Question

Choose a business and using a SWOT diagram chart the key issues relevant to expanding outside the US.

Answer 1

The Coca Cola company, the beverage maker, has increased its advertising ,promotional and marketing activities to spread its business across the world.SWOT analysis is a technique in business planning which helps a company to identify its strengths, weaknesses ,opportunities and threats.Coca cola's strengths are its brand awareness , customers do not want to shift to other brands and its world's largest distribution of network which makes its product available to more than 200 countries in the world .With its stable distribution system the company could reach customers in remote areas too.However its weakness is its water management which is the main ingredient in all its product. Scarcity of water,makes the company incur high cost.Foreign currency fluctuation is also a weakness of the company.Coca Cola earns most of its revenues from business outside the US.Increase or decrease in the value of the US dollar in respect to other currencies ,affects its operating income.Its opportunity is its diversification of product and its extended reach to different parts of the world.Coca cola also provides energy and health drinks apart from its traditional coke drink.India and China have increased demand for its juice and coffee.Selection of more nutritious drinks and indirect competition with companies such as Starbucks are its threats.People now demand more of organic product rather than coke which contains sugar.Starbucks do not directly compete with Coca cola but has a place in the company's market share.They offer healthier alternative to Coca cola and so are preferred by people.Thus even though the company faces a lot of challenges , its brand appeal will take it much ahead than others in future all over the world.