The Coca-Cola is
the world's largest beverage company, offering consumers almost 500 still and
sparkling brands. Coke has the world's largest beverage distribution network;
consuming in more than 200 countries enjoys the Coke’s beverages at an average
of nearly 1.6 billion servings a day.
In 2011,
Coca-cola was declared the world’s most valuable brand according to
Interbrand’s best global brand. Most diversified range of products such as
Cola-Cola Cherry, Coca-Cola Vanilla, Diet Coke, Diet Coke Caffeine-Free,
Caffeine-Free Coca-Cola and range of lime or coffee and lemon. Coca-Cola has
very effective advertising campaign, its advertising also represent the US
culture. By sponsoring different games and teams and also featured in countless
television programs and films.
Strengths
The Coca-Cola is
the world's largest beverage company, offering consumers almost 500 still and
sparkling brands.
Coke has the
world's largest beverage distribution network; consuming in more than 200
countries enjoys the Coke’s beverages at an average of nearly 1.6 billion
servings a day.
In 2011,
Coca-cola was declared the world’s most valuable brand according to
Interbrand's best global brand.
Cola-Cola gets
competitive advantage through the well-known global trade marks by achieving
the premium prices. It means Cola-Cola have something that their competitors do
not have.
Coca-Cola is
sold in restaurants, vending machine and stores in more than 200 countries.
Coca-Cola
achieve both competitive advantages, differentiation and low cost, which
maintain its low cost whereas simultaneously differentiate its
products.
Most diversified
range of products such as Cola-Cola Cherry, Coca-Cola Vanilla, Diet Coke, Diet
Coke Caffeine-Free, Caffeine-Free Coca-Cola and range of lime or coffee and
lemon.
Coca-Cola has
very effective advertising campaign, its advertising also represent the US
culture. By sponsoring different games and teams and also featured in countless
television programs and films.
Coke and its
bottlers are among the world's top purchasers of citrus juice, coffee and
sugar.
Coke has started
to work with the International Labor Organization's International Program on
the removal of Child Labor.
Weaknesses
Coke is
criticized for lofty levels of pesticides in its products, exploitative labor
practices, environmental destruction, building plants in different countries
those employed slave labor and monopolistic business practices.
Less inventory
turnover as compare to PepsiCo and product line restricted to the beverages
only.
By giving the
distributing and bottling authorization of its own products, it results in
dropping a major portion of potential revenue.
Coke has been criticized
for its aggressive marketing to children and suspected unfavorable health
effects.
Different
studies has been conducted and found other drinks and Coke harmful if consumed
excessively.
In India
Coca-Cola gaining negative publicity due to water issues, it resulted in lower
growth and pitiable brand image.
Lack of
management enthusiasm for offering foreign products into U.S.A markets.
Opportunities
It is highly
difficult for the new entrants to enter in the soft drink industry because of
some factors such as brand image and loyalty, bottling network, advertising
expense, retail distribution and fear of retaliation.
Coke has
significant opportunities within global supply chain to encourage and develop
more sustainable practices to benefit consumers, customers and suppliers.
While; it is still in the premature stages of exploring these opportunities and
dedicated to the economic vitality and health of the farming communities our
supply chain engages.
Cock Bill &
Melinda Gates Foundation and nonprofit TechnoServe initiated a partnership to
facilitate more than 50,000 small fruit farmers in Kenya Uganda to increase
their productivity and double their incomes by 2014.
Coke can
diminish the fear of substitute by diversifying (related or unrelated) by
offering substitute products.
World population
is expected to grow at 8 billion 2025, and 9.2 billion by 2050. Nearly 99%
growth will take place in developing countries.
Changing
consumer lifestyle; by becoming health conscious and preferring substitute
products. Coke can relatively diversify and offering health conscious
products.
Coke promotes
and support sustainable agriculture not only because it makes good business
sense.
Focusing on its
advertising and differentiation can increase its profits.
Bottled water
consumption in increasing day by day, 11 percent growth is reported.
Threats
Pepsi is the
major and primary rival of the Coca-Cola in the soft drink industry, Pepsi is 2nd
in revenue behind the Coca-Cola, and also hit Coca-Cola in some markets.
Its primary
competitor PepsiCo is highly diversified by providing big range of food
products.
Coca-Cola also
faces the tough competition from local brands in all over world such as in
Central and South America Kola Real also known as Big Cola in Mexico is giving
tough competition to Coca-Cola etc.
Large numbers of
substitutes are available in the market such as water, tea, juices coffee etc.
Coca-Cola is facing
different regulations and policies set by government in different countries.
Low growth rate
in carbonated drinks, which is recorded less than one percent in primary market
of Coca-Cola.
Changing
consumer lifestyle; by becoming health conscious and preferring substitute
products. Different studies has been conducted and found other drinks and Coke
harmful if consumed excessively.
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