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 Content

I. Introduction 3

II. SWOT Analysis 4

III. Competitive Strategy 7

IV. Bibliography

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 COCA - COLA COMPANY

l. Introduction

On May 8, 1886, the history of Coca-Cola began in Atlanta. The pharmacist John S. Pemberton

wanted to create a syrup against digestion problems that also provided energy, and ended up

creating the most famous drink in the world. Jacobs Pharmacy was the first to market the

preparation at a price of 5 cents a glass, selling about nine each day. It was just the beginning of

a story that spanned more than 130 years.

The Coca-Cola company is the world's largest distributor of multi-category beverages, which have

been part of the daily lives of millions of people for decades, and is committed to generating

economic value and social and environmental well-being, in collaboration with our groups of

interest.

Over the years, Coca-Cola has faced competitive challenges and changes in consumer preferences.

However, they have managed to maintain their position as a leader in the beverage industry

through continuous adaptation and innovation in their products and business strategies. Coca-Cola

is a company globally recognized for its broad portfolio of beverages and its focus on creative

marketing. They have demonstrated a commitment to social responsibility and sustainability, and

continue to be a dominant force in the beverage industry. In this document, we will detail the

SWOT analysis, which is very important to recognize the strengths and weaknesses of a company.

Likewise, we will identify the type of competitive strategy that Coca-Cola has. All this is in order

to show the marketing plan and know the reason for the success in the world.

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ll. SWOT Analysis

Coca-Cola is one of the most iconic and recognized brands globally, with a significant presence in
the beverage market. Below is a SWOT analysis of Coca-Cola:

Internal factors:

Strengths:

- Recognized Global Brand: Coca-Cola is one of the most valuable and recognized brands
globally, which gives it a huge competitive advantage. With sales in more than 200 countries and
approximately 1.9 million servings daily, Coca-Cola has a global reach.

- Diversified product portfolio: Over the decades, Coca-Cola has acquired or developed a
wide range of beverages, including soft drinks, waters, juices, energy drinks, and more. This
diversity is strategic, since it allows the company to access different market segments and respond
to changing consumer preferences without depending solely on its flagship product.

- Market share: Coca-Cola has the largest market share. According to a report, Coca-Cola
products are sold in more than 200 countries. The report also shows that of the

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50 billion different beverages served worldwide in a day, Coca-Cola-owned or licensed beverages
account for approximately 1.9 billion.

- Innovation & Marketing: Strong marketing strategies and constant innovation in your
products and advertising campaigns.

- Loyal clientele: The brand has strong customer loyalty, and customers are easily attracted to a
particular taste, making it difficult to source substitutes quickly.

Weaknesses:

- Associated Health Issues: Two major health problems, diabetes and obesity, caused by high
sugar consumption, can be traced back to the intake of carbonated drinks as they are the main
source of sugar consumption. Many health experts warn consumers against consumption and
suggest banning these drinks.

- Production and Logistics Costs: Fluctuations in raw material, logistics, and production
costs can affect your profit margins.

- Dependence on carbonated beverages: Despite diversification, a large portion of its

revenue still comes from the sale of soft drinks, especially Coca-Cola.

- Competition with Pepsi: Coca-Cola could have been the only market leader in the beverage
industry if Pepsi had not been. Pepsi is known as the most important rival that Coca-Cola is known
to have. Since then, Coca-Cola has spent millions on marketing and innovation.

- Regulatory Challenges: Continuously faces regulatory and tax challenges in different

markets due to public health and environmental concerns.

External Factors:
Opportunities:

- Expansion into new markets: Although Coca-Cola is present in almost all countries, there is
still untapped potential in terms of product variations adapted to local preferences in emerging
markets.

- Diversification of healthy products: It is another growth opportunity for Coca-Cola in

Latin America, the company has entered the market for healthy drinks without added sugar, which
has allowed it to reach a wider audience and explore new beverage categories.

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- Strategic alliances with more companies: They are a key opportunity as the company has
strengthened its relationships with local partners to reach new markets and expand its presence in
the region.

- Marketing of the least sold products: In The Coca-Cola Company's product portfolio there
are several products that have failed to find market acceptance. The company needs to focus on
marketing these products. Marketing and increasing sales of these products will help increase the
company's income.

- The corporate social responsibility: Coca-Cola has implemented various initiatives to

support local communities and improve the sustainability of its operations. These initiatives not
only improve the company's reputation, but also generate loyalty and commitment from
consumers.

Threats:

- Changes in Consumer Preferences: Changes in consumer preferences toward healthier,

more natural products can decrease demand for your traditional beverages.

- Intense Competition and New Entrants: Beyond traditional competitors like PepsiCo,
there are numerous local brands and emerging health-focused beverages competing for consumer
attention and loyalty.

- Economic Fluctuations: Economic instability and recessions can affect consumers'

purchasing power, reducing demand for non-essential products.

- Government Regulations and Policies: Increased government regulations and taxes on

sugary and carbonated beverages in several countries.

- Environmentally destructive packaging: An article from The Guardian reports that Coca-
Cola has been declared the worst plastic polluter due to approximately 3 million plastic containers
a year.

This SWOT analysis provides a clear view of Coca-Cola's strategic position, allowing it to
capitalize on its strengths and opportunities while addressing its weaknesses and preparing to face
threats in the global marketplace.

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lll. Competitive strategy

Coca-Cola adopts a competitive strategy of differentiation. This is characterized by the creation

of unique products and the construction of a strong brand that distinguishes itself in the market.
Key features of this strategy include:

● Unique recipe: It has a unique recipe adapted to the tastes of customers. This has
contributed to the company 's growth on a large scale as they do not spend the time
trying to adapt the flavor to regional markets around the world.
● Logo with timeless font: The company standardized the logo in 1923 and, like the
recipe, decided that while the packaging could adapt to the times, the logo had to be
untouchable. Thus was born a logo that has had more than 100 years to remain engraved in
the minds of people around the world.
● Strong brand value: Coca-Cola is currently valued at $97.7 million, making it one of
the most valuable brands in the world. Over the years, the company has developed unique
strategies such as custom bottle designs, festive seasonal designs, and other eye-catching
designs to attract buyers.
● Constant Innovation: Coca-Cola invests in research and development to launch new
products and improve existing ones. This includes the development of low-calorie and
sugar-free beverages, as well as the introduction of new product lines such as energy and
wellness drinks.
● Effective Advertising and Marketing: Coca-Cola has developed highly effective
marketing campaigns that resonate with consumers on an emotional level. Their ability to
create emotional connections with consumers through advertising is a key component of
their differentiation strategy.

Impact on the company

Coca-Cola's differentiation strategy has allowed the company to maintain a leading position in
the beverage industry for more than a century. By focusing on building a strong brand, constant
innovation, and a robust distribution network, Coca-Cola has ensured its ability to compete
effectively and adapt to market trends. This strategy has also helped Coca-Cola mitigate risks
associated with changes in preferences.

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lV. Bibliography

1.

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