Swot Analysis of the Coca-Cola Company in Brazil

SWOT analysis of the Coca-Cola Company in Brazil

Strengths:

1. Coca-cola is the worldwide top one brand that customers can rely on.

2. In terms of the manufacturer, distributor and marketer, Coca-Cola is the largest

nonalcoholic beverage concentrates and syrups business in the world.

Weaknesses:

1. Few penetration to rural areas, where the major potential markets are.

2. Strict profitability demands constrains the sales volume.

Opportunities:

1. The soaring environmental consciousness to work on the beverage containers.

2. To endorse and sponsor more social events and contribute to the society.

3. To come up with more efficient practical promotions.

Threats:

1. The threat of new entrants is unthinkably huge.

2. Confront competitions from each side of markets in Brazil.

Pros and Cons of the Coco-Cola's strategies implemented in Brazil

1. Price-Cut: This is one method that they should do to increase the sales, but it will

deteriorate the company profitability demands.

2. Expansion: Products diversification and expansion will benefit customers to have

multiple choices.

3. Acquisition: This is just a temporary shortcut to mitigate the competitions, and it

will not be a good method in the long run because new-comers erupt

all the time that no one can prevent.

4. Brand image: This is the best strategy for Coca-Cola to work on so far, by

constantly enhancing their brand image can help they win back the

trust and loyalty from their customers.

Recommendation for Coca-Cola in Brazil

1. It is impossible for any company to compete with competitors who do not

have to pay their income taxes, which amount to 40% of the final sales price.

Therefore, I suggest that Coca-cola should lobby the government stronger to

impose more strictly about the tax payments to each player in the market.

2. Although it is very admirable for Coca-Cola Brazil to be adhere...