An analysis of a product’s external environment can be very taxing to an organization. The framework for analyzing external environmental factors include: competition, economic growth and stability, political trends, legal and regulatory, technological advancements and sociocultural trends (Ferrell & Hartline, 2014). Coca-Cola is the #1 nonalcoholic beverage company as well as one of the world’s most recognizable brands. It owns or licenses and markets more than 500 beverage brands in more than 200 countries. In an attempt to provide an external environment analysis of Coca-Cola Company, we first examine competition. Coca-Cola has a net revenue of $63 billion and a brand value of $77,839 billion with 123, 200 employees. Its competitors are PepsiCo, Inc., Nestle and Dr. Pepper Snapple Group, Inc. According to the New York Stock Exchange, PepsiCo has a market cap of $105.45 billion, 297,000 employees with revenue per employee at $221.199. Dr. Pepper Snapple Group has a market cap or $8.95 billion, 19,000 employees with revenue per employee at $314,368.
There is no question that Coca-Cola is poised for economic growth and stability. It has 30% of the market share. It’s expected to increase its market cap to $90 billion by the year 2020. It has increased its dividend payments every year for 54 consecutive years. The company has the 72nd highest growth rate out of 182 businesses with 25+ years of dividend payments without a reduction.
Being a global beverage company
Coca-Cola Company is an American multinational beverage corporation headquartered in Atlanta Georgia. It is best known for its flagship product Coca-cola. The company offers more than 500 brands in over 200 countries and serves over 1.7 billion servings per day. The company’s stock is listed on the NYSE and it is a part DJIA, S&P index and the Russell 1000 index. The company had revenues of $48.01 billion in the year 2012 and a net income of $9.01 billion. Coca-cola has a total asset base of 86.17 billion and 146200 employees worldwide. Coca-Cola’s current chairman and chief executive is Muhtar Kent.
Therefore, for a long term investor, Coca-Cola would be an attractive stock compared to Pepsi Co.
Coca-Cola is one of the world’s biggest and most well-known beverage brands. During its heydays when the company was led by CEO Goizueta, Coca-Cola’s stock was on a steady rise. As late as the 1990s, Coca-Cola Co. was one of the most respected companies in America, a master of brand-building and management in the dawning global era (Carvens & Piercy, 2009). Over the last couple of years, however, Coca-Cola’s stocks have been falling and profits have been decreasing from quarter to quarter.
The Coca-Cola Company is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands.
Coca-Cola and PepsiCo compete at length with each other among an extensive list of other brands. A key concern for both of these companies in 2011 was their capability to market, produce, and distribute across national boundaries of a single nation. This concern has decreased as both companies were able to push though their limitations and were able to establish manufacturing plants in countries across the globe. (Coca Cola Company, 2011)
As mention before, Coca-cola has 47.3 percent market share in the country’s cola market versus Pepsi which hold 44.5 percent. Coca-cola is also the brand known around the worlds, which are the largest producer and distributor of ark colas in the world. Even in the current monetary crisis, the company continues to expand and the financial position shows that Coca-cola has a strong cash position in compare to PepsiCo which the long term debt of PepsiCo is so high.
The Coca Cola company is perceived to be the most famous trademark on the globe, and it is equally so. The company claims more than 400 brands that appeal to a wide range of individuals throughout the world. They are in a position to fulfill needs of every one of their buyers making their experience with their beverages a better one. The entity’s drinks entice a lot of people across all races, age, and gender. Coca Cola is outstanding for its overall popularity as its items are sold in over four hundred countries in the world, while major contenders like Pepsi are just available in very few countries. Such a competitive advantage has placed
The objective of this report is to evaluate the Organizational Resources and Competitive Strategies of The Coca Cola Company in the USA. This study is conducted in order to carry out the company’s overall strategic Marketing reasoning. The report will highlight the Marketing capabilities, Competitive strategies adopted and the competitive Advantage Coca Cola USA has over its competitors in the country.
This paper focuses on global business strategy of The Coca-Cola Company, who is the leader in the beverage industry as well as, the world?s leading soft drink maker that operates in more than 200 countries and owns or licenses 400 brands of nonalcoholic beverages. The paper will concentrate on the PESTEL analysis of the organization focusing on the external factors of the business and the environment where it operates. All of the following environments will be discusses in the research; Political, Economic, Sociological, Technological, Legal, and Environmental as they the changes in the market segment. Within this paper it will discuss some of thr
The case explains the economics of the soft drink industry. There activities that add value to consumer at nearly every stage of the value chain of the soft drink industry. The war is primarily fought between Coca-Cola and PepsiCo as market leaders in this industry; who combined have roughly a ninety percent market share in their industry. The impact of globalization on competition has allowed both of these major players to find new markets to tap which has allowed each continued growth potential.
For over 126 years, Coca Cola has been operated as world’s largest beverage company together with its subsidiary brands. The United States, as Coca Cola’s international headquarters, has one of the largest populations where Coke is the main beverage for most of the consumers. The purpose of this essay is to determine whether the environmental changes in the United States are beneficial for Coca Cola Company to operate more markets in the future. This essay will explore both the Coca Cola Company as well as the market in the United States. The tools used for this examination include a SWOT analysis of Coca Cola Company and PEST analysis of United States. In addition, we will examine Porter’s 5 forces of the beverage
The Coca Cola Company is a multinational company with more than 140,000 employees, the company is in beverage business and its flagship product Coca Cola is considered one of the best soft drink. Coca Cola soft drink is the real revenue generator of the Coca Cola Company. The company was found in 1892 and by 2010 it was reported that the company has the serving of 1.7 billion per day so the company has only grown since its inception. The company is serving its product in more than 200 countries, and the Coca Cola Company owns more than 500 brands, this shows that the graphs of the company is moving upwards and the Coca Cola Company is growing at an immense rate.
Coca-cola boasts of being the world’s largest beverage company serving approximately one billion customers daily. The most dominant products distributed by Coca-cola are Coke, Fanta, Sprite and Diet Coke. This strategy is aimed at ensuring that every customer gets satisfied whenever they use a Coca-cola brand. Coca-cola has large distributions across the globe making it the largest distributor in the world. The late Roberto Goizueta termed Coca-cola to be an American company with large international business and a sizeable American business (Ferrell, 2008). This has helped a lot with brand selling as it is the most recognized brand in the whole world. “Coca-Cola has the most valuable brand name in the world and, as one of the most visible companies worldwide, has a tremendous opportunity to excel in all dimensions of business performance” (Ferrell, Fraedrich, & Ferrell, 2008). Coca-cola, however, has not been smoothly running over the decades in operation. It has on numerous occasions been criticized for overlooking some ethical standards that it should have rather upheld. This essay aims at looking into some of the issues facing Coca-cola, the most significant of them, how they were resolved and how Coca-cola should have solved them.
According to Coca-Cola website, Coke is considered to be the biggest best-selling soft drinks and recognisable brand in the world. This company consist of 20 billion dollar brands; this includes Sprite, Fanta, Diet Coke, Coca-Cola, PowerAde, Minute Maid and Vitamin water. In this report an attempt will be made outlining on how Coca-Cola generates money and the importance of micro and macro environmental factors in an organisation.
The global beverages industry is currently a low-growth market, with an expected compound annual growth rate of 5.7% between 2017 and 2025 (Grand View Research 2017). Additionally, the industry is quite saturated with firms that offer increasingly differentiated products. However, due to this low growth rate, companies have been engaging in price competition to gain competitive advantage and increase their market share. Nevertheless, Coca Cola is a dominant force in this market, controlling 40% of the industry, and is therefore at a low risk of losing its position.