Coca Cola Macro Environment Analysis

2009 Words 9 Pages
2.1 Micro and macro environmental of COCA-COLA

Micro business environment is the internal environment of the organization and the main environment in which management functions. The micro environment affects the organization straight. Its most closely connected to the business .micro environment mainly reflects by strengths, weakness opportunities, threats (SWOT).

The SWOT analysis of Coca-Cola

Our coca cola company’s strength
 Our company is the one of the most famous and largest company
 Strong marketing and adverting of our company products
Corporate social responsibility in country
 One of the most prized companies in the world
 Coca Cola Company has a huge market share in the world market.
 Coca Cola Company has several brand
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And the control by the government would be on the regulations for purposes of manufacture of their products. Regulatory changes which would lead to change in processes like accounting, tax calculations and laws which are related to environment be it domestic or of a foreign country. These are the some of the political factors of Coca-Cola
 Changes in laws and regulations
 Changes in non-alcoholic business era
 Political conditions, specifically in international markets
 Ability to penetrate emerging and developing markets
Economic
 During the decline of 2001, the US government took violent actions to turn the economy around by 2002. Coca-Cola took a note of this, and realized that loan interest rates would likely increase as the economy returned. As a result, they took out low-cost loans in 2001 to fund growth in 2002. They used the loans for research and development on new products to capitalize on in a strong 2002 economy. Currently, as global growth is slowing, Coca-Cola may be watching for a similar opportunity.
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And these are the threats of new entrants
 Advertising and marketing
 Customer loyalty
 Retail distribution
 Fear of retaliation
 Bottling network
Supplier bargaining power
The bargaining power of suppliers is also defined as the market of inputs. Suppliers bargaining power influence the cost of the product.
 Power is payable to high brand image
 The individual buyer no pressure on Coca-Cola
 Majority of the population prefers soft drinks therefore buying power is higher
 Brand loyalty need to time development
Segment rivalry between industry competitors
The competitors of coca cola are
 Pepsi
 kik cola
 other brands
Threats of substitute products
 Other new product keep coming the markets
 Price performance
 Water with gas
Customers bargaining power
 Lot of choice between different brands
 Equal price so coca cola needs to have the superior quality
 Consumers are brand loyal to the company product
2.2 Market Segmentation of coca cola

Our coca cola company has segmented customer according to some categories as stated below
 Geographic

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