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Coca Cola Case Study
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No Downloads. Views Total views. Actions Shares. Embeds 0 No embeds. No notes for slide. K Rangarajan Submitted by Group: 1 2. All five brands combined, held a market share of over 42 percent in the U. Especially to be emphasized is the performance of the carbonated soft drink Coca- Cola, which accounted for a U.
Additionally, the soft drink brand had the second highest number of fans on its Facebook site. The company owns, among others, the soft drink brands Pepsi and Mountain Dew and the sports drink Gatorade, which were ranked second, third and fifth in the market share ranking of LRB. Concentrates Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world.
Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. There are all types of beverages out there forconsumers to purchase. There are numerous companies out there that sell water, juices, energy drinks, carbonatedbeverages,andteas.
Whena customer walks down an aisle at a grocery store there is usually an aisle full of different types of beverages that they can purchase. There is an aisle just for carbonated beverages and then there is another aisle for water, juices, energy drinks, and tea. They have over a hundred different choices to make andseveral different brands to choose from.
Most of them are also aroundthe same price point, thus the customer chooses whatis their most favorite. Competitive Rivalry The competitive rivalry within the beverage industry, particullarly in soft drinks, is extremely high for COKE. Large competitors such as Pepsiand the Dr. Pepper Snapple Group both have a world-wide presence and are extremely competetive over every fraction of market share.
Many of these companies are consistently finding new ways to introduce new products to the beverage industry including soft drinks, sports drinks and energy drinks. There is a history within the industry of intense product line buyouts and as the worldmarket becomes more accesible,rivalry will continue to grow withinthe industry.
Bargaining power of buyers The bargaining power of one buyer is low.
A Global Business: The Coca-Cola Company
If one customer switches brands, for example fromCoca-Colato Pepsi,it is not going to have a huge affect on the company. One customer is usually not purchasingmillions of dollars of Coca-Colaproducts a year. They are only purchasing aroundseveral hundred dollars worth. If Coca-Cola were to raise their prices than a customer couldjust easily switchto another brand because there are several other choices that they are able to choose from.
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However,as a whole if customers were not satisfiedthenit could do major damage to the company. Currently,there are 1. CCBCC is also taking the initiative of constantly innovating their bottling methods and methods of distribution. This dedication to innovation will surely guard their profits from any future price spikes from suppliers within the industry.
Threat of New Entrants There are not very many barriers to entry in the beverage industry. It is easy fora company to start theirowncompany andsell beverages to customers.
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However, it may be difficult to standout because there are already so many different brands and products of beverages out there forcustomers to choose from. The per capita soft drink consumptionrate is the highest forCoca-ColaBottling Company Consolidatedinthe world. Inaddition, it has a consumer base of over eighteen millionpeople. Strong marketing and advertising 4. Most extensive beverage distribution channel 5. Customer loyalty 6. Bargaining power over suppliers 7. Corporate social responsibility 1.
Bottle water consumption Growth. Increase in demand of healthy food and beverages. Growing Beverages consumption in emerging markets.
Growth through acquisition. Significant focus on carbonated drinks 2.
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Undiversified product portfolio 3. High debt level due to acquisitions 4. Negative publicity 5. Brand failures or many brands with insignificant amount of revenues 1.
Changes in consumer preferences 2. Water scarcity 3. Strong dollar 4. Legal requirements to disclose negative information on product labels 5. Decreasing gross profit and net profit margins 6.
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