The changes in these regulations, changes in non-alcoholic business environment in the form of actions by the competitors, political conditions in the international markets where the firms would like to penetrate are some of the important factors that affect the industry.
When the US economy is stronger and progressively growing the industry would do well. Contrastingly when the economy is under a recession having a negative GDP growth the consumer spending will get reduced and it will have a serous impact on the beverages industry as well. Increase in rates of interest and depressing business moods in general will have an adverse impact on the growth of the industry.
Changes in styles and attitudes of consumers will have their impact on the sustenance of the growth of any industry especially the non-alcoholic beverages industry. For instance, many of the US citizens have become health conscious and are more inclined to follow a healthier life style. Consumers in the age group of 38 to 65 are also more concerned with nutrition and the effect of their eating and drinking habits will affect the sale of non-alcoholic beverages.
Technological changes that create opportunities for new products and product improvements and new marketing techniques of internet and e-commerce would have a positive impact on the industry and its growth. The effectiveness of the advertising, marketing and sales promotional programs with technological improvements will definitely impact the sale of beverages like Coco Cola. (Purdue) Technological advancement in the information and communication field can also be seen as a distinct opportunity for the company to employ improved manufacturing technologies like Computer Aided Designs and greater improvements in the distribution arrangements can also be attained. (PepsiCo Five Year Marketing Plan)
Changes in legislative regime dealing with taxation, corporate affairs and accounting and disclosures can affect the progress of the industry in serious ways. Especially when the major market share is held by Coca Cola and Pepsi there are chances that changes in the legal provisions affect these firms to a large extent.
Stricter environmental regulations may affect Coca Cola and other players in the industry as these firms create a lot of toxic waste and the disposal of the wastage would create problems for the firms. Other environmental regulations may also affect the operations of the firm in the industry.
Five Force Analysis
Using Porter's Five Force analysis the competitive position of the firms in the beverage industry can be studied.
Barriers to Entry - Low
Large spending requirements for advertising, creation of a brand image and brand loyalty, higher margins payable to the retailers for retail shelf space, and fear of retaliation from the large players like Pepsi and Coco Cola act as deterrent to new entrants. Hence the intensity of this force is low.
Bargaining Power of Suppliers - Low
Most of the ingredients are common items like sugar, color, flavor, additives and packaging and there are too many suppliers who would like to cater the requirements
The Coca-Cola Company is the world's biggest drinks company, controlling more than half the global market in carbonated soft drinks as well as a substantial chunk of the non-carbonated segment." (adbrands.net) Through PESTLE analysis the impact of changes taking place at a macro economic level on any market/industry caused by Political, Economical, Social, Technological, and Legal and Environmental factor can be reviewed.
Coke has been easily termed as junk food that contains empty calories which contribute towards the number of obese in the world. With the consumer concern growing, governments may be forced to take action against Coke and other junk foods.
This research discussed various factors that affect planning of strategies for the company using SWOT and PESTEL analysis. The paper will also discuss various strategic analysis tools and how they are used to indicate the progress of aims and objectives set by coca cola Company. Major stakeholders are also discussed and how they influence organization strategy.
Coca Cola is among the most successful multinational companies in the world. The company has its operations in more than 200 countries. Coca Cola also generates 80% of its operational revenue from commerce outside the United States. Being the most famous brand worldwide, Coca Cola has come a long way since its invention in 1886.
This report provides information about the factors that erode the profitability of the Coca-Cola Company, her economic power to charge higher prices and the strategies the company has employed to remain competitive in the ever changing global economy. The information is for the management of the coca-cola company to help them in proper and logical decision making.
Coca-Cola has entered in the Indian market in the year 1970 and it is regarded as the first multinational soft drink company in India. Until 1977, the company was prominent brand of soft drink products in India. However, because of policies enacted by ‘Foreign Exchange Regulations Act’, the company left the business in India.
Coca-Cola has a strong market presence in the soft drink industry and has been continuously introducing various new products to satisfy the needs of their existing customers as well as attract new customers. Through acquisition of local soft drink products and their various marketing strategies, they have been strategically gaining competitive edge and strong local market presence.
Muhtar Kent. The stocks of the company are listed in the New York Stock Exchange .The Company is rated as one of the largest companies in United States of America. It has been in operation for the last 130 years producing over 400 different kinds of brands for its customers.
“Culture refers to the shared assumptions, beliefs, values and norms, actions as well as artifacts and language patterns.” It is knowledge that is acquired through time by company workers that in turn form the modus operandi or way
It is the world’s leading soft drinks manufacturing company which operates its business in more than 200 countries of the world. For more than a century the company continues through depression, prosperity,
The author states that the success of the Coca Cola Company is facilitated by the drivers for supply chain improvement. One driver for supply chain improvement used by Coca Cola Company is the facilities used by the company. The company offers contracts to bottling companies in countries where it does not have manufacturing subsidiaries.
12 pages (2750 words)Essay
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