Coca Cola Company Case Study The Beverage Industry

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INTRODUCTION This report will seek to reveal a detailed status of the beverages industry in the world with respect to the case study company (the coca cola company). The Beverage Industry has been on a rapid growth making competition stiff among the companies within the industries. The industry can be divided as to those producing alcoholic and non alcoholic beverages; this study will mostly focus on the non alcoholic beverages sector. Being considered among the most competitive industry, companies ought to become creative, unique and equipped with appropriate strategies in order to stand any chance of survival. Among these strategies include diversifications, efficient distributions, advertising among others. It is due to this that prompted…show more content…
The beverage industry can broadly be subdivided into two segment; Alcoholic and Non Alcoholic beverage. This study case studies the coca cola company and the non alcoholic beverage segment. The sub segments of the industry have been over the years characterized by a few large sized dominating the other competitors. There is however stiff competition between these companies prompting continuous creativity and strategic measures such as altering the tests of the consumers, adverse advertising, cost reduction strategies, distribution strategies among others. Product pricing is also highly competitive as margins keep changing over years due to the increasing competition and new companies coming in the industry. Non Alcoholic beverage industry This industry has many companies competing for dominance in market share. However, few companies have come to emerge as the trend setters most notably being the coca cola company closely competing with Pepsi Company. A list of other top companies currently in the industry…show more content…
The two giants in the industry produce both the carbonated and non carbonated drinks with well distribution channels across the world. This is enabled through their partnerships with a variety of bottling companies across the globe. The bottling companies are thus sustained by the companies creativity in terms of coming up with new products and improved sales. The two companies have also expanded through purchasing of smaller businesses in the industry as well as establishing distribution partnerships across the globe. Variety productivity has also been a reason for dominance in the industry together with pricing as consumers would mainly opt for the dominant brands as well as inexpensive products. The industry is also characterized by seasonal sales as consumers will buy most drinks during warm seasons as opposed during winter times. Health issues such as diseases like diabetes act as a challenge to the industry, this has limit sugar containing drinks favoring bottled water and sugar free drinks. The companies have thus been forced to be creative in serving such segment of the market in order to maintain high sales. The key markets of the industry include U.S, Canada, Russia, India, China and Brazil where most bottling plants have been established to support the soft drinks production. The main strength of the non alcoholic beverage industry includes;

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