However, it has invested a lot in marketing to acquire global popularity. Environmental Factors The main thing that affects the company is water accessibility. It is training and educating its suppliers for better performance. This has helped the brand maintain a continuous and uninterrupted flow of raw material. Asian Social Science, 11 23 , p22. Yet it is one of the most famous in business literature when it comes to analyzing competitive forces working in an industry. The macro environment refers to the external factors such as political, technological, social, legal and economic factors which affect the operations of the business.
Coca Cola has to adhere to environmental laws as they manufacture their products. Today it is a global brand with very high level of popularity. Diversified product portfolio with 21 billion-dollar brand The Coca-Cola Company owns and distributes over 500 different brands, which is the most extensive beverage brand portfolio in the whole industry. All these factors are important for generating revenues. Looking at the threat of substitutes which is characterized as low, Coca cola's price elasticity is not affected by the substitute products since the company has a limited number of substitutes when it comes to the products that they purchase. Its mission statement provides a purpose to endure without yielding and continue the company plans for the future.
Over the last five years, the company has invested in marketing promotion as a customer growth strategy. Taxi industry is now dominated by players like Uber and Lyft. If a new entrant began gaining ground, Coca-Cola could simply raise margins enough to buy all of the available shelf space until the new entrant was out of business. This is an added expense that dents the profits of the company. The global sales of Coca-Cola is higher than Pepsi but in India Pepsi is leading the market with highest sales as initially coke faced legal issues while entering Indian market. Business-Week and Interbrand, a branding consultancy, recognize.
Coca cola was invented on May 1886 by Dr. It also produces Dasani which is a mineral water and the vitamin water. Peoples are acquiring concerns of negative effects of carbonated drinks. We believe our success depends on our ability to connect with consumers by providing them with a wide variety of choices to meet their desires, needs and lifestyle choices. The research is to be used to evaluate the environmental issues and work force diversity of Coca Cola, also strategies and recommendations on these issues will be explored.
However, since agricultural products constitute a major portion of its raw material, it is working to advance the interests of farmers in various parts of the world. However, Coca Cola also invests a lot in building customer loyalty and keeping customers engaged. What does a diversified portfolio provide for the company? So in this paper we will discuss the external environment of Coca-Cola and how the various factors of external environment affects the functioning of the company and how the company responds to these uncertainties. Apart from Coca Cola and Pepsi, there are other local and international brands too in the market that are competing for market share and trying to attract customers using new strategies. Such factors include employee relations, workplace environment, and motivational factors. According to various reports 2017 proved a profitable year for the soda industry.
Advertising, Coca-Cola, Coca-Cola brands 729 Words 4 Pages indeed Coca- Cola. The importance of culture as a major factor in international trade has already been recognized by research. There can be one practical answer. In Japan, they created 30 alternative flavors to appeal to Japanese consumers. When they launched their name campaign — putting real names on their bottles — customers lined up to take photos of bottles with their name on it. Pepsi and Coca Cola have continued to focus on product innovation and bring new products to the market for faster growth.
. The macro-environment factors can impact the that shape strategy and competitive landscape. Company background: The Coca cola company is now a largest soft drink company in the world. The company has to follow the relevant laws in order to do business in a particular market. The Coca Cola Company uses various entrepreneurial skills to establish and sustain itself in one of the most competitive industries. Low levels of product differentiation are one on the factors which has led to the development of rivalry. Opportunities In the wake of health conscious products, the sale of bottled water can be an avenue for coca cola to remedy the situation as water is now lauded as the healthiest drink in the world.
Strengths, weaknesses, opportunities and threats analysis provides a framework within which marketers can identify significant developments in the market. Gaudet, 2009 Convenience stores, grocery stores, and vending machine organizations typically offer several different kinds of soft drinks and the shelf space required along with the competitive nature of the stores usually requires acceptance of lower margins for Coca-Cola. The bargaining power is high because these various stores purchase in bulk. The company produces finished product in cans and bottles. Most Downloaded Sample of Management.
Global economic crises of this scale can have a heavy impact on all the major global businesses. Customers are more aware and equipped with information to make their choices. The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life. The scope of the analysis will involve the entire coca cola company. From marketing to supply chain management as well as manufacturing and distribution, everywhere being technologically advanced is important for fast growth of businesses. These customers have very little bargaining power.