The North American Industry Classification System (NAICS) code for the Coca-Cola Company is 3121 (U.S. Census Bureau, 2012). This NAICS code is used to identify Soft Drink Manufacturing. However, the icon Coca-Cola is not in this industry alone. The data of 2002 identifies 2,908 competitors in this category (U.S. Census Bureau, 2002). This NAICS code encompasses establishments primarily engaged in manufacturing soft drinks and artificially carbonated waters. Although Coca-Cola has made its global footprint as a leading competitor in this market and they continue strategizing for long-term sustainable growth, Coca-Cola is innovative in their methodology and application to maintain one-step ahead of their competitors and is aware of the market’s increasing demand of product substitution.
The Coca-Cola Company, now over 125 years in existence, continues to maintain its competitive stance in the global market of beverage consumption. The goliath company’s continued growth may be demonstrated by its ability to 1) identify global awareness of market trends and consumer demand, 2) identify and comply with environmental and regulatory requirements/enhancements, 3) analyze the impact of innovative projects and identify how these external influences directly impact the strategies implemented thus reducing competitive rivalry and competitors ability to take the lead in product substitution.
Threats of Competitive Rivalry
Two major detriments to Coca-Cola’s strategy of expansion into non-carbonated beverages may be the impact of society’s recent economic uncertainty and increased health awareness. Such beverages may be considered luxuries. Although pricing might be competitive, in today’s economic uncertainty individuals may prefer a variety of beverages that offer better nutritional value vice purchasing Coca-Cola’s soda beverages. It is my opinion; Coca-Cola has strategically identified this possible impact by expanding their product line to include over 3,500 beverages in their portfolio to include coffees, energy drinks, juices, sports drinks, teas and waters (The Coca-Cola Company, 2010). Michael Porter believes the competitive edge one company has over another is its ability to think about the company on a broader level (HarvardBusiness, 2008). This ability allows companies to communicate their strategies with employees, stakeholders and even competitors. The expectations, rules of engagement, and deliverables are made clear. One may ask why competitors should know the competitor’s strategy. The answer to that may be if they know exactly what it is you have to offer and how you are going to deliver the product they may defer their quest to compete and seek competition elsewhere. It is my feeling transparency is also complimentary to supporting industries, citizens and agencies. Such sub-groups as transportation, where housing, bottling distributers, environmental agencies, and skilled personnel can complement the organization if such subgroups can promote services that support the organization. Transparency in a successful organization is also reflective of its quality selection of such sub-groups. This could also lead competitors to believe the best of the best have already defined their loyalty by providing services and collaboration with its competitor of choice. Defending its reputation of being a globally responsible leader in the beverage market, Coca-Cola has taken large strides in addressing obesity. Coca-Cola prides themselves on their efforts to support these health concerns providing positive involvement by defining six commitments. These six commitments include, using evidence-based science, innovated development, educating consumers, provide transparent nutritional content, market responsibility to include parent/caregiver information of products, and promote healthy living by collaborating with...
...External Environment Analysis
Trident University International
MGT599 Mod 2 Case
In this section of the company analysis we will be examining several of the external factors present in the Coca-Cola Company’s environment. We will conduct a Porter’s 5-forces analysis, a PEST analysis which will include a look at political, economic, social, and technological factors, and will show how the Coca-Cola Company has a solid grasp on its place in the market along with its major competitor.
Coca-Cola Refreshments USA, Inc. is located in Atlanta, Georgia. The Company’s North American Industry Classification Code (NAICS Code) is 312111, Soft Drink Manufacturing. (Manta, Inc., 2012)
Porter 5-Forces Analysis
Threat of New Entrants (low threat): This threat is quite low in the soft drink manufacturing industry as the cost of entry is very prohibitive. Coca-Cola has the financial means to snuff out nearly any attempt by a new company to enter the market, and Pepsi-Cola – their largest competitor - would quickly team up with Coca-Cola to help with that effort.
Both companies have invested hundreds of millions of dollars over the years to create brand loyalty, and both have made huge...
FIN560 Securities Analysis Course Project: Stock Analysis- The Coca-Cola Company (KO)
The Coca-Cola Company manufactures, markets, and sells nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. Its sparkling beverages include nonalcoholic ready-to-drink beverages with carbonation, such as carbonated energy drinks, and carbonated waters and flavored waters. The company’s still beverages comprise nonalcoholic beverages without carbonation, including noncarbonated waters, flavored and enhanced waters, noncarbonated energy drinks, juices and juice drinks, ready-to-drink teas and coffees, and sports drinks. It also provides flavoring ingredients, sweeteners, beverage ingredients, and fountain syrups, as well as powders for purified water products. In addition, the company licenses its technologies to suppliers and third parties. The Coca-Cola Company sells its products primarily under the Coca-Cola, Diet Coke, Coca-Cola Light, Coca-Cola Zero, Sprite, Fanta, Minute Maid, Powerade, Aquarius, Dasani, Glacéau Vitaminwater, Georgia, Simply, Minute Maid Pulpy, Del Valle, Ayataka, Bonaqua/Bonaqa, and Schweppes brand names. The company offers its beverage products through a network of company-owned or...
Being the leading manufacturer, distributor and marketer of non-alcoholic beverages in the world, Coca-Cola has a strong brand recognition and brand portfolio. The company owns more than 400 brands, including sports drinks, teas, juices, and energy drinks. Coca-cola operates in more than 200 countries, with 75% of profits coming from abroad (Hoover, 2009). The company ranks well ahead its closest competitor Pepsi, with brand equity of $67 billion compared to Pepsi’s $13 billion. However, Coca-Cola is threatened by intense negative publicity and sluggish performance domestically.
• Global recognition, the world’s leading brand of carbonated soft drinks
• Fast growth internationally
• Strong manufacturing and distribution channel
• Consumer loyalty
• Sluggish performance domestically
• Slow response to customers’ evolving tastes
• High turnover rate
• Continuous international expansion
• Changing demographics of the US, new target markets
• Growing market for healthy drinks
• Smaller regional competitors struggling to exist
• Intense competition
• Slow growth in market for carbonated beverages
• Economic downturn influencing consumers’ purchasing power
• Evolving consumer preferences
• Negative publicity
Coca-Cola has a 90% brand recognition world-wide. The...
...Coca-Cola has strong brand recognition across the globe. The company has a leading brand value and a strong brand portfolio. Coca-Cola is the leading brands in the top 100 global brands ranking in 2012 (Interbrand). Interbrand also valued Coca-Cola at $67,000 million. Coca-Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690 million. Furthermore; Coca-Cola owns a large portfolio of product brands. The company owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta. Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry Coke and Coke with Lemon. Over the years, the company has made large investments in brand promotions. Consequently, Coca-Cola is one of the best recognized global brands. The company’s strong brand value facilitates customer recall and allows Coca-Cola to penetrate new markets and consolidate existing ones.
With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Coco-Cola is selling...
...SWOT analysis of CocaCola
This is a CocaCola Company SWOT analysis for 2013. The original analysis can be found at CocaCola SWOT analysis. For more information on how to do SWOT analysis, please refer to our article.
Name | The CocaCola Company |
Industries served | Beverages |
Geographic areas served | Worldwide |
Headquarters | U.S. |
Current CEO | Muhtar Kent |
Revenue | $ 48.01 billion (2012) |
Profit | $ 9.01 billion (2012) |
Employees | 146,200 |
Main Competitors | PepsiCo Inc., Dr Pepper Snapple Group, Inc., Unilever, Groupe Danone, Kraft Foods Inc., Nestlé S.A. and others. |
The Coca Coola Company is the largest beverage company in the world serving more than 200 countries and offering more than 500 brands.
You can find more information about the company in its official website or Wikipedia’s article.
CocaCola SWOT analysis 2013 |
Strengths | Weaknesses |
1. The best global brand in the world in terms of value ($77,839 billion)2. World’s largest market share in beverage3. Strong marketing and advertising4. Most extensive beverage distribution channel5. Customer loyalty6. Bargaining power over suppliers7. Corporate social responsibility | 1. Significant focus on carbonated drinks2....
...Coca-Cola (KO) AnalysisCoca-Cola Corporation and its Competitors
Coca-Cola was discovered as a result of an accident. In 1886 a pharmacist named John Pemberton cooked up medicinal syrup. When he was done, he figured he had created a fine tonic for people who were tired, nervous, or plagued with sore teeth. He and his assistant mixed it with ice water, sipped it, and proclaimed it tasty. They wanted some more, and the assistant accidentally used carbonated water to mix the second batch. Instead of medicine, these men had created a fizzy beverage - one that is now consumed around the world. Today people guzzle 1 billion drinks a day from the Coca-Cola Company. But this new beverage was not an instant success. In the first year, Pemberton spent $73.96 promoting his new product but managed to sell only $50 worth.
"The Coca-Cola Company" is now the largest soft drink company in the world. Every year 800,000,000 servings of just "Coca-Cola" are sold in the United States alone. The company takes pride in being a worldwide business that is always local. Bottling plants with some exceptions are locally owned and operated by independent business people who are native to the nations in which they are located. The company manufactures, distributes and markets non-alcoholic beverage concentrates and...
“Coca-Cola and Shasta.” These two products are in the same industry and both were
invented around the same time. Nonetheless, a very different perception comes to consumers‟
mind when they hear these two words. In the 21st cent ury, Coca-Cola is considered one of the
most valuable brands in the world, whereas Shasta is mostly known in United States, particularly
in the West Coast region.Coca-Cola is owned and operat ed by The Coca-Cola Company, and
Shasta is currently owned by National Beverage Corp. This report will examine, compare, and
analyze both companies in terms of operation, promotion, management, and finance. In addition,
SWOT analysis and Porter‟s Five Forces will be conducted to evaluate the companies‟ positions
in the industry. The report will also identify several issues that both companies currently face and
suggest alternatives and recommendations in order assist Shasta, a subsidiary of National
Beverage Corp., to gain more market share. Table 3 exhibits that National Beverage Corp. makes
up only about 2.8% of the soft drink industry in 2010.
Dr. John Pemberton, a pharmacist from Atlanta, invented Coca -Cola in 1886. The
world‟s largest non-alcoholic beverage company trademarked its name and logo in 1893. After
thirty years of establishment, the...
...The CocaCola Company- Branding Strategies
Coca-Cola is one of the most recognizable brands around the globe. The history of Coca-Cola began over a century ago since 1886. Today Coca-Cola sells products in over 300 countries world-wide, and has over 3,000 different beverages. The brand is familiar to people all around the world, and is available in many different varieties. The company takes pride in the development of unique marketing strategies, which have allowed growth and access to various places throughout the world. Their extremely recognizable branding is one of Coca-Cola's greatest strengths and the simplicity of its bottling is a part of a great marketing strategy (Spring,2002). Coca-Cola makes money primarily from selling their very famous cola, allowing many across the globe to share the experience.
Coca-Cola’s desired outcome from their marketing communications program is to move from creative excellence to content excellence. The purpose of their content excellence is to create ideas so contagious it cannot be controlled in terms of business objectives, brands and consumer interest, all linked together. They developed a conversation model that begin with brand stories that create the linked ideas which provoke conversations that need us to act and react to 365 days a year....