SWOT analysis is a segment of the situation analysis, where the company determines where it stands on four key strategic areas: strengths, weaknesses, opportunities and threats. Strengths and weaknesses are a part of the company’s internal environment. Strengths embody the features and capabilities that together become a competitive advantage for a company, and the weaknesses are vulnerabilities that a company has in comparison to its current or potential competitors. Opportunities and threats are factors in the external environment that can somehow influence the company. The company cannot control these factors, but they should be monitored continuously as the basis for strategic planning (Heflo.com, “The purpose of SWOT analysis).
Strengths. Brand awareness and brand equity are among Coca-Cola’s main strengths.
The Coca-Cola Company is one of the most widely recognized brands in the world. Its signature logo, red and white colors, and jingles resonate with consumers, and Interbrand’s rankings continuously confirm the brand’s value. Further, the company’s great financial resources are crucial for market expansion and customer loyalty. Marketing strategies and customer loyalty are also well-recognized company strengths. The financial muscle is the key for great marketing efforts and increased product innovation, which should fuel market cap over the long run. As mentioned above, the company possesses the world’s largest distribution network which enables it to effectively