A SWOT analysis of Coca-Cola reveals its main strength as the most valuable brand in the world, while its main weakness is that most of its products are carbonated drinks. The increasing consumption of bottled water has created a major opportunity for Coca-Cola, but water scarcity is a significant threat.
Coca-Cola's strengths include that it has the largest share of the global beverage market - at least 40 percent. The company has a strong marketing strategy and spent $3 billion on advertising in 2012, which increased its sales and brand recognition. Coca-Cola's weaknesses include that it has not diversified its product portfolio, which is essential for its future growth and diversification costs are rising each year. The company has high debt levels from acquiring other companies; although it sells many brands, only a few brands have revenues that exceed $1 billion.
Coca-Cola has significant growth opportunities in emerging markets where consumption of carbonated beverages in rising. Another opportunity is the increasing demand for healthy beverages, which gives the company an opportunity to diversify its product portfolio. A major threat for the company is the changing tastes of consumers, which has reduced the consumption of carbonated drinks.
Over 60 percent of Coca-Cola's income is generated outside the U.S., so the company's income falls whenever the dollar is performing strongly against other currencies.