Coca Cola Internal And External Analysis

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Internal and external analysis help companies develop tactics that will be useful when developing a strategic marketing plan. There are three main tools that will be used to conduct these analyses are Porter’s Five Forces, PEST, and SWOT. The purpose of this business report is to inform Coca-Cola’s Board of Directors and CEO of possible ways to maximize the company’s strengths and opportunities, while addressing its weaknesses and threats. The first analysis is Porter’s Five Forces. Here, the focus is on the competition that exists within the nonalcoholic beverage industry. First, the threat of new entrants is examined by looking at things such as market share, financial start-up costs, and difficulty of building up a brand. Next, the bargaining…show more content…
Starting off with the threat of new entrants; which refers to the amount of competition caused by new entrants as opposed to existing ones (Wilkinson, 2013). The more entrants, the less customers/revenue is left for existing companies. Entry barriers determine the probability of new entrants being a threat, and include things like capital investments, access to distribution and consumer switching costs (Wilkinson, 2013). Initial investments vary from type of products and industries. In the beverage market, launching a new company is very costly. On top of the obvious things, like production costs, there are many other costs associated. Money must be spent on things like testing out the product, creating a marketing plan, legal fees, creating a logo, bottle designs and website/social media design (Pranevicius, 2014). The high cost of starting a beverage company raises the entry…show more content…
One of the biggest health concerns is sugar and its negative side effects such as diabetes and obesity. In response, more people are turning to healthier options with less sugar. According to a study done by Harvard School of Public Health, water is the best choice when it comes to beverages. Also, in places with access to clean drinking water, there is almost no cost. While Coca-Cola does offer bottled water, many still choose to substitute for simple tap water. In fact, many health professionals advocate the substitution of sugary drink for

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