SWOT Analysis of the Coca-Cola Company

Coca-Cola is a global company that has many privileges and many threats to its business in the industry and environment that it operates. The company has strengths such as having a dominant market share which enables it to enjoy advantages such as economies of scale. Consumer loyalty helps maintain its market share despite the growth in competition over the years. The company also has a strong brand image that makes consumers choose its products over competitors. In weaknesses, the company  lacks proper diversification of products and its main focus is on soft drink. The company relies on water for its products, its water management practices have been in question severally over the years. With the resource diminishing the company ought to think of better strategies for production. It is a multinational company and is therefore prone to currency fluctuation risks. The company has also not invested heavily in the health drink market which is a weakness as it cannot meet the needs of that market segment. Coca-Cola has the opportunity to diversify its product portfolio and create new products like competitors. It also has the opportunity to venture into the healthier drink market which will meet the demand for changing preferences of its loyal consumers. The increasing demand for bottled water is an opportunity as the company can produce more of its bottled water (The Coca-Cola Company, 2020). The main threats the company faces include competition from companies like PepsiCo. PepsiCo has products similar to Coca-Cola but has diversified its business into the snacks market. The changing preferences of consumers are also a threat to the company. As people become more health conscious the demand for the company’s products declines. The increasing costs of production in different countries affects the companies profitability.

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