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1TITEL: SWOT ANANLYSIS FOR COCA COLA IN ETHIOPIANAME: XXXXINSTITUTION: KKKK
2SWOT AnalysisCoca- Cola EthiopiaIntroductionCoca Cola Is a carbonated soft drink sold in stores world-wide. coca and cola are originalingredients from coca leaves and kola nuts and are also a source of caffeine.In the world its known as the best cola beverage.DefinitionSWOT ANALYSISThese are the Strengths, weakness, opportunities and threats that a company needs to improveon its production of products in a particular productEthiopia is a 3rd world country and has the fastest growing economy in the world but is stillone of the poorest countries. Its economy has an annual growth rate of almost 10% for thepast seven years. Its current population is at 107,908,460 as of Tuesday August 8th 2018,based on the latest United Nations estimate which is equivalent to 1.41% of the total worldpopulation. (UN ,2018)
3Strengths of coca cola in Ethiopia1. It has a large market in the beverage industry.The company owns, distributes and sells over 500 various non-alcoholic beverage brands inover 200 countries.2. affordable.Economies of scale allow the company to share its fixed costs over hundreds of brands andbillions of servings, making each drink as cheap as possible.3.large Market over suppliers and competitors.Due to its size, The Coca-Cola Company can exercise its market power over suppliers byrequiring lower prices from them. The company has a big size to affect the competition byunder-pricing some of its items and saturating the market with many of its own products.4. Power over the buyers.The Coca-Cola brand and the company’s other signature drinks have a large brandrecognition all over the world. The company can influence consumers’ buying decisionsthrough its brand power and massive marketing campaigns easily its smaller rivals.5. Reach more people.The Coca-Cola Company’s distribution network allows the chain to reach more customersthan most of its rivals could reach. Wide audience also makes it easy to introduce newproducts more easily.
4Weakness of coca cola in Ethiopia.1. 1. Absence in health beverages – If you watch the news, you would know that obesityis a major problem affecting people nowadays. The business environment is changingand people are taking measures to ensure that they are not obese. Carbonated beveragesare one of the major reasons for fat intake and Coca cola is the largest manufacturer ofCarbonated beverages. The inference is that the consumption of beverages in developedcountries might go down as people will prefer a healthy alternative.2. Water management – Coca cola has faced challenges in the past due to its watermanagement issues. At the same time, people have also blamed Coca cola for mixingpesticides in the water to clear contaminants. Eg Dasani3. Product Diversification is low – Where Pepsi has made a smart move and diversifiedinto the snacks Coca cola is missing from that . The segment is also a good revenuedriver for Pepsi and had Coca cola been present in this segment, these products wouldhave been an additional revenue driver for the company.4. competition with Pepsi – Pepsi is a thorn in the flesh for Coca cola. Coca cola wouldhave been the clear market leader had it not been for Pepsi. The competition in these twobrands is immense and we don’t think Pepsi will give up so easilyOpportunities of coca cola in Ethiopia1. Improvement in supplies – with the transportation costs always rising. Coca colas canexperience a major setback their business is based on transportation and distribution.Coca cola should keep strict watch on its Supply chain and keep improving to bring thecost down.
52. Packaged drinking water – With hygiene becoming a major factor in the consumptionof water, people are considering Packaged drinking water.3. Developing countries – developed countries have a high presence of Coca cola; thesecountries are slowly moving towards healthy beverages. the developing countries are stillbeing introduced to carbonated drinks and soft drinks. Countries like Ethiopia which aredeveloping and have hot summer, find the consumption of cold drinks almost doubledduring summers, hence the higher consumption in developing countries can be a goodprivilege for Coca cola to capitalize on.THREATS OF COCA COLA IN ETHIOPIA1. Getting Raw material/Availability of raw materials – The threat here is that waterscarcity is on the rise. With the climate changing, and regions of various countries facingscarcity of water, sooner or later someone might raise fingers on beverage companies.If water is limited, Coca cola can experience a major downfall in their revenue andamount of distribution.2. Indirect competitors – Coffee, tea and cocoa. Are products that offer a healthycompetition to Coca colas carbonated drinks. They might not be a big competition forCoke, but they give a dent to its beverage market, even energy drinks like Red bull a arestealing away the market share indirectly.ConclusionCoca-Cola is facing many challenges, It being a big brand, its financial statues and resourceshave it well positioned to take advantage of worthwhile acquisition targets. The company willprobably remain a top-tier beverage provider. Coca-Cola’s large distribution network.
2 SWOT Analysis Coca- Cola Ethiopia Introduction Coca Cola Is a carbonated soft drink sold in stores world-wide. coca and cola are original ingredients from coca leaves and kola nuts and are also a source of caffeine. In the world its known as the best cola beverage.
