Coca Cola: Gone Flat the SWOT

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However, Isdell strongly believes there's still growth for carbonated drinks. The threats the company may face are first, because of the poor relationship Coca-Cola has with its bottlers, it may impede progress. It was in the late 1990s when Ivester has imposed a tremendous price increase on its bottlers in order to sustain a profit. The bottlers were outraged and refused to carry some of Coca-Cola's new beverages. Although relations have improved, the relation between bottlers and the company has never quite reached what it was before. Therefore, this is a threat when Coca-Cola is looking to expand and promote their drinks but bottlers are skeptical and refuse to do so. Another threat is although the efforts of Coca-Cola's willingness to explore new beverage markets, they are a little late to the game. PepsiCo has begun such expansion years before and has dominated the market, and has proven to be a dominant force. In the realm of sports drinks like Gatorade, PepsiCo is the winner for having a hold of 81% of the market share while Coca-Cola's Powerade only commands a 17% share of the market. In terms of energy drinks, PepsiCo owns Red Bull and has a 58.5 share of the market vs. Coca-Cola's 2.8% share. Furthermore, another threat is the intense involvement of Coca-Cola's board members and their denial to enter other food markets. They are the threat that sits on the company and causes the organization to regress while other companies are progressing. They threaten the livelihood and advancement of Coca-Cola because as the taste and interest of consumers move on, the company is refusing to do so.

The five causes of action that would help the company are to first breakthrough to other markets like PepsiCo has done, in terms of snacks.

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Another action is to acquire rival companies, which Coca-Cola has refused to do, but other companies have accomplished. As well, Coca-Cola has once moved away from advertising but it is vital to getting the brand name out there. Furthermore, better relations with its bottlers despite what has happened in the past, and if possible, bring in new faces for board members. The pros of the solutions I suggested are they will expand what Coca-Cola will produce and market, which would tailor to the needs of the consumers and trends. Another benefit is with advertising, and proper media relations, Coca-Cola will get its word out and expand brand loyalty. Despite the past attempts of risky advertising and billboards, it's time the company receives a face-lift and renews itself, for example, through commercials and viral videos to target the demographic. The cons of the solutions are that it will be breaking into markets, that other companies like PepsiCo, have already established a strong hold and has command of consumer loyalty. Another con is with such a drastic change and development of Coca-Cola, it will be a hard adjustment for not just companies and employees, but consumers, too. It may be hard to change the Coca-Cola culture and what people have associated with the company for so long. Consumers may either be resistance and dislike where the organization is going, or be surprised and like the….....

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