Presentation on theme: "INTRO The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Coca."— Presentation transcript:
INTRO The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Coca Cola products bearing the company’s trademark are now being sold in 200 countries around the world. The company owns or license more than 450 brands. As a company that operates in more than 200 locations around the world
CO BRANDS OF COCA COLA LA Energy Drinks Coca Cola’s brands of Energy Drinks contain Healthy ingredients which help you vitalize Juices/Juice Drinks Coca Cola’s more than 20 juices, offering both adults and children nutritious, refreshing and flavorful beverages. Soft Drinks soft drinks from The Coca-Cola Company are both icons and innovators in the beverage industry.
Sports Drinks Carbohydrates, fluids, and electrolytes team together in Coca Cola’s Sports Drinks, providing rapid hydration and terrific taste for fitness-seekers at any level Tea and Coffee Bottled and canned teas and coffees are satisfying both traditional tea drinkers and today's growing coffee culture Water Smooth and essential, our Waters and Water Beverages offer hydration in its purest form. CONTD …..
3–5 Components of Internal Analysis Leading to Competitive Advantage and Strategic Competitiveness
KEY CRITERIA OF RESOURCES AND CAPABILITIES VALUABLE Size Intensive distribution Deep pockets COSTLY TO IMITATE Brand Image Product testing in every individual market.
CONTD….. RARE No it is not rare. Product testing in every individual market. UNSUBSTITUTABLE Anything that substitutes coke is a threat like water, lassi, sugarcane juice, coconut water etc.
COMPETITION Perhaps a big reason why coca cola continues to implement product innovation is because of the intense competition in the non-alcoholic beverage industry. In order to remain competitive and to maintain its leadership position, Coca cola introduces innovative products that create value for the customers and shareholders. The nonalcoholic beverages segment of the commercial beverage industry is highly competitive. Coca cola competes with major international beverage companies that, like coca cola operate in multiple geographic locations, as well as numerous firms that are primarily local in operation. In order to withstand competition form numerous rivals, coca cola uses its resources in creating new products
OUTCOMES FROM COMBINATIONS OF THE FOUR CRITERIA Valuable? Rare? Costly to Imitate? Nonsubstitutable? Competitive Consequences Performance Implications No Competitive Disadvantage Competitive Disadvantage Below Average Returns Below Average Returns Yes No Yes Yes/No Competitive Parity Competitive Parity Average Returns Yes No Yes/ No Yes/ No Temporary Com- petitive Advantage Temporary Com- petitive Advantage Above Average to Average Returns Yes Sustainable Com- petitive Advantage Sustainable Com- petitive Advantage Above Average Returns COCO - COLA
PEST ANALYSIS P-Political change from one party to another. Factors- 1)Changes in laws and regulation. 2)Changes in non-alcoholic business environment. 3)Political condition. 4)Ability to penetrate developing and emerging market
PEST ANALYSIS E-Economic change(changes in economy) Factors- 1)Lowering of interest rate. 2)Recession. 3)Unemployment rate. 4)Expectation of lower inflation.
PEST ANALYSIS S-Social change(changing attitude and lifestyles) Factors- 1)US citizens practicing healthier lifestyles. 2)Increase in Time management. 3)Increase need for bottled water. 4)Concern in society about nutritional value.
PEST ANALYSIS T-Technological change(new product, product improvement) Factors- 1)New technology of internet and television. 2)Introduction of cans and plastic bottles. 3)Introduction of new machinery. 4)Development of diet cola. 5)Top product quality and speed delivery.
Economies of Scale Product differences Cost advantage Brand identity
Brand loyalty Price of substitutes Buyer propensity to substitute
Buyer concentration Buyer information Brand identity of buyers Price sensitivity
Supplier concentration Presence of substitute inputs
Industry growth rate Diversity among competitors Exit barriers Product differentiation
Support Activities:- Human resource management Technology development Procurement
STRENGTH Strong Brand Equity Global presence Strong distribution network Low cost of operations Wide range of products WEAKNESS Health problems Product line limited to beverages Customer concentration
OPPORTUNITIES Health segment Bottled water growth Smaller players acquistions Untapped potential in developing countries THREATS Health drinks Commodity prices growth Small/local players Sluggish growth of carbonated beverages
MERGERS & ACQUISITIONS Thums Up Barq’s Inc – Many Bottling Companies. Mid River Traders Ltd - teas, juices and carbonated soft drinks Seagram's mixers business from Diageo and Pernod-Ricard Glaceau – Fanta Sprite