Marketing Paper onAnalysis of Coca Cola Company
| Opportunities
1. Growth in bottled water industry. 2. Expanding beverage industry in Asia. 3. Using its huge capital base to acquire the small businesses that produce beverages to counter competition from competitors. 4. Promotional opportunities that target particular markets. |
Threats
1. Stiff competition from its rivals which include Pepsi and other companies that produce beverages and their substitutes. 2. Nutritional value challenge of its sugary products. The products are accused of causing obesity. 3. Occasional changes of the legal requirements in different parts of the world that the company operates in. |
Opportunities
The major opportunity for the company is in the bottled water industry. This industry has over the last years grown tremendously. Given that Coca Cola Company has already ventured into this industry, it can only expand it to enjoy the huge benefits in the industry. This would help the company to increase its profitability. Another major opportunity for the company is in the beverage industry. Although it appears like the company has exhausted this industry, it has not exhausted it in Asia. In this respect, the company should expand its beverage business in both China and India. These two markets have huge populations that can increase its market share and profitability. In terms of acquisition, the company has huge capital base. The huge capital base can be used to acquire the small businesses that produce beverages. It can also be used to intensify competition against the small businesses. This would help the company to solidify its market share and its impact on that market. In so doing, it would help the company to counter the stiff competition it faces from Pepsi and other companies that offer substitutes (Hill, Jones and Schilling 17). It would also help the company to diversify its products and thereby counter the health challenge that faces most of its sugary products. Lastly, the company has the opportunity of intensifying its promotional campaigns to acquire a larger market share. This can be targeted to the Asian market to edge out its competitors in that region.
Threats
The company faces stiff competition from its main rival, Pepsi. This competition is especially stiff in USA where Pepsi has a larger market share than Coca Cola Company. So far, the stiff competition has affected the company’s income in USA more than in other regions of the world. Recently, Pepsi started expanding to other parts of the world. Given the stiff competition that the company faces from Pepsi, it is probable that the competition is likely to intensify in other parts of the world. This will ultimately affect the company’s businesses and income. The company also faces a nutritional value challenge for most of its coke products. It has been argued that most of its sugary products cause obesity. Accordingly, some of the people do not consume products from the company. Although the company has reiterated to the claim by producing non-sugary products, the health concern has seen a sizeable group of people distance themselves from the company products. This has affected the company’s market share in one way or the other thereby decreasing its income. The change of the legal requirements in various countries that the company operates in is the last major threat that the company faces. Although it is not rampant, it affects the company whenever it happens (Hill, Jones and Schilling 17). This is in relation to the fact that the company operates in many countries in the world. Therefore, whenever the changes occur, they affect the company’s business.
Work Cited
Hill, Charles W. L., Gareth R. Jones, and Melissa A. Schilling. Strategic Management: Theory: An Integrated Approach. South-Western, 2014.