5-5-2015

CLUB MED

New strategy formulation

SWOT

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Basics
1. Strengths: relative internal strong points
2. Weaknesses: relative internal weak points

3. Opportunities: relevant external factors having an

impact on the organisation and which bear possibilities
to improve performance
4. Threats: relevant external factors that weaken the
organisation or threaten its existence.

Confrontation matrix
Factors

Opportunities (O)

Strengths (S)

Weaknesses (W)

OFFENSIVE:

TURNING
AROUND:

Exploiting the
chances

DEFENSIVE:
Threats (T)

improving,
changing

SURVIVING:

defending
crisis
against potential management,
attacks
preparing for exit

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Example SWOT: Coca-Cola

Strengths

Weaknesses

The best global brand in the world

in terms of value ($77,839 billion)
Worlds largest market share in
beverage
Strong marketing and advertising
Most extensive beverage
distribution channel
Customer loyalty
Bargaining power over suppliers

Significant focus on carbonated

drinks
Undiversified product portfolio
High debt level due to acquisitions
Negative publicity
Brand failures or many brands
with insignificant amount of
revenues

Opportunities

Threats

Bottled water consumption growth

Increasing demand for healthy
food and beverage
Growing beverages consumption
in emerging markets (especially
BRIC)

Changes in consumer preferences

Water scarcity
Competition from PepsiCo
Saturated carbonated drinks
market

Offensive strategy
Confrontation between internal strengths and external
opportunities

Exploiting the chances, and using strengths to do this

Coca-Cola could use its strong brand awareness and according
marketing and advertising abilities (S) to develop a new,
healthy drink and tap into a new and growing customer
segment (O). Eg. 100% bio Coca Cola Milk.

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Defensive strategy
Confrontation between internal strengths and external threats
Defending against external attacks, and using strengths to do

this
Coca-cola could use those same strengths (brand and
marketing strengths) to develop non-carbonated drinks as well
(e.g. water with additional flavours, vitamines, energy,). In
that way, the threath of saturation in the carbonated drinks
market will be bypassed and weakened, as well as its direct
competition from Pepsico.

Turning around strategy

Confrontation between internal weaknesses and external
opportunities

Improving and changing weaknesses and using opportunities to

do this
Coca-cola could grab the increased demand for bottled water
and more healthy drinks (O) as an opportunity to supplement
its inadequatly diversified product portfolio (W) with new
growth products.

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Surviving
Confrontation between internal weaknesses and external
threats
Not a real strategy
Crisis management, preparing for exit
Too diversified set of soft drinks? Fairlife Milk (lactose free)
Exits of for example Coca-Cola BlK in 2008 (coffee flavored
cola)