Countries are diversify in terms of culture and tradition, this element have to be
absolutely analyse before introducing marketing and introducing products. CocaCola Company has about 3300+ different products, in penetrating new market
after intensive market analysis the Company start by introducing few of their
products based on the social factors of the general population subsequently
increasing products based on social factors.
Consumers and government are very cautious on the issue of health and safety,
in beverages industries obesity is the most common concern of the general
public. This concern is mostly raised by younger generations so as to maintain
good physique. According to a study consumers of Coca-Cola are very concern
with nutritional content nowadays. This is one threat that the management was
able to turn into opportunity by introducing dietary products such as Coca-Cola
Zero, Light Coke and Diet Coke.
In a non-alcoholic beverages company, most of the market share comes from
youth and children, which is why population growth is being given high emphasis
in market analysis and being one of the major factor of social analysis.
TECHNOLOGY:
Technology plays several functions in beverages industry as with
manufacturing new products, packaging product and distribution of products.
the
Coca-Coca Company rely on its bottling partner for packaging, 83% of case
volume produce across the world is being manufactured by bottling partners
which the company dont have total control power over. This is why its essential
for the company to keep a healthy relationship not just with its bottling company
but within and outside the entire departments companies involve.
The availability of different Coca-Cola packaging has everything to do with the
advance in technology, various vending machines are available all over the world.
This let to the production of some stylish non-refillable bottles and cans, which are
trending among youth and attractive to children which also serves as a marketing
tool for promoting products.
LEGAL:
Legal laws includes, employment law, antitrust law, customer law, health and
safety law and discrimination law to mention few.
Various acts and regulations exist in the United State of America some of which
includes Federal Food Act, Federal Trade Commission Act, Drug and Cosmetic Act,
health and safely Act apart from the upper mentioned Acts several environmental
regulations are being implemented within the State some of which include,
regulations on advertising, sales and production. Slight alteration in either of the
laws, regulations or act could yield to positive or negative impact on the company.
Furthermore, violation of any of the upper mentioned laws, acts, or regulations
will escalate serious penalty which will definitely affect the company.
SWOT ANALYSIS
According to Berry (2014) SWOT is mnemonic representing Strengths,
Weaknesses, Opportunities and Threats which are considers to be internal and
external factors some of which the company has control over and some of which it
has no control over. This analysis is been used as a tool of auditing of generally
strategic position of an organization.
The factors can be overviewed as follows
Strengths: These are qualities of an organization that facilitate that support the
organization to achieve its mission. These qualities could be what the organization
is versed on or expertise on, these includes individual and team quality of
employee, the diverse qualities that distinguished the organization from its
competitors. Strengths of an organization can be on its brand, financial resource,
human competency, products/services to mention few.
Weaknesses can be regards to the attributes the prevent an organization from
achieving its mission or operating effectively, these weaknesses hinder the
growth and success of the organization. Weaknesses include poor machinery,
ineffective decision-making, deficient research and development capability etc.
Opportunities are usually presented by the external environment within which the
organization operates to take advantage of, when opportunities arise its expected
for an organization to strategized on how to take advantage of it be its in
profitability, brand, customer loyalty, product/service recognition, penetrating new
market etc.
Threats are also attributes presented by external environment, attributes that
have the tendency of jeopardizing the organization. This are sometimes being
mistaken for weakness, but threats are external while weakness are internal
within the organization example of which includes technological changes, increase
in competition to mention few.
SWOT ANALYSIS FOR COCA-COLA COMPANY
Jurevicius (2013) in a site conducted a detailed SWOT analysis of the Coca-Cola
Company using so many factual statistics and evidences in validating the
analysis. As mentioned earlier SWOT analysis comprises of Strengths, weakness,
opportunity and threats, where the strengths and weakness are considered to be
internal factors while the opportunities and threats are the external factors
influencing the company. This will be discussed in details below.
STRENGTHS:
1. Worlds foremost brand: Coca-Cola as a brand is consider to be the global
leading brand, in the year 2006 an international branding consulting firm
ranked Coca-Cola number one brand on the hierarch of top 100 global
brand in the same year week-inter-brand valued the brand at $67,000,000.
The brand is racked far above it competitors in the beverages industry, the
brand following it in the beverages industry is Pepsi which was ranked
number 22 with brand value of $12,690,000. Moreover, aside from being
the number one brand, it owns the top four beverages brand in the world
that include Fanta, Sprite, Coca-Cola, and Diet Coke. This is why the Cocacola brand posses the largest portfolio of product brand in the beverages
industry. This advantage is what the company look at in introducing new
brand example of which are Vanilla Coke, Cherry Coke, and Limon Coke.
Coca-Cola Company heavily invest in promoting the brand over the years,
this is one major advantage the Company uses in penetrating new market
meanwhile strengthening existing markets.
2. Large scale of operations: In the whole world Coca-Cola Company is the
largest beverages company operating with more than $24 000,000,000
(twenty four billion USD), it manufacture, market and distributes its
product in more than 200 countries with approximately 52,000,000,000
(fifty two billon) consumed everyday. The company account for more than
1.4 billion USD in beverages bearing trademarks. These operations are
being supported by strong infrastructures with 32 high standard
manufacturing plants distributed across the world along with 95 bottling
and canning plants outside the United State. In addition the company also
produce bottle water and concentrates juice. This advantage enable the
produces it in different flavors so also other products, which include Capri Sun,
Friutiser, monster Appletiser and some sparkling fruit juices.
The strategic management policy of the Coca-Cola Company focused toward
imprisoning the national and international market for the purpose of quality
improvement, developing strength in the international market at the same
time holding accountability of environmental strategy on the ground of
business operations, performance management and developing environmental
standard in an international scale. There is a rapid change in the economic
environmental structure over the years; in the year 2005 there was high
marketing strategy that was why distribution of products was being done
through advertising campaign. This got success and yield to 35% increase in
international sales force in the year 2006 while in the preceding year sale
strategy was included through promotion techniques in the international
market which also yield to an increase in sales with 39.5% more than the
previous year.
Globalization:
As defined by McGrew (2014) in the general scale globalization is a way of
eliminating the difference between different countries, continent and economy
so as to make it easier to trade and conduct transactions within and between
every nations there by putting the whole world under the same umbrella
called GLOBALIZATION. This process has been going on over a century
particularly in the 1945, but the process has been moving on a slow rate until
in the last 20 year when it became much more faster due to development and
order forces which will be discuses letter on.
Brief history of Globalization
According to James and Peck (1998) Globalization started in the 17 th century
with the inventions of new ships which gave Europeans avenue to trade with
other centuries on a large scale, comparing to agriculture trade was still a tiny
part of the economy as of then. With the recent development and innovations
in transport sector such as rails, steam ships and Airplanes. These
developments contributed hugely in the sense it shrinks the world and make it
more convenient and faster for people to travel across the world and carry out
trade, with the presence of the Internet it makes it even much more easier to
communicate internationally. Decline in barriers to trade between different
countries increase international trade that makes the worlds GDP increasing
in a steady rate.
Benefits of Globalization
Increase in economic integration can be seen to be on of the major benefit
gain from the umbrella term Globalization as asserted by Jeffrey (2003).
Economy used to be self-contained in the sense that import and export are
mostly independent but rather now with integration between countries
economies are closely dependent in the sense that importing raw materials for
a production. This is why recession in an economy of ones country affect the
others. However, consumer markets are considered to be more important in
the economy, as there is convergence globally in customer tastes and
purchasing habit. Hence, businesses operate and productions are mostly on
global preference example is Coca-Cola. Companys operating in that scale are
known as multinational companies, these companies have been existing in
small number until recently with the advance in technology and they have
brought a great positive change to world GDP as mentioned earlier.
faced
by
organisations
operating
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company can not satisfy his/her desired product they will eventually switch to the
other sources. Hence, for any company or organization to endure its market
competition they need to put in their best in given customers what the desired
because customers are no longer loyal.
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