Coca Cola -- External Analysis
An external analysis of Coca-Cola (NAICS # 312111 -- Soft Drink Manufacturing) requires scrutiny of the specific industry environment with Porter's 5-Forces model and examination of the larger business environment through a PEST analysis. In his interview on YouTube, Porter speaks of the five factors of Competitive Rivalry, Threat of New Entrants, Threat of Substitute Products, Bargaining Power of Suppliers, and Bargaining Power of Buyers. He also discusses the underlying forces for each factor, examining the Airline Industry, in which all five factors are strong, and the Soft Drink Manufacturing Industry, in which all five factors are "benign," essentially making the Soft Drink Industry "a license to print money" (Harvard Business Publishing, 2008). Porter stresses the importance and flexibility of his five forces, which keeps an organization focused on "underlying fundamentals" so the organization's leadership is not tricked or trapped by the latest trend or sensation (Harvard Business Publishing, 2008). Explaining that his five forces are dynamic rather than static, Porter emphasizes constantly reexamining how the company, and ideally everyone working for the company, are broadly pursuing a "common proposition of gaining competitive advantage" (Harvard Business Publishing, 2008) and assures his audience that competition does not have to be a "zero sum" competition; rather, there can be many "pieces of the pie" and each company within an industry can offer a unique way of serving various consumer needs so all the companies within an industry can thrive (Harvard Business Publishing, 2008).
Using Porter's Five Forces
Sources providing information to assess Coca-Cola according to Porter's Five Forces are numerous and many of them are set forth in Carl Gwin's A guide for industry study and the analysis of firms and competitive strategy. Gwin first explains that several of Porter's Five Forces combines "analysis of market structure" and "vertical boundaries," which are two Microeconomics tools (Gwin, 2001). Corresponding several of Porter's Five Forces to similar business concepts, Gwin sets forth valuable data sources for analysis. Porter's "Industry Competitors" corresponds with Gwin's "Number of Sellers" and sources of information can be found: at www.census.gov (United States Census Bureau, 2012), where the researcher...
COCA-COLA vs. PEPSICO COMPANY Company Financial Comparative Study Coca-Cola Company and Pepsi Incorporation are beverage-producing companies worldwide. Over the years, people have had different opinions and ideas about the two companies, although their products are meant to serve the same purpose. Both plants have sub-plants, although Coca-Cola Company has its sub-plants worldwide. Pepsi Company has managed to set plants in specified regions, which serve as strong hold of the company. Pension plans
With a small number of companies competing for a market that in many cases (North America, for example) is subject to slow growth, the competition can be characterized as intense. Thus, Coca-Cola's marketing message must also take into account the moves that its competitors are making. Coca-Cola not only must respond to shifts in the competitive environment but as industry leader must protect its position by making proactive moves
Coca Cola Is Everything Coca-Cola Is Everything: SCM, CRM, ERP, Social Media Importance of standardization in supply chain management Software services of Coke My Coke Rewards an example of a switching cost Pepsi's Facebook page and comparison with Coca-Cola's Facebook Supply Chain management is regarded as anintegratedapproach for managing business resources. The companies including largescaleenterprises utilize its capabilities to enhance their business performance. The capability of the supply chain management can be increased through using a
Coca-Cola External Coca-Cola's industry conditions, according to the Five Forces analysis, are generally favorable. The environmental conditions, according to the PEST analysis, are also generally favorable. This means that with few obstacles, Coca-Cola should be able to achieve its business objectives. NCAIS Code The industry code for Coca-Cola is 312111: Soft Drink and Ice Manufacturing (U.S. Census Bureau, 2007). Porter's Five Forces Porter's Five Forces explain the ability of firms to earn profits in their
Instead, the Cola Wars helped the industry grow. In 2000, for example, 41% of total non-alcoholic beverages sold were CSDs. In the late 1990s and into the 21st century, the drinks with high growth (and media hype) were non-carbonated juices, sports drinks, tea drinks, dairy drinks, and bottled water. Pepsi dominated this market with Gatorade, Lipton and Aquafina. The bottlers were also required to reinvest in more complex equipment
This provides tremendous opportunity to build market share without significant increases in infrastructure. The downside of these markets is that they tend to be less efficient, because fixed costs are higher in relation to revenues. The company can win in such markets, however, if it uses its globally powerful brand to gain a stronger presence in underserved markets, thereby pre-empting rival firms from entering these markets. With Coca-Cola establishing
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