Coca-Cola. Company Information
- Coca-Cola has been a successful company
- Available in more than 200 countries
- In greater quantities thanks to machinery
- Its products are affordable and accessible
- Should embrace a low-cost operating policy
- Entail both voluntary and involuntary layoffs
Organization Background
- Been a force for positive development
- In 1886 at a soda fountain
- Over 400 non-alcoholic beverage brand products
- Drinks, beverages, waters, juices, teas, and coffees,
- Coca-Cola, Coke Zero, Sprite, and Fanta (The Coca-Cola Company, 2022)
- Available in more than 200 countries worldwide
Internal Strengths
- Market dominance in the beverage sector
- Every day, it serves 2 billion
- Drinks are among the most popular
- The brand and strong consumer loyalty
- Coca-Cola and Fanta have large fan base (Vučetić, 2018)
- Most efficient and broad distribution system
Internal Weaknesses
- Pepsi is the Coca-cola’s largest opponent
- A fierce rivalry in the industry
- Products are not diverse: Coca-Cola has lagged
- Is linked to obesity and diabetes (Seradio et al., 2018)
- Environmental concerns: The use of plastic
- Greenhouse gas emissions and global warming
External Opportunities
- New products to diversify its markets
- New offerings in the health areas
- Price of transportation and fuel rising
- Resources to buy startups and small companies (The Coca-Cola Company, 2022)
- Improve marketing for less popular products
- Revenue will benefit from increased marketing
External Threats
- Controversy about the corporation’s water use
- In areas where it is scarce
- Pollution cases: A California environmental group
- Intensified competition: Despite Pepsi’s direct competition
- Consumers are becoming more health-conscious
- They avoid products containing unhealthy substances (Cramer, 2021)
Macro Environment Analysis: PESTEL
Political Factors: changes to the existing legal system
Economic Factors: operations in hundreds of countries, the market for healthy beverage alternatives, sociocultural Factors, civilized countries- 30 brands for Japanese market
Technological Factors: products can be produced more efficiently (Cramer, 2021), Coca-cola employs social media technology- Facebook
Environmental Factors: the arising norms and environmental requirements
Legal Factors: intellectual property rights protect patented products (The Coca-Cola Company, 2022)
Micro Industry Analysis: Porter’s Five Forces
Threat of New: the danger of competitors is low
Threat of Substitutes: are several alternatives to Coca-Cola products (Cramer, 2021)
Supplier Power: its suppliers have minimal negotiating influence
Buyer Power: not under pressure from individual customers
Industry Rivalry: Pepsi is currently the primary rival
Generic Strategy Recommendations
- Generic strategies should be cost leadership
- Comparable to those of its rivals
- To save money on all products
- Keeping the prices of Coca-cola products low (The Coca-Cola Company, 2022)
- Lead to increased sales and popularity
- Range of nutritious beverages and juices
Organization Design Recommendations
- Coca-Cola should embrace a low-cost strategy
- It should establish fresh operating divisions
- Should be a greater emphasis on interconnectivity
- Minimized replication of resources and products (Seradio et al., 2018)
- May entail voluntary and involuntary layoffs
- Employees eligible for a parting package
- Ethical Considerations
Drought-stricken districts throughout India blamed Coca-cola
- Factories for drastically decreasing water supplies
- Had groundwater contamination and exhaustion issues
- Large amount of water in scarce areas
- Accused of causing obesity and diabetes (Cramer, 2021)
References
Cramer, M. (2021, August 11). Coca-cola is changing the flavor of a soda. Again. The New York Times. Web.
Seradio, P. M., McKee, M., & Stuckler, D. (2018). Coca-Cola–a model of transparency in research partnerships? A network analysis of Coca-Cola’s research funding (2008–2016). Public Health Nutrition, 21(9), 1594-1607. Web.
The Coca-Cola Company. (2022). Web.
Vučetić, R. (2018). Coca-cola socialism. Americanization of Yugoslav culture in the sixties. Central European University Press.
