Executive Summary The North American Industry Classification System (NAICS) code for the Coca-Cola Company is 3121 (U.S. Census Bureau, 2012). This NAICS code is used to identify Soft Drink Manufacturing. However, the icon Coca-Cola is not in this industry alone. The data of 2002 identifies 2,908 competitors in this category (U.S. Census Bureau, 2002). This NAICS code encompasses establishments primarily engaged in manufacturing soft drinks and artificially carbonated waters. Although Coca-Cola has made its global footprint as a leading competitor in this market and they continue strategizing for long-term sustainable growth, Coca-Cola is innovative in their methodology and application to maintain one-step ahead of their …show more content…
Coca-Cola’s ability to maintain a strong global competitor over the last 125 years is evident of the company’s knack to foster success by being flexible, broad in thought, and provide transparency of and within the organization. They continue to collaborate with bottling distributors, seek environmental solutions to waste and recycling, and maintain competitive pricing and products all while seeking to understand consumer demands. Porter’s 5-Forces Analysis High • Competitive Rivalry: advertising, high entry barrier, number of competitors, brand recognition, market share • Threat of Substitution: minimize with mergers, brand loyalty, current trends, switching costs, perceived price/value Moderate: • Supplier Power: number of suppliers, cost of changing suppliers, size of suppliers, raw materials • Buyer Power: number of buyers, pricing, brand loyalty of buyer, bargaining leverage, buyer volume • Threat of New Entry: capital requirements, fixed costs, distribution access, patents and proprietary knowledge, government regulations (QuickMBA.com, 2009-2010) Opportunities Taken to Create Product Substitution Coca-Cola can set itself apart from competitors such as Pepsi Co. and Cadburry Schweppes without limiting there consumer support. These competitors also dabble in the distribution of food and snack products. Coca-Cola’s focus is primarily on
The Coca-Cola Company is America’s number one soda brand and has been consumer’s drink of choice for decades. Coca-Cola does not sell just for its great taste, but also for its effective marketing strategies and sustainability. According
products to suit customer’s needs, Coca-Cola was able to make a positive step forward in their
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)
In 1886, the Coca Cola Company was developed but it wasn't until 1898 that the fierce competitor Pepsi-Cola entered into the market. These 2 companies are the two major players that dominate the consumer beverage (soft-drink) industry. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million dollars annually. With the growth of these two companies, PepsiCo has developed and acquired additional products outside the scope of just the consumer beverage industry, these products have helped the company to increase their exposure and position in the global market. This has not been the case for the Coca Cola Company; they
In 1886, the Coca Cola Company was developed but it wasn 't until 1898 that the fierce competitor Pepsi-Cola entered into the market. These 2 companies are the two major players that dominate the consumer beverage (soft-drink) industry. Coke and Pepsi have since been competing to rein the global market in consumer beverages. The market of drinks in the United States alone is valued at more than thirty million dollars annually. With the growth of these two companies, PepsiCo has developed and acquired additional products outside the scope of just the consumer beverage industry, these products have helped the company to increase their exposure and position in the global market. This has not been the case for the Coca Cola Company; they
Coca Cola has differentiated its product and services that are valued by its customer. Its product are based on customer’s preferences, with affordable price and made easily accessible.
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
As the Coca Cola company has come a long way from advertising a few servings of sparkling drinks in a pharmacy, to a worldwide business. Coca Cola’s loyalty to remain at the front of the shifting public values in increasing their promotion tactics has confirmed to their plus. Without any confusion The Coca Cola Company has developed all the basics necessary to run a multimillion, worldwide venture and it refreshes all the people that come in contact their
Partially due to decreasing interest in colas by consumers, PepsiCo faces increased competition in the fight for market share in the cola industry. Pepsi and Coke have gone head to head for years, with Dr Pepper and other smaller brands running a distant third, but with a shrinking consumer base, companies are left to fight over the remaining consumers. PepsiCo has usually played a close second throughout the years, but continuing to invest in a dwindling industry is no way to achieve sustainable profitability. Increased investment would be a wasted effort mainly because of the brand recognition and loyalty that Coca-Cola enjoys. While Pepsi does have its own brand recognition and loyal customers, it is not to the same degree that it is for Coke. In the fight for the remaining cola consumers, it is not likely that Pepsi will win out after being in second
It has taken much more than simply the brand and product to grow Coca-Cola in the number one leader in the soft drink market. Over the past 100 plus years, Coca-Cola has built a huge network of distribution and manufacturing networks. These collaborations that are superior to all others and all types of relationships are a distinctive competency for Coca-Cola. The way that they organize and plan their contracts has proven to be extremely successful and continues to keep Coca-Cola at the top of the market. They have been able to build relationships with suppliers, buyers, bottlers, manufactures, retailers and consumers that are strengthened by the degree of loyalty from both sides of these relationships. They continue to manage their company
The Coca-Cola Company is one of the largest soft drink company in the world and remain as the top brand among Colas. Coca-Cola’s success begins with their world class distribution system that helps them deliver
Supplier Power: the fewer suppliers’ choices you have and the more help from suppliers you require will help to determine how powerful your suppliers are. Suppliers of key parts and supplier with unique products and services can drive up the price of your materials or services. Also the cost of switching from one supplier to another will all contribute to the supplier power.
Recently, the Coca-Cola Company laid out its growth plan in its 2020 vision, and it plans to double its system revenue, increase its total servings to three billion per day, and raise its operation margins (Banks, 2016). The company has several reasons relating to its economies of scale and cost reductions that would make it realize its strategy. The Coca-Cola Company owns one of the world 's strongest nonalcoholic beverage brands, and its brand qualifies as a billion-dollar brand in nineteen countries across the world (Foster, 2014). Each of the Coca-Cola’s brands generated about fivehundred million to one billion dollars annually in revenue (Collier, 2014). Currently, the company holds the leadership position in the world 's soda industry with a market share of 41 percent (Banks, 2016). Besides, Coca-Cola enjoys a stable global distribution system in two-hundred countries and owns more vehicles than both FedEx and UPS combined (Elmore, 2016). The company, therefore, has a huge moat with significant economies of scale that none of its competitors can beat or copy.
The majority of Pepsi's revenue comes from its food distribution division which owns popular brands such as Frito-Lay, Tostitos and Quaker Foods. Coca Cola is an example of a company with sustained competitive advantage, technological innovation, and a resourceful and an extraordinary distribution network. Coca Cola’s competitive advantage has proven its sustainability over the last 100 years. Their Market dominance is for a number of reasons. The main contributor to Coca Cola’s sustained competitive advantage is due to the secret recipe for Coca Cola, which conceivably tastes better than other carbonated drink. As evident through their roughly 400 brands in approximately 200 markets Coca Cola’s ability to continue to develop new products and means of distribution has secured their future success as a market leading organization. The world’s most effective and efficient distribution system has made Coca Cola accessible to billions of people worldwide. Coca Cola is often available in plentiful supply to people in areas where other beverage and food distribution companies would never consider delivering let alone selling their products. The Middle East and secluded African villages and towns are examples as it’s quite common to see a small shop selling ice cold Coke in the middle of nowhere. Coca Cola’s production techniques and manufacturing efficiencies are so advanced that it costs a fraction of the selling price to
In the 1980s, under CEO Roberto Goizueta, Coca-Cola was a global brand with a growing presence in global-emerging markets like Europe, Russia, and South East Asia. It beat back its main rival Pepsi to be a leader in the carbonated beverage market with a 70% market share. During the 1990s however, under new CEO M. Douglas Ivester, the company’s market share started declining due to political (regulatory), economic, social (consumer), and technological (operations) challenges in the marketplace.