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Strategic analysis of

Presented by
Group 10
Allwyn Samuel 281065
Geetika Singla 281079
Mehak Mohindra 281088
Pallavi Dubey 281093
R.Sangeetha 281094
Rahul B. Kashyap 281096
About
• The Coca-Cola Company, American corporation founded in 1892
• Today engaged primarily in the manufacture and sale of syrup and concentrate for Coca – Cola
• With more than 2,800 products available in more than 200 countries, Coca-Cola is the largest beverage
manufacturer and distributor in the world and one of the largest corporations in the United States.
• There are several products which The Coca-Cola Company produces other than Coca-Cola itself. Fanta and
Sprite hold, besides Coke, large market shares in the world non-alcoholic beverage market.

Vision of Coca-Cola
• The vision 2020 is a great direction for Coca cola’s development in beverage industry.
• The company is aware of what they need to do in present and in the future.
Mission of Coca-Cola
• To refresh the world
• To inspire the moments of optimism and happiness
• To create value and make a difference
INTERNAL
ANALYSIS
Swot Analysis of
Strengths: Weaknesses
• Reputation and brand value of Coca-Cola in • Customer’s increasing health awareness
the world market • Undiversified product portfolio
• Market leader in beverage industry • Controlling taste and quality
• Strong, impressive marketing and
advertising
• Huge range of product portfolio

Threats Opportunities
• Highly competitive market to operate and • Young customers and lucrative market
hold the market leader position • Abundant availability of resource
• Waste disposal is a major concern for Coca- • Collaboration with food-chains
Cola
• Global Environment
VRIO Framework of
Resource or Capability Valuable (exploits Rare (possessed by Inimitable (costly to Non-substitutable Core competency that
opportunities and one of a few firms imitate) (there is no equivalent provides a Sustained
neutralises threats) in the industry) resource or capability competitive
that could be used by a advantage?
competitor)
Yes – Coca-Cola exploits this Yes – forever worldwide Maybe – Coca-Cola can Yes – hard for Pepsi to use No – only a temporary
Worldwide network effectively for entering shut out Pepsi with another capability to replace advantage at best since Pepsi
distribution global markets exclusive agreements Coca-Cola’s advantage in this may imitate it without
aspect bearing too much cost
network

Yes – Coca-Cola has made it work Yes – only Coca-Cola has it Yes – only handful know Yes – hard for Pepsi to use Yes – who has to copy it yet
Secret Formula to its advantage in many markets the formula and it has a another resource or capability to after 120 years?
around the global long history of keeping it beat Coca-Cola in this case
so, ~ 120 years

Yes – effective use of advertising Yes Yes – it is hard for Pepsi to Yes – it is unclear if Pepsi could yes
Consumer to differing demographics in exactly copy this skill and use another resource or
Marketing Skills many locations around the world in nay case the Coca-Cola capability to counteract this
brand name is well-known core competency
globally and well
respected
Value chain analysis of
Inbound logistics
Coke invests a huge amount of money in product quality. Because of that, Coca-Cola pays special attention to the
raw materials that are bought. Suppliers provide materials such as ingredients, machinery and packaging etc to
Coke. This makes sure that the suppliers of Coke follow a pattern of quality
Outbound Logistics (Buyers/Customers)
Coca-Cola has one of the best distribution systems in the world. Distribution system at Coke can be considered a
strong competitive advantage. Coke owns lease and operation in over 800 plants around the world. It offers more
than 3500 beverage products in more than 200 different geographic locations
Marketing and Sales
Coke has attached itself with happiness and has produced some of the best marketing campaigns in the world. Coke
invests up to 14% of its profits in communication.
Operations
The main operation at Coke consists of production of syrup, which is used in Coke (Coca Cola 2006). Other than that,
along the value chain, bottling operations, distribution and sales are also impacted by the company.
Services
Services include the maintenance and enhancement of value and which includes customer care and support,
installations of machines etc. and training of teams.
EXTERNAL
ANALYSIS
Pestle factors:
Pestle analysis of
India started liberalization with which Coco-Cola got easy entry in India. But because of corruption and pressure
from various political parties the company faced down-run and then again it entered India by fulfilling all the
political factors.
Economic factors
The rising cost of raw materials is a reason for alarm. Coca Cola uses some very basic ingredients to produce its
products, and these ingredients are always rising in prices.
Social Factors
The biggest social factor that affects Coca Cola is the mentality change in its consumers. The millennial and Gen-
X consumers are readily shifting to energy drinks instead of carbonated drinks due to the health concerns that
the latter brings.
Technological factors
Technological advancements such as AI bases analytics and big data operations have also served the brand in
deciding markets trends and service chain management processes. Coca Cola actively uses the latest
technological innovations to help increase its target market and production base.
Environmental factors
In countries such as India, Coca Cola is being held accountable for completely draining off groundwater in large
areas. Coca Cola needs to immediately take steps to put in water management operation or it can be banned in
these countries.
Porter’s Five Forces
Bargaining power of suppliers
The bargaining power of suppliers of Coca Cola is weak. It is so because the number of suppliers is high and the switching
costs for Coca Cola low. While Coca Cola can easily switch from one supplier to another, it is not possible for any supplier to
switch away from Coca Cola as easily

Bargaining power of buyers/customers


The bargaining power of individual customers in case of Coca Cola is low. Individual customers generally buy small volumes
and they are not concentrated in specific markets either.

Threat of new entrants


In the beverages industry there are several factors that discourage new brands from entering. Growing a brand overnight is
impossible. There are significant investments to be made. From operations to marketing every part requires a large
investment.

Threat of substitutes
Main substitutes of Coca Cola products are the beverages made by Pepsi, fruit juices, and other hot and cold
beverages. The number of substitutes of Coca Cola products is high. There are several juices and other kinds of hot and
cold beverages in the market
Competitive analysis of
Coca Cola is one of the leading soda beverages company of the world with a very large product portfolio made up of more
than 500 sparkling and still brands

COMPETITORS OF COCA COLA COMPANY

• Pepsico : The two brands compete across several categories including sod beverages, health and energy drinks as well
as bottled water and juices. Infact Pepsi is the toughest competitor of Coca Cola and their rivalry has come to be
termed as Cola wars.
• Dr Pepper Snapple: Pepper Snapple has a portfolio of more than 50 refreshing brands. These brands include
carbonated soft drinks, juices, teas, mixers, waters and other beverages. The brand is a major competitor for Coca Cola
in the US market
• Red Bull: Red Bull despite its limited product portfolio is a major competitor for the energy drink products of Coca
Cola.
• Nestle: While Nestle is not a direct competitor of Coca Cola, still it competes with the brand across some specific
product categories like bottled water.
• Parle : Parle is an Indian brand and competes with Coca Cola across some specific product categories that include
bottled water and juices.
Segmentation analysis of
Geographic segmentation
Coca-Cola has a countrywide network of product distribution but the company segments more in urban and suburban
areas as compared to rural areas.

Demographic segmentation
• Demographic variables are the most popular base of Coca-Cola Company for distinguishing their customer group
• The reason is that consumer wants, preferences, and usage rates are often associated with demographic variables

Psychographic segmentation
Coca Cola buyers are divided into different groups on the basis of lifestyle or personality or values. People within the
same demographic group can exhibit very different psychographic profiles.

Behaviorial segmentation
In behavioural segmentation, Coca Cola buyers are divided into groups on the basis of their knowledge of, attitude
toward, use of, or response to a product.
Key success factors of
Marketing
• Coca cola is seen as one of the fathers of modern day marketing model.
• They were among the pioneers of advertising techniques and styles used to capture an audience.

Innovation
• Coca Cola has been able to survive and grow in an ever changing market because of its ability to systematically
innovate and deliver new products
• Now Coca Cola offers nearly 400 different products in and is still dominating the beverage industry. This is made
possible by the company’s ability to innovate and adapt to changing markets.

Globalization
• Technology is continually changing business, and these constant changes have been making it making it more feasible
and profitable for businesses to expand their operations globally in order to serve different types of diverse markets
around the world.
• This global view is reflected in Cola’s recent “I’d like to teach the world to sing” commercial.
STRATEGIES
Business strategies
Differentiation Strategies
Coca-Cola’s top most brands like Coca Cola, Sprite, and Fanta are manufactured under strict quality standards and by
using unique formulations. With the help of its differentiation strategy, the Coca-Cola Company is able to maintain the
top market leadership position. Differentiation is found in each and every aspect of its business operations

Low Cost Leadership


In addition to delivering the top quality products, the company also keeps an eye on its increasing operational and
marketing expenditures. It recognizes the importance of cost control for gaining competitive advantage in the industry
and operating in a more profitable way.

Focus Strategy
The company uses focus strategy in both low cost and differentiation dimensions. For its focused low-cost strategy, it has
defined a specific line of beverage products through which it can target a specific market and achieve low cost by
manufacturing these products under highly efficient manufacturing processes
Corporate Strategies
Growth Strategies
The Company invests a huge amount on its business expansion projects in all the six operating regions of the world. It is
currently present in more than 200 countries which is a big depiction of its focus on growth strategies. Being a large scale
corporation, the Coca-Cola Company has to use different types of growth strategies in different situations and for varying
needs of its business operations.

Stability Strategies
Sometimes, the Coca-Cola Company has to suspend its growth strategy and take a stand on its current market position. The
company uses this strategy when it feels that growth strategies are not a feasible choice in the presence of unfavourable
economic circumstances or some internal issues.

Retrenchment Strategies
The Company uses retrenchment strategy for those business units where it observes no or little growth during a definite
period of time.
THANK YOU!