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Five Forces Of Five Factors Of The Coca Cola Company

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Coca –Cola Company is responsible for and acts as owner of the brand.
Coca –Cola is a company that takes responsibility for every one of its actions or their lack of action. In Coca –Cola Company, if an error occurs it is accepted that the error occurred and is solved immediately. Consumers are the priority of this company and always have been.
This organization manages each of its system assets and focuses on value creation. Distributors, manufacturers, and customers are all important for the creation of value within the company.
Coca –Cola Company has knowledge about the importance of its employees. For this reason Coca-Cola Company rewards its employees by taking risks and finding better ways to solve different problems. All the employees …show more content…

Then we will explain in details five factors that affect Coca-Cola Company focusing in Coca-Cola classic (the product). The factors are: Competitors: Coca-Cola is a carbonated beverage which is the flagship of the Coca-Cola Company which belongs to the soft drink industry. The soft drink industry is almost dominated by the duopoly of Coca –Cola Company and Pepsi Company, these being the main rivals in the market, so Coca-Cola´s main competitor is Pepsi. Threat of entry of new competitors: The soft drink industry is dominated by Coca-Cola and Pepsi, it is very difficult for new competitors to be able to enter this market. Coca-Cola classic is a product that is too strong and can destroy its competitors easily by starting a price …show more content…

An example of a replacement product are “Postobon” products. In Colombia the “Postobon” brand drinks such as “Manzana postobon” are very accepted as an alternative product.

Bargaining power: Coca –Cola Company, is a company with a very strong bargaining power, which has advantages when negotiating. Coca –Cola Company can negotiate with its suppliers and distributors and require very high standards, as well as better prices as a result of negotiations. Bargaining power of customers: Coca –Cola Company’s main customers are food stores, restaurants, supermarkets and universities. The bargaining power is average, because Coca-Cola’s clients are the most important part of the business , but Coca –Cola Company can decide whether to sell its products to the customer.

Coca Cola Company distribution model Coca-Cola system integrates: 63 bottling plants, 358 distribution centers, 28,500 distribution and operational vehicles, 11,000 distribution routes and 1.4 million points of

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