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Business Analysis of Coca Cola International Company - Case Study Example

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This paper presents the business analysis of Coca Cola International Company. Coca Cola International is a United States company that started operating in 1833 and is a soft drink giant. Coca-Cola, most commonly known as Coke, is a carbonated soft drink which was invented by John S. Pemberton…
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Business Analysis of Coca Cola International Company
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Download file to see previous pages he mission of Coca-Cola is to create value for all the shareholders, customers and stakeholders by creating superior value and making profitable relations with the customers as well. Their mission is to “To refresh the world...to inspire moments of optimism and happiness and to create value and make a difference.” They try to refresh the world by using the advantage that they have as being the world’s largest beverage company. Coca-Cola develops high-quality beverages, which itself creates value for the company and helps strengthen its image, contributing to its overall success. Their vision is to work on every aspect of their company in order to achieve sustainable growth. The primary stakeholders of Coca-Cola include employees, customers, partners, society, shareholders and the company itself. They believe that in order to be successful, they must look ahead and plan for the future, using the resources in the most efficient way. Its product, satisfied customers, excellent leadership and, most importantly, a strong brand name further contribute to the overall success of this company (“Mission, Vision & Values”, n.d.)
Porter`s five forces are a set of forces formulated by Michael E. Porter who proposed that strategies of any company are formulated based on the threat of potential entrants and substitute products, the bargaining power of both buyers and sellers prevailing in the market, as well as the level of rivalry among competitors (Daft & Lane, 2009, p. 196). The amount of capital required by any soft drink company is really high, which acts as a barrier to entry for new entrants. Also, Coca-Cola has such a strong brand name with a huge amount spent on selling and promotion. In order to maintain its market share, Coca-Cola will have to spend a huge amount on advertising to ensure that its message is being carried forward to its customers all over the world. This is also one of the ways through which this company can compete with its rival companies, especially Pepsi. Coca-Cola and Pepsi dominate the soft drink industry and therefore, Coco-Cola will have to come up with new ideas in order to compete effectively and maintain its position in the market. The pricing done by this company will also depend on the type of market, whether it is customer-oriented or seller oriented. The biggest strength that Coca-Cola has is its Coke itself. It has been able to maintain its original taste for years and this is the reason why its customers are always loyal. It has the strongest brand across the globe with brand equity of over $50 billion. The quality and taste are the major strengths of Coca-Cola and one of the reasons for its overall success. In order to maintain its market share, one of the strategies that Coco-Cola can adopt is to use such promotion tactics involving “the original cola” as it is the reason for this company`s success. This will certainly attract a lot of customers. Rather than concentrating on the product itself, it can emphasize the benefits or the satisfied feelings customers get while using this product.
Weaknesses: One of the greatest weaknesses that Coco-Cola has is the fact that soft drinks are often associated with ill health. According to a study, women who consume more than one soft drink are twice as likely to develop diabetes as women who drink less than one per month (Meyers, 2005). These factors go against the product and the company itself. Another weakness is negative publicity or bad word of mouth. ...Download file to see next pagesRead More
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