Coca Cola Porter's 5 Forces Analysis Essay

Brilliant Essays
Analysis of the Coca-Cola Company
Name
Institution

Analysis of the Coca-Cola Company
Introduction
The Coca-Cola Company is among the biggest beverage companies with a largest global market. This company was initially started as a local business and later developed into a multi-billion empire with equally significant market shares. The formation of the incorporation in 1991 and the substantial returns of over $5 billion witnessed in 1992 served as an indication of the future success of the Coca-Cola company as seen today. For a company whose most famous beverage, Coke, was made from trying out mixtures of different recipes to get a unique taste, it is more than just the journey from local business to a corporation but a step by step challenge to success. According to a recent report by the company in 2010, they received up to $35 billion in revenues and $11.8 in income. While Coca-Cola serves 200 countries at that time, the company plans to spread its products all over the world and make it the number one household name for beverages not only in soda drinks category but also in fresh juices and bottled water. At the moment, the name Coca-Cola is recognized universally due to its rapid and steady growth over the years (Anders, 2013).
Consequently, to get to where it is, the Coca-Cola Inc. has had to overcome
…show more content…
Similarly, some of the factors that have been going on for a long time have become the company’s most significant threats. At the same time as Coca-Cola has carved out its niche in the global market, it is safe to say that there are strengths that define it and keep it on the map of the biggest beverage companies. Combining the PEST analysis and the Five Forces can give a framework of a SWOT analysis of the Coca-Cola

Related Documents

  • Improved Essays

    Jones Soda Case Study

    • 857 Words
    • 4 Pages

    The business that I choose is Jones Soda Co. Jones Soda is a company that sells soft drinks. It was established in 1986 in Western Canada. During its first 10 years, the company sells variety lines of beverage other than just Jones Soda.…

    • 857 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Coca-Cola is a company that has successfully put their name at the forefront of their market. When one thinks of a beverage, “Coke” is usually one of the first beverages that pops into our heads. In some parts of the country, the word coke has become synonymous with words like pop and soda. While one might assume that this would be beneficial, it actually causes a problem for the Coca-Cola company. When this phenomenon occurs, the unique, house-hold name of a product ceases to be unique.…

    • 1296 Words
    • 6 Pages
    Great Essays
  • Decent Essays

    Coca-Cola has the potential to increase their earnings per share in the following years due to their large market share and can dig themselves out of the hole by making the right decisions for the…

    • 591 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    The illustration shows the worldwide distribution of sales of Coca cola products by quantity in 2003. Although Coca cola is a global product with universal appeal, the company actually operates in local environment around the world with each country having its own unique needs and requirements. So while Coca cola is probably the only product in the world that is universally relevant in every corner of the world. The company feels that its responsibility is to ensure that with every single can or bottle of coca cola sold and enjoyed, individual connections are made with their consumer.…

    • 1920 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    Even if there is another competitor that offers the same product at a lower price, both Wal-Mart and Target guarantee a price match. The last two forces, substitutes and rivalry, were difficult to distinguish because there are not any other companies that offer the variety of goods that Wal-Mart and Target do (groceries, clothes, toys, etc.). The most prominent substitute is online retailers such as Amazon, but our society’s need for instant gratification nullifies this threat as with online purchases you have to wait to receive shipments. There are businesses that rival individual departments such as Harris Teeter (grocery) or Dick’s Sporting Goods (sporting goods), but there is no other all-encompassing superstore that can rival these.…

    • 2153 Words
    • 9 Pages
    Improved Essays
  • Improved Essays

    Coke History Essay

    • 2087 Words
    • 9 Pages

    Have you ever thought how your favorite drink has gotten to the point it is now? Coca Cola has been around since 1886 and it has achieved many accomplishments. But a company that big has to have some kind of failures and impacts on today's people. With all the drinks they sell you can imagine that the Coca Cola company would have an empire, and it does. Showing facts that its competition is always slacking with revenue.…

    • 2087 Words
    • 9 Pages
    Improved Essays
  • Decent Essays

    PepsiCo is a company that saw the light in 1965 thanks to Donald M. Kendall who decided to merge Pepsi-Cola Company and Frito-Lay, Inc., a strategic move necessary to stay competitive with their ever-growing opponent Coca-Cola (Enrico & Roger, 1986). Since then, this global company: markets, distributes and sells a large range of alimentary products and is thus the third biggest in its category. Its offer includes beverages, foods and snacks, which are present in various points of sales in more than 200 countries. Regarding the company’s beverage product portfolio, it includes famous brands of juices, teas, coffees, sports drinks and waters. It is however considered to be one of the most valuable firms in the world due to its presence in two…

    • 913 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    It is rightly said that advertisement is as much a science as it is an art. Advertisements are major means of communication in the field of marketing as it serves as a direct contact with the consumers of a product. Success of an advertisement depends on success of the product in making its place in the market defined by its reach and an attractive image of the product in the mind of the consumers. Coca-Cola is an American multinational beverage corporation and retailer, manufacturer and marketer of non alcoholic beverage. The headquarters of the company are in Atlanta.…

    • 2443 Words
    • 10 Pages
    Improved Essays
  • Decent Essays

    Also it is a product that is grappled to our customs. Using advertising is great to influence the public. Also perceives a target analysis where consumers take as a preference that is affecting the emotions of consumers and stimulates the emotions of the consumer that is reaches the heart of us as their commercial persuasive are come as familiar model or customs, like parties, family moments as also awakens the concept and values of life which awakens the interest to take the drink. This is why Coca Cola has lasted over many years is a drink with refreshing taste, most consumers take it. First, it is necessary to classify Coca Cola as a drink which aims to stimulate the emotions of the consumer, as everything about postmodernism, as it is a brand that reaches the heart of the consumer through incredible and persuasive commercials parties, moments family , concepts and values that somehow awaken product consumption and popular interest in the company.…

    • 1077 Words
    • 5 Pages
    Decent Essays
  • Great Essays

    However, Coca-Cola company is in the attention because it is the leader of the sector. It may yet be decades before people start referring to Coke in the same way they do mp3 players, maybe it will not happen at all. But if Coca-Cola (leader of the soda sector) does…

    • 1958 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    The 2 companies already strong brand equity, increasing marketing budget for their flagship brands and constant innovation (e.g. freestyle soda machine) should retain customers’ loyalty. By diversifying their product portfolio through new acquisitions and introduction of a variety of new CSDs such as diet products that already proved their profitability and non CSDs, the two companies should be able to respond and adapt to the customers changing demand and preferences such as increasing health concerns, rising interest in sports and nutritional drinks. The international market remains a key opportunity for Coca cola and Pepsi to sustain and increase their profitability. Even though Coca Cola is already a leader on the international level with 80% of sales in contrast with roughly 50% of sales for Pepsi, many foreign untapped markets are still far from being saturated and constitute a good profitable business, especially within the rising economies in Asia, Africa and the Middle East as growth means higher purchasing power.…

    • 885 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    I believe that the Coco-Cola corporation is a superior company than Pepsi co. America being a country of freedom and prosperity was founded on innovation still being embodied in every can of Coke. Opening up a can of Coke, soda, or pop can mean many different things depending on where you live in the country meaning we all have our own opinions. The Coca-Cola company was founded in the late ninetieth century by a pharmacist by the name of John Pemberton.…

    • 749 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Understanding the uncontrollable elements gives Coca – Cola an overview of the market to adjust the method of investment, which contributed to a rapid growth in market share and a high degree of market penetration in an emerging market as China. In conclusion, the successful of the Coca – Cola company in China market is constituted of some secrets as follows:  Firstly, Coca – Cola gained benefits from its reputation brand. They built a strong trademark in some countries before entering the Chinese market.  Secondly, by having Joint Venture with Chinese partners, Coca – Cola created an efficiency and effectively distribution network, associated with franchise stores from foreign partners to boost product’s…

    • 1178 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    3.0 Starbucks Porter’s Five Forces Analysis Porter’s five forces is generally used for strategy development and industry analysis. The five forces which shapes the competition within the industry are rivalry among competitors, the threat of substitute products and services, the entry of new competitors, the bargaining power of the buyers and the bargaining power of the suppliers. The relationships among these forces is best presented in the following figure. Bargaining Power of Buyers Threat of substitutes Industry Rivalry Threat of new entrants…

    • 1165 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    It appears that by the sheer size of the company, range of market area, and level of employee satisfaction, the Coca-Cola Company has created a strong foundation for success for the company and for their many…

    • 1242 Words
    • 5 Pages
    Improved Essays

Related Topics