Date post: | 21-Jan-2018 |
Category: |
Education |
Upload: | ovidijus-jurevicius |
View: | 136 times |
Download: | 14 times |
THE COCA COLA COMPANY SWOT ANALYSIS 2018
SLIDE | 2
ABOUT COCA COLA
Name The Coca Cola Company
Logo
Industries served Beverage (more than 600 brands)
Geographic areas served Worldwide (more than 200 countries)
Headquarters Atlanta, Georgia, United States
Current CEO James Quincey
Revenue (US$) 41.863 billion (2016) 5.5% 44.294 billion (2015)
Profit (US$) 6.527 billion (2016) 11.2% 7.351 billion (2015)
Employees 100,300 (2017)
Main Competitors
PepsiCo Inc., Dr Pepper Snapple Group, Inc., Unilever Group, Mondēlez
International, Inc., Groupe Danone, Nestlé S.A. and many other beverage
companies.
The Coca Cola Company business overview from the company’s financial report:
The Coca-Cola Company is the world’s largest beverage company. We own or license and market more than 600 nonalcoholic beverage brands:
• sparkling beverages
• waters and enhanced waters
• juices and juice drinks
• ready-to-drink teas and coffees
• energy and sports drinks
SLIDE | 3
BUSINESS DESCRIPTION (1/2) “ ”
• We own and market four of the world’s top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite.
• Beverages bearing trademarks owned by or licensed to us account for 1.9 billion of the approximately 59 billion beverage servings of all types consumed worldwide every day.”[1]
SLIDE | 4
BUSINESS DESCRIPTION (2/2) “ ”
SLIDE | 5
STRENGTHS
1. Dominant market share in the beverage industry
S W
O T
The Coca-Cola
Company is the
largest non-alcoholic
beverage company in
the world.
Figure 1. Largest beverage companies in the world in 2016
Rank Name2016 revenue (in US$
billions)Beverage segment
1. Anheuser-Busch InBev 45.517 Alcoholic
2. The Coca-Cola Company 41.900 Non-alcoholic
3. PepsiCo Inc. 30.144 Non-alcoholic
4. Nestlé S.A. 24.534 Non-alcoholic
5. Suntory Holdings Limited 23.660 Alcoholic
6. Heineken N.V. 22.674 Alcoholic
7. Starbucks Corporation 21.316 Non-alcoholic
8. Diageo plc 13.530 Alcoholic
9. Unilever Group 10.905 Non-alcoholic
10. Pernod Ricard S.A. 9.467 Alcoholic
Source: Beverage Industry[2]
SLIDE | 6
STRENGTHS
Being large and having dominant market share has a few
advantages over competitors:
• Economies of scale;
• Market power over suppliers and competitors;
• Power over the buyers;
• Wide audience reach.
S W
O T
The company owns,
distributes and sells
over 600 various non-
alcoholic beverage
brands in over 200
countries.
1. Strong reliance on carbonated soft drinks to generate the majority of the company’s revenue
SLIDE | 7
WEAKNESSES
S W
O T
72%
28%
Sparkling beverages Still beverages
Carbonated soft drinks (CSD) represent
72 percent of the company’s worldwide
volume sales.
That’s a significant weakness, because
the market for CSD has been declining
over the past 10 years.
In 2016, people drank 23.6% less
sparkling beverages than 10 years ago.
1. Expansion of ready-to-drink (RTD) coffee products in the U.S. market
SLIDE | 8
OPPORTUNITIES
S W
O T
In the U.S., on average the
fastest growing liquid beverage
segment between 2013 and
2016 was RTD coffees.
Figure 3. RTD coffee growth compared to the growth of the whole liquid beverage market in the U.S.
Source: Beverage Marketing Corporation[18][19][20][21][22]
Coca Cola could further
promote its Georgia RTD
coffee brand or acquire some
smaller brands to establish
itself as the RTD coffee leader
in the U.S. market.
2012 2013 2014 2015 2016
Ready-to-Drink Coffee 9.5% 6.2% 10.7% 16.5% 11.0%
Whole Beverage Market 1.0% -0.1% 2.2% 2.8% 3.4%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
1. Obesity concerns may reduce demand for some of the company’s products
Obesity concerns are the no.1 threat that is affecting the company:
“There is growing concern among consumers, public health professionals and
government agencies about the health problems associated with obesity… additional
governmental regulations concerning the marketing, labeling, packaging or sale of our
sugar-sweetened beverages; and negative publicity resulting from actual or threatened
legal actions against us or other companies in our industry… could adversely affect our
profitability.”
SLIDE | 9
THREATS
S W
O T
“ ”
1. The Coca-Cola Company (2017). Form 10-K for the Fiscal Year Ended December 31, 2016. Available at: http://www.coca-colacompany.com/investors/investors-info-sec-filings/ Accessed January 20, 2018
2. Beverage Industry (2017). Top 100 Beverage Companies of 2016. Available at: http://www.bevindustry.com/top-100-beverage-companies-2016-chart Accessed January 20, 2018
3. The Coca-Cola Company (2017). All Brands. Available at: https://cms.coca-colacompany.com/brands/all/ Accessed January 20, 2018
4. PepsiCo (2017). Annual Report 2016. Available at: http://www.pepsico.com/docs/album/annual-reports/pepsico-inc-2016-annual-report.pdf?sfvrsn=0 Accessed January 20, 2018
5. Dr Pepper Snapple Group (2017). Form 10-K for the Fiscal Year Ended December 31, 2016. Available at: http://investor.drpeppersnapplegroup.com/sec-filings?cat=1 Accessed January 20, 2018
6. Nestle (2017). Brands A-Z. Available at: http://www.nestle.com/brands/brandssearchlist Accessed January 20, 2018
7. The Coca-Cola Company (2017). Coca-Cola at A Glance: Infographic. Available at: http://www.coca-colacompany.com/our-company/infographic-coca-cola-at-a-glance Accessed January 20, 2018
8. Interbrand (2017). Best Global Brands 2016. Available at: http://interbrand.com/best-brands/best-global-brands/2016/ranking/ Accessed January 20, 2018
9. Forbes (2017). World’s Most Powerful Brands. Available at: https://www.forbes.com/powerful-brands/list Accessed January 20, 2018
10. Interbrand (2001). Best Global Brands 2000. Available at: http://interbrand.com/best-brands/best-global-brands/2000/ranking/ Accessed January 20, 2018
11. Interbrand (2006). Best Global Brands 2005. Available at: http://interbrand.com/best-brands/best-global-brands/2005/ranking/ Accessed January 20, 2018
12. Interbrand (2011). Best Global Brands 2010. Available at: http://interbrand.com/best-brands/best-global-brands/2010/ranking/ Accessed January 20, 2018
13. Interbrand (2016). Best Global Brands 2015. Available at: http://interbrand.com/best-brands/best-global-brands/2015/ranking/ Accessed January 20, 2018
SLIDE | 10
SOURCES (1/3)
14. Harvard T.H. Chan (2016). Soft Drinks and Disease. Available at: https://www.hsph.harvard.edu/nutritionsource/healthy-drinks/soft-drinks-and-disease/ Accessed January 20, 2018
15. Beverage Marketing Corporation (2017). Press Release: Bottled Water Becomes Number-One Beverage in the U.S. Available at: http://www.beveragemarketing.com/news-detail.asp?id=438 Accessed January 20, 2018
16. O’Connor, A (2015). Coca-Cola Funds Scientists Who Shift Blame for Obesity Away From Bad Diets. Available at: https://well.blogs.nytimes.com/2015/08/09/coca-cola-funds-scientists-who-shift-blame-for-obesity-away-from-bad-diets/ Accessed January 20, 2018
17. Gelles, D. (2014). Coke and McDonald’s, Growing Together Since 1955. Available at: http://www.nytimes.com/2014/05/16/business/coke-and-mcdonalds-working-hand-in-hand-since-1955.html Accessed January 20, 2018
18. Beverage Marketing Corporation (2014). Press Release: The U.S. Liquid Refreshment Beverage Market Remained Flat in 2013. Available at:http://www.beveragemarketing.com/news-detail.asp?id=299 Accessed January 20, 2018
19. Beverage Marketing Corporation (2015). Press Release: The U.S. Liquid Refreshment Beverage Marketing Enlarged in 2014, Reports Beverage Marketing Corporation. Available at: http://www.beveragemarketing.com/news-detail.asp?id=335 Accessed January 20, 2018
20. Beverage Marketing Corporation (2016). Press Release: The U.S. Liquid Refreshment Beverage Market Accelerated in 2015, Reports Beverage Marketing Corporation. Available at: http://www.beveragemarketing.com/news-detail.asp?id=382 Accessed January 20, 2018
21. Beverage Marketing Corporation (2017). Press Release: The U.S. Liquid Refreshment Beverage Market Accelerated Again in 2016. Available at: http://www.beveragemarketing.com/news-detail.asp?id=439 Accessed January 20, 2018
22. Beverage Marketing Corporation (2014). Press Release: The U.S. Liquid Refreshment Beverage Market Grew by 1.0% in 2012, Reports BMC. Available at: http://www.beveragemarketing.com/news-detail.asp?id=255 Accessed January 20, 2018
23. Beverage Industry (2017). 2017 State of the Industry: Steady growth in wine, spirits. Available at: http://www.bevindustry.com/articles/90355-state-of-the-industry-steady-growth-in-wine-spirits Accessed January 20, 2018
24. Hayes, A. (2017). US spirits consumption climbs 2.6% in 2016. Available at: https://www.thespiritsbusiness.com/2017/06/us-spirits-consumption-climbs-2-6-in-2016/ Accessed January 20, 2018
25. Business Wire (2017). Global Tequila Market to Witness Growth Through 2021, Owing to the Introduction of New Flavors: Technavio. Available at: http://www.businesswire.com/news/home/20170309005955/en/Global-Tequila-Market-Witness-Growth-2021-Owing Accessed January 20, 2018
SLIDE | 11
SOURCES (2/3)
26. Insider Monkey (2017). 10 Best Selling Tequila Brands in The US. Available at: http://www.insidermonkey.com/blog/10-best-selling-tequila-brands-in-the-us-531701/?singlepage=1 Accessed January 20, 2018
27. Beverage Industry (2017). Strong growth predicted for coconut water, other plant waters. Available at: http://www.bevindustry.com/articles/90346-strong-growth-predicted-for-coconut-water-other-plant-waters Accessed January 20, 2018
28. FoodBev (2017). Global coconut water market forecast for growth of over 25%. Available at: http://www.foodbev.com/news/global-coconut-water-market-forecast-for-growth-of-over-25/ Accessed January 20, 2018
29. The Coca-Cola Company (2016). ZICO Coconut Water Debuts Larger Clear Bottle Design. Available at: http://www.coca-colacompany.com/coca-cola-unbottled/zico-coconut-water-debuts-larger-clear-bottle-design-- Accessed January 20, 2018
30. Strategic Management Insight (2017). PepsiCo SWOT Analysis. Available at: https://www.strategicmanagementinsight.com/swot-analyses/pepsico-swot-analysis.html Accessed January 20, 2018
31. Roesler, N. (2017). Global savory snack market ripe for growth. Available at: http://www.foodbusinessnews.net/articles/news_home/Consumer_Trends/2017/04/Global_savory_snack_market_rip.aspx?ID=%7B8E33588D-569D-442B-A1B3-2B59F1B062D1%7D&cck=1 Accessed January 20, 2018
32. Lee, B. Y. (2017). In Berkeley, Soda Tax Is Doing What It's Supposed To Do. Available at: https://www.forbes.com/sites/brucelee/2017/04/18/in-berkeley-soda-tax-is-doing-what-its-supposed-to-do/#1f771da2cae7 Accessed January 20, 2018
33. American Public Health Association (2016). Impact of the Berkeley Excise Tax on Sugar-Sweetened Beverage Consumption. Available at: http://ajph.aphapublications.org/doi/abs/10.2105/AJPH.2016.303362 Accessed January 20, 2018
34. Kraemer, A. (2017). Coca-Cola And The 'Soda Tax'. Available at: https://seekingalpha.com/article/4082641-coca-cola-soda-tax Accessed January 20, 2018
SLIDE | 12
SOURCES (3/3)
SLIDE | 13
GET THE FULL
PRESENTATION
BUY THE COCA COLA
COMPANY SWOT 2018