Strategic Analysis Of The Competitive Environment For Coca-Cola

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Coca-Cola is the most famous brand and the largest beverage producer in the world. The company started selling its carbonated soft drinks in the United States but then significantly expanded as a result of entering foreign markets. Currently Coca-Cola operates in 200 countries and owns more than 500 nonalcoholic beverages brands. Such a big success of Coca-Cola is not only caused by its excellent distribution network but also by its strong marketing as the company has made a substantial effort in order to create a positive brand image. Coca-Cola’s mission statement aims to create associations of the brand with happiness and joy as it says: “To refresh the world in mind, body and spirit, to inspire moments of optimism and happiness through our…show more content…
The company intends to achieve it through developing new products, improving business operations and digitising the business. The company is currently conducting their productivity and reinvestment programme, including more intensive media advertising, improvement of the distribution system and standardisation of information and technology systems. Coca-Cola also plans to become more efficient by offering zero-hour contracts to employees (The Coca-Cola company, 2017).

The aim of this essay is to analyse the application of marketing to Coca-Cola and to assess the overall performance of the company. In order to do this, PESTLE analysis, analysis of the competitive environment for Coca-Cola (including Jobber’s competitive analysis tool and Porter’s Five Forces tool) and SWOT analysis will be
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As 70% of Coca Cola’s sales are generated outside USA, the organisation is highly dependent on global economic conditions (Taylor, 2000). Deeper recession may force Coca-Cola to make its supply chain more efficient, to change their bottles and undertake redundancies in order to achieve cost reduction. If taxes on sugared beverages become higher, Coca-Cola may be forced to increase prices, which may in turn negatively affect the demand and consumption (Jacobson and Brownell, 2000). Coca-Cola also uses ‘Think local, act local approach’ in order to set prices according to the local income levels (Weisert, 2001).

The main social factors affecting Coca-Cola are ‘healthy-eating’ movement and increased people’s interest in social and environmental change. The increased interest in healthy lifestyle and diet in Europe has led to a ‘healthy-eating’ movement. This may affect demand for Coca-Cola’s soft beverages considering their high sugar content (Hilliam, 1996). In addition to the healthy eating movement, many environmental and human rights groups organise seminars with the aim of banning Coca-Cola and it has been blamed for damaging the environment and exploitation of labour (Corks, 2004; Raman, 2007; Vedwan,

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