Micro and macro environmental of COCA-COLA
Micro business environment is the internal environment of the organization and the main environment in which management functions. The micro environment affects the organization straight. Its most closely connected to the business .micro environment mainly reflects by strengths, weakness opportunities, threats (SWOT).
The SWOT analysis of Coca-Cola
Our coca cola company’s strength
Our company is the world’s famous and largest company
Strong marketing and adverting of our company products
Corporate social responsibility in country
One of the most prized companies in the world
Coca Cola Company has a huge market share in the world market.
Coca Cola Company has several brand loyal
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And the control by the government would be on the regulations for purposes of manufacture of their products. Regulatory changes which would lead to change in processes like accounting, tax calculations and laws which are related to environment be it domestic or of a foreign country. These are the some of the political factors of Coca-Cola
Changes in laws and regulations
Changes in non-alcoholic business era
Political conditions, specifically in international markets
Ability to penetrate emerging and developing markets
Economic
During the decline of 2001, the US government took violent actions to turn the economy around by 2002. Coca-Cola took a note of this, and realized that loan interest rates would likely increase as the economy returned. As a result, they took out low-cost loans in 2001 to fund growth in 2002. They used the loans for research and develoment on new products to capitalize on in a strong 2002 economy. Currently, as global growth is slowing, Coca-Cola may be watching for a similar opportunity.
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And these are the threats of new entrants
Advertising and marketing
Customer loyalty
Retail distribution
Fear of retaliation
Bottling network
Supplier bargaining power
The bargaining power of suppliers is also defined as the market of inputs. Suppliers bargaining power influence the cost of the product.
Power is payable to high brand image
The individual buyer no pressure on Coca-Cola
Majority of the population prefers soft drinks therefore buying power is higher
Brand loyalty need to time development
Segment rivalry between industry competitors
The competitors of coca cola are
Pepsi
kik cola
other brands
Threats of substitute products
Other new product keep coming the markets
Price performance
Water with gas
Customers bargaining power
Lot of choice between different brands
Equal price so coca cola needs to have the superior quality
Consumers are brand loyal to the company product
Market Segmentation of coca cola
Our coca cola company has segmented customer according to some categories as stated below
Geographic
Q1 : (Philip,2011) “Marketing environment is consists of the actors and forces outside the marketing department that affect marketing management’s ability to build and maintain successful relationships with target customers” . The marketing environment consists of micro and macro environment . Macro environment have larger societal forces that effect the microenvironment , it includes : demographic , economic , cultural and other forces. The demographic is the study of human populations like : gender , age, location , density and other statistics . The demographic trends have impacted the marketing includes : changing age , population growth and so on , for example , this changing will affect the united airlines decision because demographic
A nation’s culture is affected by several factors, whether it be the language they speak or the clothes they wear. Culture is important to a nation because it gives them identity and something to base their lives off from. In the United States, one business has helped to define their culture, the Coca-Cola Company. Coca-Cola was invented in 1886 by John S. Pemberton in his backyard. He sold his drink to Jacobs Pharmacy in Atlanta, Georgia.
Coca Cola became such a well known American Icon because it was a suitable drink for everyday consumption by people of all ages unlike alcoholic drinks and wasn’t bitter like coffee and tea. Also, Coca Cola was always there during hard times in American like the Depression and the Prohibition period. It became well establish by people that journalist William Allen White declared “it was a sublimed essence of all America stands for…” 31. During World War II and the Vietnam War, wherever the American soldiers landed the Coca Cola Company followed, remained the soldiers of home and boosting their morale. The Coca Cola also made factories wherever they landed establishing themselves in every continent on Earth to every known countries and territories.
A supplier with strong bargaining power has the advantage of charging their price higher or selling low quality of the product to them. The bargaining power of suppliers will be low as there are many suppliers in the market offers similar products and this allows courts to switch to other suppliers that offer lower cost. Intensity of rivalry within industry High Threat Competitors in the industries There are quite a number of businesses involve home furnishing and electrical appliance.
Argos is large retail company that acquires 170 types of products within. Argos have made the change in the online business by giving opportunity to their customer to buy and pay through online. Argos now have been planning to enter Indian market through their furniture product. A critical analysis on the micro and macro environment will be done on this company with marketing planning and possible risk analysis. 2 Environment Analysis for Argos 2.1 Macro Environmental Analysis
In the case study, I would like to use several theories and concepts to analysis the case of Susan. I would briefly analysis the case by using social ecological theory and analysis in detail by using the relevant theories. According to the social ecological theory, the child development is supported by five subsystems, including the microsystem, mesosystem, exosystem, macrosystem and chronosystem (Bronfenbrenner, 1979). Microsystem is related to the child has direct interaction with, including classmates and parents.
Analyze Amazon.com using the competitive forces and value chain models. How has it responded to pressures from its competitive environment? How does it provide value to its customers? a) Competitive forces analysis i) Entry of competitors It is easy for competitors to enter the market by establishing an e-shop and Amazon laid the groundwork for competitors (Flat World Business, n.d).
Age and life cycle can be tricky variables because there are different needs and wants as accord to the age of a person. The main sector in which Coca-Cola Company targets is the youth because there is a much need of refreshment and energizers to cope up with their daily activities. Gender is also an issue needed to be given prior by Coca-Cola. Men and women tend to have different attitudinal and behavioral orientations, based partly on genetic makeup and partly on socialization practices. Coca Cola targets both genders with its wide variety of drinks.
Suppliers are one of the most important elements for any business. The power of the suppliers depends on the volume of suppliers existing in the market and the uniqueness of their products or services. Apple outsources micro-chip from Intel for high processing technology. The power of customer depends on the purchasing volume, availability of substitutes, price sensitivity and buyers’ incentives. The consumers of Apple have a flexible variety of product line from its competitors.
Threat of Substitutes 4. Bargaining Power of Buyers 5. Power vested by Suppliers 1. Competitive Rivalry: According to Porter the competitiveness in any sector is significantly increased by the number of players operating in the field and their major competencies.
Coca-Cola strives to utilize every strategy available to become successful whenever it launches its business in overseas markets. Pepsi seemed to have discovered Coca-Cola’s disadvantages and it was using them to check Coke’s dominance. The new market structure brought about cut throat competition between the two cola giants. However, the competition ate into a large chunk of the two companies’
Pharmaceutical products require various types of organic chemical. There are a number of chemical suppliers present in the market. Instead of buying chemicals at the high cost, pharma companies can switch from one company to other. For specific APIs where the sourcing of raw materials is difficult, suppliers have a higher bargaining power but since most raw materials are easily available and suppliers are numerous, where one can easily replace the other, their bargaining power is low. " Bargaining power of buyer:
This aims at developing a deeper consumer desire for the brand, thus giving people more reason to purchase Coke- Cola products instead of competing brands. This is the essence of differentiation. Coca-Cola having an 'action orientation', instead of waiting for change to happen it is at the leading edge, driving action forward. This product differentiation strategy has created global value, brand loyalty, non-price competitor as well as no perceived
Among them, coca cola’s products are generally made available through intensive distribution. Intensive distribution for the newest product has allowed to maximize contact with customers and become very successful. It usually goes with heavy promotion, lower prices and large target market. Coca cola’s product are mainly distributed in a wide variety of locations including corner stores, convenience stores, restaurants, hotels, shopping mall petrol station and many, many
Bargaining power of suppliers – Moderate. Depending on where along the supply chain a supplier is, his bargaining power varies from low to moderate. There are many suppliers for consumer electronics industry, therefore companies tend to be more elastic. However, if the supplier is unique and provides highly differentiated materials, like Intel supplies its processors, there might be moderate power. In the case of Apple, they contracted with competitors like Samsung and Toshiba that supplied them with components, thus cutting the costs and concentrating on what they do best.