Coca-Cola, Popular Music, and the FIFA World Cup SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Coca-Cola, Popular Music, and the FIFA World Cup
The Coca-Cola Company (Coca-Cola), the brand that "taught the world to sing," was widely considered to be the leader when it came to music marketing. The 2010 and 2014 FA?dA?ration Internationale de Football Association (FIFA) World Cup games provided an ideal backdrop for analyzing Coca-Cola's success in music marketing. While the company's marketing approaches were similar in both World Cup games, they differed in their delivery and results. In 2016, in the face of new competition in the music marketing space, namely from Pepsi, FIFA, and even Coca-Cola itself, the company needed to lead the way with the ultimate goals of selling sodas and songs. David Allan is affiliated with Saint Joseph's University.
Swot Analysis of "Coca-Cola, Popular Music, and the FIFA World Cup" written by David Allan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Coca Fifa facing as an external strategic factors. Some of the topics covered in Coca-Cola, Popular Music, and the FIFA World Cup case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Coca-Cola, Popular Music, and the FIFA World Cup casestudy better are - – increasing government debt because of Covid-19 spendings, increasing energy prices, increasing transportation and logistics costs, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization,
increasing commodity prices, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Coca-Cola, Popular Music, and the FIFA World Cup
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Coca-Cola, Popular Music, and the FIFA World Cup case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Coca Fifa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Coca Fifa operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Coca-Cola, Popular Music, and the FIFA World Cup can be done for the following purposes –
1. Strategic planning using facts provided in Coca-Cola, Popular Music, and the FIFA World Cup case study
2. Improving business portfolio management of Coca Fifa
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Coca Fifa
Strengths Coca-Cola, Popular Music, and the FIFA World Cup | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Coca Fifa in Coca-Cola, Popular Music, and the FIFA World Cup Harvard Business Review case study are -
Strong track record of project management
– Coca Fifa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Coca Fifa is one of the most innovative firm in sector. Manager in Coca-Cola, Popular Music, and the FIFA World Cup Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Sales & Marketing industry
– Coca-Cola, Popular Music, and the FIFA World Cup firm has clearly differentiated products in the market place. This has enabled Coca Fifa to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Coca Fifa to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Coca Fifa has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Training and development
– Coca Fifa has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Coca-Cola, Popular Music, and the FIFA World Cup Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Coca Fifa
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Coca Fifa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Coca Fifa has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Coca-Cola, Popular Music, and the FIFA World Cup HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Coca Fifa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Coca Fifa has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Superior customer experience
– The customer experience strategy of Coca Fifa in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Sales & Marketing field
– Coca Fifa is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Coca Fifa in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Coca Fifa has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Coca-Cola, Popular Music, and the FIFA World Cup - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Coca Fifa in the sector have low bargaining power. Coca-Cola, Popular Music, and the FIFA World Cup has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Coca Fifa to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Coca-Cola, Popular Music, and the FIFA World Cup | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Coca-Cola, Popular Music, and the FIFA World Cup are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Coca-Cola, Popular Music, and the FIFA World Cup HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Coca Fifa has relatively successful track record of launching new products.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Coca Fifa supply chain. Even after few cautionary changes mentioned in the HBR case study - Coca-Cola, Popular Music, and the FIFA World Cup, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Coca Fifa vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Coca Fifa has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As Coca-Cola, Popular Music, and the FIFA World Cup HBR case study mentions - Coca Fifa takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High bargaining power of channel partners
– Because of the regulatory requirements, David Allan suggests that, Coca Fifa is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Coca-Cola, Popular Music, and the FIFA World Cup, in the dynamic environment Coca Fifa has struggled to respond to the nimble upstart competition. Coca Fifa has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Coca Fifa is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Coca Fifa needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Coca Fifa to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Coca Fifa has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Coca-Cola, Popular Music, and the FIFA World Cup should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Coca-Cola, Popular Music, and the FIFA World Cup, is just above the industry average. Coca Fifa needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High cash cycle compare to competitors
Coca Fifa has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Coca Fifa products
– To increase the profitability and margins on the products, Coca Fifa needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Coca-Cola, Popular Music, and the FIFA World Cup | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Coca-Cola, Popular Music, and the FIFA World Cup are -
Creating value in data economy
– The success of analytics program of Coca Fifa has opened avenues for new revenue streams for the organization in the industry. This can help Coca Fifa to build a more holistic ecosystem as suggested in the Coca-Cola, Popular Music, and the FIFA World Cup case study. Coca Fifa can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Coca Fifa can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Coca Fifa can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Developing new processes and practices
– Coca Fifa can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Coca Fifa can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Coca Fifa can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Coca Fifa is facing challenges because of the dominance of functional experts in the organization. Coca-Cola, Popular Music, and the FIFA World Cup case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Building a culture of innovation
– managers at Coca Fifa can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Coca Fifa in the consumer business. Now Coca Fifa can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Coca Fifa has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Coca-Cola, Popular Music, and the FIFA World Cup - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Coca Fifa to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Coca Fifa has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Coca Fifa can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Coca Fifa to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats Coca-Cola, Popular Music, and the FIFA World Cup External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Coca-Cola, Popular Music, and the FIFA World Cup are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Coca Fifa in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Coca Fifa high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Consumer confidence and its impact on Coca Fifa demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Coca Fifa will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Coca Fifa in the Sales & Marketing sector and impact the bottomline of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Coca Fifa business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Coca Fifa can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Coca-Cola, Popular Music, and the FIFA World Cup .
Stagnating economy with rate increase
– Coca Fifa can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Environmental challenges
– Coca Fifa needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Coca Fifa can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Coca Fifa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Coca Fifa needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Increasing wage structure of Coca Fifa
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Coca Fifa.
Weighted SWOT Analysis of Coca-Cola, Popular Music, and the FIFA World Cup Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Coca-Cola, Popular Music, and the FIFA World Cup needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Coca-Cola, Popular Music, and the FIFA World Cup is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Coca-Cola, Popular Music, and the FIFA World Cup is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Coca-Cola, Popular Music, and the FIFA World Cup is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Coca Fifa needs to make to build a sustainable competitive advantage.
