II. COCA-COLA SWOT ANALYSIS
Strengths
Coca-Cola’s greatest strength is its brand name. People are willing to buy Coke regardless of their choices in
blind taste tests, simply because of its reputation. Coca-Cola is considered to be the world’s number one
soft drinks company and is the world’s most recognized trademark. This strong reputation helps the
company when competing with others in the soft drink market.
Recently, Douglas Daft became the company’s CEO, which has added great strength to the company. Daft
started out as a sales person and was a marketer overseeing operations in the Middle East and Asia. This is
an excellent advantage for the company because Daft’s experience within Coca-Cola will help guide the
company’s future.
Weaknesses
Past CEO, Douglas Ivester created a huge weakness within Coca-Cola. He took over in 1997 when CEO
Robert Goizueta passed away. Unfortunately, Ivester was not experienced nor well prepared for this
position. Ivester had experience as an accountant and little or no experience as a marketer. In a major
marketing company such a Coca-Cola, having a leader that understands marketing concepts is required in
order to produce optimal results.
During Ivester’s term as CEO, the company’s strong reputation has suffered. During this time, PepsiCo took
action and began realizing Coke’s strengths. PepsiCo started adopting Coke’s advertising tactics and
developed bottling operations similar to Coke. Coca-Cola has been very exposed during these trying times.
Opportunities
Many “alternative” drink companies are open to the possibility of making a deal with a major soft drink
maker like Coke. Such companies include Nantucket Nectars and Arizona Beverage Co. Should Coke make a
deal with one of these companies, Coke will be exposed to a rapid growth market that could help achieve
long-term growth targets.
Coke also has great opportunities awaiting it in the global industry. As the company continues to grow in
the global market, the company’s sustainable profit continues to grow. This strength in the global market
has led to relationships between other companies to help Coke grow. Thunderbird Magazine is just one
example of their international success. Their partnership was formed to help protect each other in a global
economic crisis in which both companies would be equally hurt. Pepsi has very little invested in the global
market compared to Coke, therefore, less protection is offered to Pepsi. Coke has more protection for
gaining a stronger hold in the global market.