Coca-Cola Company Analysis: Strategy, Finance & SWOT

Introduction: The History of Coca-Cola

The Coca-Cola Company began humbly in 1886 when Atlanta pharmacist John Pemberton mixed a caramel-colored liquid and carried it a few doors down to have it mixed with carbonated water. A few customers sampled it and agreed that it was something special, so Pemberton began selling it for five cents a glass, with sales of approximately nine glasses per day (Coca-Cola Company, "Heritage Timeline"). Pemberton never lived to see his invention become one of the biggest empires in the soft drink industry. Upon his death, Frank Robinson, Pemberton's bookkeeper, named the mixture Coca-Cola and wrote it in the distinctive script that is still used as the company's trademark today (Coca-Cola Company, "Heritage Timeline").

It was salesman Asa Candler who built the syrup into a viable business and sponsored the first plants in Chicago, Dallas, and Los Angeles (Coca-Cola Company, "Heritage Timeline"). In the years prior to World War I, many copycat beverages entered the market, and Coca-Cola found itself in a position of needing to protect its brand. It was during this time that the company held a contest to design the distinctive glass bottle that would become a trademark of the Coca-Cola brand, setting its product apart from competitors. The contest was won by the Root Glass Company of Terre Haute, Indiana. One of the key features of the bottle is that its contour could be recognized even in the dark (Coca-Cola Company, "Heritage Timeline"). From 1919 to 1940, Robert Woodruff introduced the familiar six-pack that allowed consumers to take the cola home with them.

Coca-Cola's overseas expansion began in World War II when Woodruff ordered that "every man in uniform gets a bottle of Coca-Cola for five cents, wherever he is and whatever it costs the company" (Coca-Cola Company, "Heritage Timeline"). The 1960s through the 1980s saw the expansion of the soda industry and the growth of overseas sales. The 1980s saw the introduction of Diet Coke and New Coke, and it was during this time that Coca-Cola became a public company. Since then, Coca-Cola has remained a brand that is a recognizable American icon throughout the world (Coca-Cola Company, "Heritage Timeline").

Business Analysis and Strategy

The mission of the Coca-Cola Company is to refresh the world, inspire moments of happiness, and create value that makes a difference in the world (The Coca-Cola Company, "Growth, Leadership, Sustainability"). Currently, Coca-Cola is sold in over 200 countries and employs approximately 92,800 people. Nearly 1.6 billion servings of Coke are provided to customers every day, making Coca-Cola one of the most recognized consumer beverage brands in the world (The Coca-Cola Company, "Growth, Leadership, Sustainability").

The Coca-Cola Company did not become one of the largest corporations in the world without a solid business strategy (The Coca-Cola Company, "The Coca-Cola System"). Still headquartered in Atlanta, Georgia, the company now offers much more than its original branded cola. Its portfolio includes a wide selection of waters, juices, juice drinks, teas, coffees, sports drinks, and energy drinks.

Coca-Cola's bottling system is the backbone of the organization. Originally, Coca-Cola was sold only through fountain machines, meaning customers had to travel to a retail location. The introduction of the bottling system allowed Coca-Cola to distribute its products over a wider region and enabled consumers to enjoy them anywhere. The bottling system uses more than 300 bottling partners worldwide to deliver products to local consumers. Rather than operating a central plant that ships products around the globe, the Coca-Cola system emphasizes local employment, local business, and support for local economies. This allows the company to operate like a local business rather than a global giant, while maintaining close working relationships with customers such as grocery stores, restaurants, street vendors, movie theaters, and amusement parks (The Coca-Cola Company, "The Coca-Cola System"). Coca-Cola works through distributors rather than selling directly to consumers.