Brief insights to master the art strategy 101, using known models.

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Insight: Coca-Cola, a global brand that needs no introduction, saw a gradual decline in sales due to a shift in consumer preferences. The rise of health consciousness among consumers led to declining sales of sugary sodas, then Coca-Cola’s main product lineup. With increasing cases of lifestyle diseases, especially obesity and diabetes among both young and old, the message was becoming louder — get off sugary drinks. Consumers were increasingly seeking healthier beverage options, posing a threat to the company’s core product line.

Coca-Cola leaders used the SWOT analysis to evaluate its — 1) Strengths. Strong global brand, extensive distribution network, and loyal customer base.
2) Weaknesses– Heavy reliance on sugary drinks, at a time they were falling out of favour due to several health concerns.
3) Opportunities –Growing market for healthier drinks like
bottled water, fresh juices, and diet sodas.
4) Threats –Increased competition from healthier beverage brands and potential regulatory actions against sugary drinks.

Coca – Cola leaders further developed hypotheses and tested them to fine tune their understanding of the market. For example, one of them read: “It would have to be true that there still exists a large section of consumers who need sugary drinks to justify our continued investment in Coca-Cola drink as a flagship brand.” The market research to test this hypothesis identified a huge customer base of the youth — majority of school going children to the age of 25. A reason for increased presence of soft drink sellers at schools and universities.

Result: Informed by this analysis, Coca-Cola launched new product lines like Diet Coke, Coca-Cola Zero, and various bottled waters and juices, which addressed health concerns for their older customer base while leveraging their brand strength, helping to stabilize and grow sales. Today, Coca-Cola continues to grow.

Always re-invent yourself.

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