Coca Cola is a soft drink company invented in late 19th century by John Stith Pemberton, who has sold his invention to the businessmen “Asa Griggs Candler”. Candler has taken the Coca Cola at new heights through his marketing strategies with the result Coca Cola is dominating the soft drink market since 20th century all over the world. To maintain the brand image and differentiation from others competitive priducts Coca Cola has maintain the secrecy of formation of the soft drink but the main ingredients which creates the signature taste of Coca Cola are coca leaves and cola nuts. To maintain the secrecy Coca Cola just manufactured the concentrate and sell it to the licensed bottlers who are responsible to sell it further to the vending machines, restraunts, wholesalers and distributors after adding some sweetners and filtered water in the concentrate. Along with the signature drink Coca Cola has experimeneted with various tastes to grasp the other end of customers having different tastes and preferences. Thus the most common drinks supplied by Coca Cola are diet coke, caffeine free Coca Cola, Coca Cola Zero Sugar, Coca Cola Cherry, Coca Cola vanilla, Coca Cola Lime etc. the major customer base has ranked it as the world’s third most valuable brand following Apple and Google and 87th rank in the fortune 500 list 2018 on the basis of total revenue generated by the company.
Analysis of Business environment of Coca Cola:
The business environment of the company constitutes of the internal and external environment which has major impact on operations of company. Internal environment provides strength to the company though build the weaknesses whereas the external environment provides more opportunities and impose threats on the company. the analysis of the internal and the external environment of Coca cola is as follows:
Valuation of company: Coca Cola has been valued around 79.2-billion-dollar company. this valuation consists of brand value of Coca Cola, various factories all over the world and their respective assets. Thus Coca Cola have the strength of their wide spread and asset base throughout the world.
Global presence: currently Coca Cola is operating in more than 200 countries, thus it is easy to find the soft drinks by their customers and retain them. As to retain the customer requires less cost than to create the new one.
Market share: in the beverage industry, Coca Cola is the market leader, as there are only two main competitors in this industry- Coca cola and Pepsi, in which Coca Cola clearly has high market share. The other beverage brands such as Coke, Thumbs Up, Sprite, Fanta, Maaza, are the subsidiaries of Coca Cola.
Customer oriented strategy: Coca Cola has adopted customer oriented strategy. As they target all the demographics of population such as people of all ages, gender etc. thus people feel the brand as the part of their livelihood.
Customer loyalty: Customers of Coca Cola are brand loyal. It is difficult to find the substitute of Coca Cola. Even Coca Cola is providing different flavors to satisfy the need of their customers and for various occasions or moods. It has been analyzed that Coca Cola and Fanta are the most demanded beverages supplied by the company.
Distribution network: Coca Cola has covered the large part of beverage market throughout the world. With their wide presence they are creating major influence on the buying patterns of their customers.
Water management: As a major component of beverages is water, it is essential for Coca Cola to maintain the quality of water. In the past times Coca Cola has faced many water management issues related to mixing of pesticides or other contamination in water which create bad impact on the brand value of company so it had to be carefully handled by the company.
Diversification: Coca Cola has many options and opportunities to diversify their business in various industries such as health benefit product range or the food business under the flagship company Coca Cola. As a company has wide customer base and the strong supply chain it would be easy for the company to enter a new industry and generate more profitability.
Improvement in supply chain: Due to technological advancements there is a scope to enhance the supply chain of Coca Cola to experiment the automated supply chain mechanism. Coca Cola Amatil has partnered with Swinburne the graduate school of entrepreneurship in Australia to experiment new heights of supply chain.
Issues in different countries: In the recent times, Coca Cola has faced various issues in India and Middle East which has impacted a lot on the market share of the company but still Coca Cola is able to beat Pepsi in these markets. The major issue confronted by Coca Cola was with Israel, the outcome of the issue was that the company was accused of boycotting Israel in the Arab league. India made certain modification in the laws for the beverage industry which again impacted Coca Cola.
Ethical issues: Coca Cola has been accused with some environment related issues that Coca Cola contains some harmful pesticides or ingredients which are hazardous for the health of consumers. Thus it’s been named as “Killer Coke”.s
Coca Cola being an international company has faced many challenges all over the world but has tackled the issues efficiently and maintaining their brand image and the market value. Issues faced were taken positively and dealt accordingly to upgrade the mechanism and operations of Coca Cola. Thus company stands as the third largest brand globally. The significance of internal and external environment has been taken seriously by the company to improve their strengths, overcoming their weaknesses, to grab the potential opportunities available in the global market by overcoming threats.
Environmental Analysis of Coca Cola Company Business Essay. (2019). Retrieved from https://www.ukessays.com/essays/business/environmental-analysis-of-coca-cola-company-business-essay.php
Management Essay Sample: Internal Analysis of the Coca Cola Company | EssaysProfessors.com. (2019). Retrieved from https://essaysprofessors.com/samples/management/internal-analysis-of-the-coca-cola-company.html
Bhasin, H. (2019). SWOT of Coca Cola - SWOT analysis of Coca cola. Retrieved from https://www.marketing91.com/swot-coca-cola/