Coca Cola External Environmental Factors Essay

1015 WordsNov 27, 20105 Pages
External Environmental Forces During the strategic marketing management process, there are many external forces that any company must be aware of in order to be profitable. These very important factors to be considered come in the form of technology trends, economic and government trends, consumer trends and innovations. It is very important to become aware of all of the potential opportunities and threats that may arise from these trends. I believe that for Coca-Cola, there are external forces in all of these areas that they must be aware of and incorporate into their planning if they are to continue to be successful. When it comes to technology, in recent years there are many emerging trends that I feel that Coca-Cola could use to…show more content…
Since consumers are directly affected by the status of an economy, a company should always be aware of the economic conditions in the countries in which they operate. Currently, all over the world, we are dealing with a recession. The unemployment rate is very high, and as a result, consumers have decreased buying power. When consumers have less income, the first thing that they stop buying are luxury goods. In my opinion, Coke is a luxury item and not a necessity. I feel that if Coca-Cola wants to continue to be successful in the current economic conditions, they must begin to produce goods that people must buy. An example of such a product would be dairy products, like milk. While a consumer who has a strict budget may skip purchasing Coke, they will not skip on purchasing milk. While technological and economic factors are extremely important to Coca-Cola, we feel that currently, the most important factor that needs to be addressed are changing consumer trends. Today, consumers are becoming more and more health conscious. When people purchase a food or drink, we think that they would ideally prefer something that has some health benefits to it. Coke has always been criticized for being bad for your health due to the food coloring, carbonation and high-fructose corn syrup. While we don’t believe that it is likely that Coca-Cola will lose much business to other cola competitors such as Pepsi, I do feel that they will lose
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