Coca-Cola

Company
ANALYSES OF COCA-COLA COMPANY

RECOMMENDATION ABOUT THE FUTURE OF THE COMPANY

SWOT : Anlisis FODA
SWOT Analysis is a strategic planning tool used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats inside a company, project, or a
business venture. It involves identifying the internal and external factors
that are favorable/unfavorable for business to succeed .
SWOT
POSITIVE NEGATIVE

STRENGHTS WEAKNESSES INTERNAL

1. Brand equity/image &
1. Customer concentration,
recognition
particularly in the US (Wal-Mart
2. Product distribution and
accounts for more than 10%
worldwide network
of Coca Cola's business in the
3. Solid financial performance
US)
4. One of the world's most
2. A lot of loyal Pepsi customers
recognized brand.
are not enough loyal Coca Cola
5. Product diversification
customers
(water, juices, soft drinks,
3. Does not enjoy the number
sport drinks, etc)
6. Innovation one position in India, Pakistan.

SWOT
OPPORTUNITIES THREATS
1. Possible growing
1. Health Drinks Fruit Juice
demand.
Companies
2. Expansion Reaching
2. Key competitors (Pepsi,
all segments.
etc)
3. Globalization
3. Commodity prices growth
4. Catering to Health
Consciousness of People
4. Image perception in certain EXTERNAL
parts of the world.
5. Bottled water growth
5. Smaller, more nimble
6. Acquisitions of smaller
operators/players
players.
PESTLE Analysis
It is a useful strategic tool for understanding market growth or decline,
business position,potencial and direction for operations.
PESTLE Analysis

Trade restrictions- restricciones comerciales

Environmental policies and laws- politicas y leyes
ambientales
Influence derived from the FDA- influencia
derivada por la FDA
Global political issues- cuestiones polticas
mundiales
Standards imposed by the state- normas
impuestas por el estado
PESTLE Analysis
These include interest rates, taxation changes, economic
growth, inflation and exchange rates, governments
spending levels, unemployment, job growth, tariffs,
consumer confidence index and import /export rations.
Economic changes can have a major impact on a
firm's behaviour.
-Higher interest rates may deter investment because it
costs more to borrow
- Inflation may provoke higher wage demands from
employees and raise costs
- Higher national income growth may boost demand for a
firm's products
PESTLE Analysis
The pursuit of healthy lifestyle and increasing
level of consumer health concerns towards
obesity fueled by sugar and carbonated drinks.
The level of consumption of bottled water and
the sports drinks has increased substantially
over the last years.
Coca Cola needs to respond to these needs by
creating a product the healthy public will
respond to.
PESTLE Analysis
Machinery have helped Coca Cola manufacture
products in better and higher quantities.
Packaging design and New equipment
Coca Cola has used social media technology to
connect with audiences.
Creation of app directed to the young public.
The efficiency of a company's advertising,
marketing, and promotional programs
PESTLE Analysis
These are related to the legal environment in
which firms operate.
In recent years around the world there have been
many significant legal changes that have affected
organizations behaviour.
For example the introduction of age
discrimination and disability discrimination
legislation , an increase in the minimum wage and
greater requirements for firms to recycle are
examples of relatively recent laws that affect an
organizations actions.
PESTLE Analysis
Coca Cola is affected by water accessibility. Water is
necessary for soft drink development. But should something
happen, like climate change, the company may be under fire.

Coca Cola has to adhere to environmental laws as they

manufacture their products. If anything is amiss, it can affect
how they distribute products or stop production completely.

In Peru, Coca-Cola said it replenishes 100% of the water it

uses in its products and production processes since 2015
For example: Oxapampa

En Per, Coca-Cola repone

el 100% del agua que utiliza
en sus productos y procesos
de produccin desde 2015
PORTERS FIVE FORCES MODEL
The Porter's Five Forces tool is a simple but powerful tool for
understanding where power lies in a business situation.
Five Forces Analysis assumes that there are five important forces
that determine competitive power in a business situation.
Supplier Diversity Customers could
Program that promotes start drinking coffee
diversity among instead of Coke.
suppliers, decreasing the Also freshly made
bargaining power of each smoothies or fresh-
individual supplier. pressed juices

Insignificant. This power is fuelled

The global market of by the availability of
carbonated drinks is great choice of cola
highly saturated beverages.
New entrants cannot Demand leads the
benefits from the purchases, butCoca-
economies of scale Colaalso has to keep
extensively exploited by an eye on what that
existing market players. end price will be
6-W Model
Who are our current and potential customers?

Its a product that is directed to any person, wether high or low class.

What do our customers do with our products?

They drink it, use it to cook or they can sell it.

Where do our customers purchase our products?

They can buy it in any store, supermarket, restaurants, etc Currently

you can find it in 200 countries around the world
6-W Model
When do our customers purchase our products?

Everytime that one costumer want to drink but they can purchase it
during the time that the store is open.

Why (and how) do our customers select our products?

Coca cola is one of the most known brand in the world, any person who
think about a soda, Coca Cola automatically comes to his mind, also the
taste is so special and the price is lower that other soda that result attractive
for any person.

Why do potential customers not purchase our products?

The product contains large amounts of sugar and other ingredients that
can be dangerous for person who has sickness like diabetis, etc.

Brand loyalty, people could prefer other brands products.

 Fuerte presencia global Embotelladores con licencia
Strong global presence Licensed Bottlers
Publicidad y
High
diferenciacin
Advertising utilization
and of fixed
differentiation assets

Amplia lnea de
productos Reconocido nombre
Breadth of de marca
product Well recognized and
line cherished brand
name
Retail and
Product innovation
distribution
capabilities
network
Capacidades de innovacion de producto
STRATEGIC GROUP MAP
KEY SUCCESS FACTORS
1. Size of Company (tamano de la compana)
The companies' size is an important factor in
such a leader in the industry as well as one with
the largest market share.

2. Location (localizacin)
Convenience for customers is also essential in a
soft drink industry. Such that a company must
make sure the soft drink is readily available
everywhere in supermarket, grocery stores,
vending machines, and restaurants.
SPACE MATRIX
The SPACE matrix is a management tool used to analyze a
company. It is used to determine what type of a strategy a
company should undertake.
The Strategic Position & Action Evaluation matrix or
short a SPACE matrix is a strategic management tool that
focuses on strategy formulation especially as related to the
competitive position of an organization.
Space matrix
Space matrix

The particular SPACE matrix tells us that Coca Cola Company

should pursue an aggressive strategy. Coca Cola Company has
a strong competitive position in the market with rapid growth.
Internal Factor Evaluation

According to the analysis ofIFE, the score of Coke is 2.24, which is below
average. This shows thatCoca-Colaisntgood enough.Byusingtheirstrengths,
they can overcome their weaknesses.
External Factor Evaluation

Based on the above calculations it has been concluded that the companys Total Weighted
Score is 2.77which shows that the company is successful in utilizing its opportunities and
minimizing the threats around it.
External Factor Evaluation

COCA
COLA

Coca Cola is located in the 5th quadrant of the matrix,

so they have to hold and mantain their strategy.
RECOMMENDATION ABOUT THE FUTURE
OF THE COMPANY
THANK YOU FOR YOUR
ATTENTION