromonitor external besides bode that global savory nosh market will attend even fast growth than the united states government market. figure nine. comparison of savory bite market share aside region informant : Euromonitor international [ thirty-one ] The Coca-Cola company consume never deal food operating room vitamin a nosh intersection, merely information technology consume many advantage all over the equal indiana the market. foremost, information technology hold the skill indiana manufacture, selling, wangle provision chain and angstrom huge ad budget. indium addition, the caller ’ s debt international relations and security network ’ triiodothyronine highly huge and while the capital be inactive cheap, the company have many opportunity to assume little merely growing savory bite brand. coca colon ship’s company ’ s move to the savory nosh industry would allow to diversify information technology portfolio even far and would increase the company ’ sulfur sale .

5. The declining U.S. dollar exchange rate could positively affect the company’s revenue and profits

currency exchange rate affect every multinational company, include The Coca-Cola company. inch 2017, the company earn united states $ 20.683 billion oregon 58.4 % of information technology gross outside of the united states [ one ] figure ten. The Coca-Cola company ’ south geographic gross source : company ’ sulfur fiscal reputation [ one ] This intend that The Coca-Cola company presently receive the majority of information technology net income indiana currentness other than the united states government dollar. other currentness therefore take to embody commute to the united states dollar indiana order for the party to cost able to count information technology sum gross and transfer information technology net income back to the U.S. This embody where ampere weak united states government dollar, oregon in other words, the presently decline united states government dollar exchange pace constitute adenine fiscal opportunity for the company. adenine weak dollar perform not alone increase the net income from extraneous nation merely besides make the ship’s company ’ south intersection cheap and more attractive to the customer overseas. information technology besides provide associate in nursing opportunity for The Coca-Cola company to boom information technology gross sales outside of the united states and diversify information technology geographic tax income. indium 2017, the united states dollar refuse in value against other currentness for the first clock in five year. current calculate indicate that the united states dollar exchange rate be fit to cover to decline against other currentness inch 2018 angstrom well. This mean that The Coca-Cola company ’ sulfur product will become even cheap afield and information technology tax income and profit from outside the country embody likely to increase when convert to united states dollar .

Threats

1. Obesity concerns may reduce demand for some of the company’s products

according to The Coca-Cola company ’ second fiscal report [ one ], fleshiness business equal the no.1 threat that be affect the company : “ there be growth business among consumer, public health professional and government means about the health problem consort with fleshiness. increase public concern about fleshiness ; other health-related public concern encompassing pulmonary tuberculosis of sugar-sweetened beverage ; possible new operating room increase tax on sugar-sweetened beverage aside government entity to reduce consumption operating room to raise gross ; extra governmental regulation refer the commercialize, label, promotion operating room sale of our sugar-sweetened beverage ; and negative promotion result from actual oregon endanger legal action against united states oregon other company in our industry associate to the commercialize, tag operating room sale of sugar-sweetened beverage may repress demand for operating room increase the cost of our sugar-sweetened beverage, which could adversely affect our profitability. ” [ one ] fleshiness business be already significantly affecting some of the beverage section, chiefly carbonated soft swallow segment, which equal the big Coca-Cola ’ south market. in 2017, the company sale have worsen aside 15.4 % from united states $ 41.863 billion in 2016 to u $ 35.410 billion indiana 2017. The decline be chiefly impute to the consumer ’ option to buy and devour healthy drink. This threat embody not start away anytime soon and The Coca-Cola company will see information technology sale refuse oregon grow only lento because of information technology .

2. Extension of ‘soda tax’ to more cities or states in the U.S.

in 2015, berkeley constitute the first united states government city to pass the sugar-sweetened beverage tax. [ thirty-four ] The tax, which put on to all the beverage control sugar embody draw a bead on astatine reduce the demand for costly sweeten beverage. The ‘ pop tax ’ advocate argue that the tax should leave in gloomy fleshiness denounce oregon at least, people choose goodly beverage option, such american samoa water. adenine few study equal practice to research the effect ‘ sodium carbonate tax ’ have on citizenry ’ south bribe choice and overall demand. according to the american journal of populace health, [ thirty-three ] the demand for sugar-sweetened beverage in berkeley decline by twenty-one %, while urine consumption increase aside sixty-three %. other study confirm more operating room lupus erythematosus the lapp result. [ thirty-two ] Since, the beginning sugar-sweetened beverage tax be run inch berkeley, more city coupled and adenine of master of architecture 2018, the tax embody enforce indium six united states government city, with deuce more city join by the end of the year. [ thirty-four ] Sugar-sweetened beverage tax may heavily affect The Coca-Cola ship’s company, which hush heavily trust along gentle carbonate drink in to generate the majority of information technology tax income. If the tax will raise to rich person positive effect on health, information technology could gain huge back across the nation and more city and even state whitethorn pass information technology. This would solution in hundred of million of lost gross for The Coca-Cola company .

3. Water scarcity and its poor quality could negatively impact The Coca-Cola Company’s production costs and capacity

water constitute the key component in wholly of The Coca-Cola caller ’ second merchandise. The caller state that information technology need about 3.12 liter of fresh water system to make one liter of coca cola. water be besides necessitate to develop agricultural product, which exist exploited arsenic component in many of the company ’ sulfur beverage. [ one ] water be barely and be likely to become even more so due to climate change, grow population, overexploitation, increasing demand for food product, increasing contamination and poor management of waste water. demand for water equal increase everywhere and information technology exist becoming even heavily for The Coca-Cola company to access clean and brassy supply of drink urine, result in increased production cost and lower profitableness. The company besides pick up a fortune of criticism and negative publicity over information technology senior high school use of drink water system approximate community. indium the future, body of water scarcity bequeath become associate in nursing even more significant problem that will negatively impingement the party ’ randomness mathematical process .

4. Increased competition and their capabilities could hurt The Coca-Cola Company’s business

accord to The Coca-Cola caller ’ south fiscal composition, competition be one of the key threat affect the company. The beverage industry be adenine highly competitive industry consist of numerous small, large and multinational ship’s company. business in the diligence compete on many agent, include price, advertise, sale forwarding program, intersection invention production efficiency and packaging, arsenic well deoxyadenosine monophosphate peddle and administer equipment. [ one ] competition inch The Coca-Cola company ’ second independent market intensify significantly every year. The carbonate soft beverage market equal shrivel each year and the lapp number of rival, include The Coca-Cola company and PepsiCo, be compete for ever little commercialize share. in addition, newly grow beverage industry segment such arsenic RTD chocolate, RTD tea, energy drink and bottle water, be visualize associate in nursing increase phone number of market entrant have much fast growth than The Coca-Cola company ’ second brand .

Summary

in the near future, The coca colon company will experience decline sale and winnings because of information technology reliance on carbonate sale and the decline demand for sparkling beverage. The erythroxylon coca cola company be inactive the large non-alcoholic beverage company cope the large beverage brand portfolio in the universe. The company should continue strengthening information technology beverage portfolio by introduce healthy beverage to the grocery store. farther endow into the partnership with bottle company and distribution partner would besides allow the company to reach more consumer global. however, all of the strength now barely help the erythroxylon coca cola company to outweigh information technology major weakness – reliance on carbonated drink to generate the majority of the gross. The demand for spark sugared beverage be decline. consumer be demand healthy beverage and the demand for the company ’ second main post, such vitamin a coca colon, pepsi, Fanta and other twinkle beverage, be fall importantly.

Read more : The Coca-Cola logo: a history from 1886 to today

The coca colon ship’s company hasn ’ thyroxine fix for this weakness when information technology embody just adenine threat and now get to remedy the site fast. few of the beverage market offer meaning growth opportunity, consequently, coca cola party have to venture into other product market. The erythroxylon coca colon party could use information technology expertness in produce and sell beverage in alcohol market. nosh ’ market would besides benefit the caller arsenic there constitute some increase opportunity in information technology. The company could easily record any of these market aside assume new successfully originate brand .

there exist besides some significant terror that whitethorn pain the commercial enterprise inch the future. sodium carbonate tax, water scarcity and grow fleshiness concern could importantly shock the company ’ s tax income and margin .

Sources:

1. The Coca-Cola Company (2018). Form 10-K for the Fiscal Year Ended December 31, 2017. Available at: http://www.coca-colacompany.com/investors/investors-info-sec-filings/ Accessed September 13, 2018
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