Coca Cola Pest Analysis

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PEST analysis is a popular method that focuses in the external factors of the business and the environment where it operates. PEST stands for Political, Economic, Sociological and Technological. All of them examine the changes in the marketplace. While PEST analysis is the macro environment or external environment, they are the factors which are external that will affect the organization it can be new laws, trade barriers, demographic change and government policy changes etc.
Political Factors: The political environment of Pakistan affects the CoCa Cola beverages and CoCa Cola Export Corporation, to some extent. For instance, the political instability in Pakistan causes trade and import policies to change rapidly as the government
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The bargaining power of commodity ingredients suppliers is low in Pakistan. Most of the raw materials needed to produce concentrate are basic commodities like color, flavor, caffeine or additives, sugar etc and these all raw material easily available in Pakistan. However, in Pakistan suddenly an increasing sugar and packaging material prices, it directly affects the profitability of the Coca-Cola’s products. Coca-Cola does not do any bottling itself. It is done by independent bottlers. One of the bottlers is Coca-Cola Enterprises. This is the largest bottler in the world. It was once independent from Coca-Cola which Coca-Cola held majority shares without controlling power. However, Coca-Cola integrated Coca-Cola Enterprises earlier in 2010. It can have a better control distribution and be quicker to market with products - both key as the company keeps up with people 's changing tastes. As a result, the bargaining power of suppliers is…show more content…
PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power struggle for more than a century. Although Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet Coke, Fanta, and Sprite), However, Coca-Cola has higher sales in the global market than PepsiCo. Brand name loyalty is another competitive pressure. The market share of other competitors is too low to encourage any price wars. 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. While Pepsi has leveraged its worldwide brand-building strength to attach with consumers in significant ways and impel the growth

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