17-05-2012, 10:41 AM
SWOT ANALYSIS OF COCA-COLA and PIZZA HUT
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Introduction
SWOT stands for Strengths Weakness Opportunities Threats
A “SWOT” analysis is usually performed when managers wish to determine their company’s current position in the market (Garner, 2005). The acronym refers to the four areas of “strengths”, “weaknesses”, “opportunities”, and “threats”. Such an analysis on PepsiCo will show its current position, so that the company’s managers and associates can determine what is needed for optimal future development. It can therefore be regarded as a key strategy in ensuring a company’s current well-being and future survival.
SWOT analysis is a technique much used in general management as well as marketing scenarios. SWOT consists of examining the current activities of the organization- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist.
SWOT ANALYSIS OF COCA-COLA
Strength
Coca-Cola has been a complex part of American culture for over a century. The product's image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment" (Allen, 1995).
Additionally, according to Bettman, et. al, (1998) Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers (Bettman, et. al, 1998).
Key feature of strength:
• Outstanding Reputation.
• Popularity
• well known
• Branding obvious and easily recognized
• A lot of finance
• customer loyalty
• International Trade
• Huge Advertising Budget.
• Able Marketing Intelligence.
Weakness
Although domestic business as well as many international markets are thriving (volumes in Latin America were up 12%), Coca-Cola has recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power." According to an article in Fortune magazine, "In Japan, unit case sales fell 3% in the second quarter [of 1998]...scary because while Japan generates around 5% of worldwide volume, it contributes three times as much to profits. Latin America, Southeast Asia, and Japan account for about 35% of Coke's volume and none of these markets are performing to expectation (Mclean, 1998).
Coca-Cola on the other side has effects on the teeth's which is an issue for health care. It also has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years.
Key feature of weakness:
• Difficult to affect Vision and Direction for Large Global Company.
• Non Uniform Company name for some PepsiCo products.
• Word of mouth
• Lack of popularity of many Coca Cola’s brands
• Most unknown and rarely seen
• Result of low profile or non-existent advertising
• Big Health Issues for Pepsi Drink - Fat and Sugar.
• Falling Behind in All-embracing Markets, namely Russia, Venezuela, and South America.
• Health Issue in the Indian bazaar with baptize - independent pesticides.
Opportunity
Brand recognition is the significant factor affecting Coke's competitive position. Coca-Cola's brand name is known well throughout 94% of the world today. The primary concern over the past few years has been to get this name brand to be even better known. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products (Allen, 1995).
Coca-Cola's bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse, area (Bettman, et. al, 1998).