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ENVIRONMENTAL

ANALYSIS OF COCA-COLA

Submitted to: Prof. Hemraj Verma

Submitted by: Neeshu Yadav Toshi Singhal Satbir Kaur

Internal Environment
STRENGTH: 1. Coca-cola is the worlds most valuable brand and has strong brand loyalty. 2. Wide variety of coca-cola products is sold in the restaurants. 3. Coke is the dominant market leader of the global soft drink industry right through the 20th century. 4. Coca-cola has the heavy advertising and promoting activities. 5. More than 70% of revenue comes from outside the united states. 6. Coca-cola has enormous distribution and production facilities of nonalcoholic beverages and related products. 7. Coke primarily competes on advertising and differentiation and has the high market share.

WEAKNESS: 1. New coke formula leading to a backlash which results in bad image of coke. 2. Product offering is restricted to beverages. 3. Coke has taken less aggressive market standing in todays changing economic surroundings. 4. Decline in cash from operating activities.

External Environment
OPPORTUNITIES:

1. Bottled water drinking has increased 11%. 2. Consumers prefer to drink new smaller beverage products that are not sold on a mass scale. 3. One of the best opportunity is to diversify into the non-carbonated drinks such as coffee, water, juices etc. 4. Diversify into complementary food products which will ultimately increase the drink consumption. 5. Coca cola should increase its partnership with fast food chains.

THREATS:
1. 2. 3. 4. 5. Low growth rate in carbonated drinks market in North America which is the main market of coca cola. Huge number of substitutes such as beer,water,juices,coffee etc are accessible to the end users. Pepsi is the competitor which competes with advertising and differentiation. The prices of raw material such as sugar and metals used in manufacturing of cans are increasing rapidly. Coca cola is facing various regulations in respective countries around the globe.