I’m working on a business Discussion and need guidance to help me study.
2 125 words each classmate discussion responses.
One: A SWOT analysis is a compilation of your company’s strengths, weaknesses, opportunities and threats. The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in making a business decision” (Schooley, 2019). I apologize for not putting the information into a table format, but I assume that listing out the information for each part of the SWOT below would be better than nothing at all. With the SWOT analysis of Coke below, my first initial thought was their strengths. I am an optimistic person who is always looking at the positive side of things and the network of logistics that coke has is very impressive and most definitely a strength that stood out to me.
Coca-Cola SWOT Analysis:
Strengths: Coca-Cola has a strong distribution network. Throughout the years they have been in business, Coke has built a very reliable network of distributors that have been able to supply their products to the market. Another strength Coke has is its reliable suppliers. This allows for Coke to obtain the raw materials that are necessary for the company to overcome many obstacles during the supply chain process. Lastly, Coke has shown an excellent performance in new markets. They have built a great strategy when it comes to the emergence of new products into the market and making them a success among consumers.
Weaknesses: Health concerns are a major weakness for the company. Many of their drinks are high in sugar and there is a large stereotype with Coke that their products are not healthy. The other weakness they have is product diversity. Coke as compared to their rival Pepsi is not as well diversified in their portfolio of products that they sell.
Opportunities: New trends in consumer behavior. This provides the company a great opportunity to see how the market trends are leaning and allows for new growth and expansion if they capitalize correctly with them. Environmental policies can help with the opportunity of going greener with their products. Coke uses a large amount of plastic bottles that are not environmentally friendly and have an opportunity to clean that up. Using the Internet to gain consumers. Coke can use the Internet in a number of ways to gain more consumers whether its by social media awareness or by direct to consumer through the Internet.
Threats: Lawsuits from places around the world. With being a company that is placed all around the world, they are bound to run into regulations from countries or places that might have different laws and standards that are constantly changing. They must stay up to par with them in order to stay out of legal trouble. The ever-changing consumer buying landscape is always evolving. Trends for what products are selling compared to what is not is constantly changing with consumers and the company must stay ahead of the curve on what consumers are buying and consuming. Lastly, the shortage of skilled labor can be a threat to Coke as they are constantly looking for employees in the global market. The job market is very competitive and they must stay on top of hiring quality people.
“A BCG matrix helps businesses analyze both the current and future competitive landscape of their industry, and then plan accordingly. Created by the Boston Consulting Group, the BCG matrix – also known as the Boston or growth share matrix – provides a strategy for analyzing products according to growth and relative market share. The BCG model has been used since 1968 to help companies gain insights on what products best help them capitalize on market share growth opportunities and give them a competitive advantage” (Martin, 2020).
Stars: Dasini, the bottled water for Coca-Cola has a very large global market share in the bottle water industry.
Question Marks: Coffee products in the Coca-Cola portfolio have been a question mark, as they have not been as highly regarded as other popular Coke Products.
Cash Cows: Coca-Cola is the cash cow for the brand as it is the most popular product the company as it is one of the most well known brands and logos in the world.
Dogs: Minute Maid is the dog because of the amount of money the invest into this part of the company but are considered cash traps as they invest a large amount of money into it but do not receive it in return.
Coca Cola (2020) retrieved from https://www.coca-colacompany.com/home
David, F., David, M. E., & David, F. (2019). Strategic management : a competitive advantage approach, concepts and cases (17th ed.). Upper Saddle River: Pearson.
Martin, M. (2020, June 16). What is a bcg matrix? Retrieved April 09, 2021, from https://www.businessnewsdaily.com/5693-bcg-matrix.html#:~:text=A%20commonly%20used%20BCG%20matrix,plenty%20of%20room%20to%20grow.
Schooley, S. (2019, June 23). SWOT analysis: Definition and examples. Retrieved April 09, 2021, from https://www.businessnewsdaily.com/4245-swot-analys…
Two: A SWOT and BCG are strategic tools used to analyze the current organizational market position. With the matrices’ results, an organization can make recommendations on improving and achieving more outstanding achievements. By analyzing the market position, a brand improves its vibrant market area by understanding the internal and external environment regarding competitors, customers, and social shifts.
A SWOT analysis is a four-component framework: strengths, weaknesses, opportunities, and threats that are used to evaluate a company’s competitive position and to develop strategic planning by assessing internal and external factors (Grant, 2021). There are four sets of strategies defined within a SWOT analysis: SO, WO, ST, and WT. SO takes strengths to take advantage of opportunities. WO aims at improving weaknesses by taking advantage of opportunities. ST uses strengths to avoid or limit the impact of threats. Lastly, WT aims at reducing weaknesses by avoiding threats with a defensive tactic (David, et al, 2019, p.167).
Coca-Cola SWOT Matrix
- Global Reach
- Industry/ Market Leadership
- Brand Reputation
- Customer Loyalty
- Inventory reduced by 3.95 in the fourth quarter
- Competition with PepsiCo
- Health Concerns
4.Lack of brand diversification
- Sparkling Water Popularity
- Growth of business in developing nations
- Increase demand in-online food delivery.
- Popularity of loyalty programs
- Expand sparkling water beverage line (S2, O1).
- Add the option for individual consumer sales through the website (S4, O3).
- Expand services to Burundi and Burkina Faso, top developing nations (S1, O2).
- Switch to honey to limit 37 grams of sugar per can (W3, O1).
- Add a loyalty program featuring auto-delivery (W4, O3).
- Growing rate of competitors in the beverage industry
- Limited availability of aluminum due to COVID
- Water usage controversy (Parker, 2019)
- Packaging dilemma regarding green footprint.
- Source aluminum from global partners (S1, T2).
- Improve water security operations indefinitely (S3, T3).
- Expand to offer vending food services that are healthier choices (W3, T1).
2.Switch aluminum cans to Cartocan, the alternative to aluminum to reduce carbon footprint (W4, T4).
The Boston Consulting Group Matrix (BCG) uses graphical representation of a company’s products and services to help an organization determine what it should, keep, sell or invest more in (Hayes, 2020). The matrix is a long-term growth share tool. The matrix displays differences between market share position (x-axis) and industry growth rate (y-axis).
BCG Matrix Coca-Cola:
Gold Peak Tea
Based on the SWOT and BCG Matrix summaries, Coca-Cola should expand its product horizon to appeal to the shift in consumer drinking habits. The brand should take advantage of sparkling water’s market opportunities, developing nations and offer direct sales through their website. By offering direct sales, consumers can have Coca-Cola products delivered at their door as often as they wish. The brand can also launch auto-ship and an incentive program to encourage loyalty and competitive advantage by offering this service. By switching to honey or offering a naturally sweetened beverage, the products would appeal to consumers wanting a healthier option but still demanding a carbonated Coca-Cola product. Coca-Cola’s cash cows are Coke, Sprite, Diet Coke, and Orange Fanta. The dogs are the Zero line, Barq, Fresca, and Gold Peak Tea. With the decline in sales, Coke should consider discontinuing the lines to appeal to the new demand. My top recommendations are:
David, F. R., & David, F. R. (2019). Strategic management: a competitive advantage approach, concepts, and cases (17th ed.). Upper Saddle River: Pearson.
Grant, M. (2021, April 02). How SWOT (STRENGTH, WEAKNESS, opportunity, And THREAT) analysis works. Retrieved April 08, 2021, from https://www.investopedia.com/terms/s/swot.asp
Hayes, A. (2020, December 14). Reading the bcg growth-share matrix. Retrieved April 08, 2021, from https://www.investopedia.com/terms/b/bcg.asp