INTRO The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic...

INTRO

• The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world.

• Coca Cola products bearing the company’s trademark are now being sold in 200 countries around the world.

• The company owns or license more than 450 brands.• As a company that operates in more than 200 locations around the

world

CO BRANDS OF COCA COLA LAEnergy Drinks Coca Cola’s brands of Energy Drinks contain Healthy ingredients which help you vitalize

Juices/Juice Drinks Coca Cola’s more than 20 juices, offering both adults andchildren nutritious, refreshing and flavorful beverages.

Soft Drinks soft drinks from The Coca-Cola Company are both icons and innovators in the beverage industry.

Sports Drinks Carbohydrates, fluids, and electrolytes team together in Coca Cola’s Sports Drinks, providing rapid hydration and terrific taste for fitness-seekers at any level

Tea and Coffee Bottled and canned teas and coffees are satisfying both traditional tea drinkers and today's growing coffee culture

Water Smooth and essential, our Waters and Water Beverages offer hydration in its purest form.

CONTD …..

3–5

Components of Internal Analysis Leading to Competitive Advantage and Strategic Competitiveness

KEY CRITERIA OF RESOURCES AND CAPABILITIES

VALUABLE• Size• Intensive distribution• Deep pockets

COSTLY TO IMITATE• Brand Image• Product testing in every individual market.

CONTD…..RARE• No it is not rare.• Product testing in every individual market.

UNSUBSTITUTABLE• Anything that substitutes coke is a threat like water, lassi, sugarcane

juice, coconut water etc.

OUTCOMES FROM COMBINATIONS OF THE FOUR CRITERIA

Valuable?

Rare?Costl

y to Im

itate?

Nonsubsti

tutable?

CompetitiveConsequences

PerformanceImplications

NoNo NoNo NoNo NoNo CompetitiveDisadvantageCompetitiveDisadvantage

Below AverageReturnsBelow AverageReturns

YesYes NoNo Yes Yes Yes/NoYes/No CompetitiveParityCompetitiveParity

Average Returns Average Returns

YesYes YesYes NoNo Yes/NoYes/No

Temporary Com-petitive AdvantageTemporary Com-petitive Advantage

Above Average to Average ReturnsAbove Average to Average Returns

YesYes YesYes YesYes YesYes Sustainable Com-petitive AdvantageSustainable Com-petitive Advantage

Above AverageReturnsAbove AverageReturns

COCO - COLA

PEST ANALYSISP-Political change from one party to another.Factors-1)Changes in laws and regulation.2)Changes in non-alcoholic business environment.3)Political condition.4)Ability to penetrate developing and emerging market

PEST ANALYSISE-Economic change(changes in economy)Factors-1)Lowering of interest rate.2)Recession.3)Unemployment rate.4)Expectation of lower inflation.

PEST ANALYSISS-Social change(changing attitude and lifestyles)Factors-1)US citizens practicing healthier lifestyles.2)Increase in Time management.3)Increase need for bottled water.4)Concern in society about nutritional value.

PEST ANALYSIST-Technological change(new product, product improvement)Factors-1)New technology of internet and television.2)Introduction of cans and plastic bottles.3)Introduction of new machinery.4)Development of diet cola.5)Top product quality and speed delivery.

• Economies of Scale• Product differences• Cost advantage• Brand identity

• Brand loyalty• Price of substitutes• Buyer propensity to substitute

• Buyer concentration• Buyer information• Brand identity of buyers• Price sensitivity

• Supplier concentration• Presence of substitute inputs

• Industry growth rate• Diversity among competitors• Exit barriers• Product differentiation

Primary activities

Supportactivities

Primary Activities:-• Inbound logistics(suppliers)• Operations• Outbound logistics• Marketing and sales• Services

Support Activities:-• Human resource management• Technology development• Procurement

STRENGTH• Strong Brand Equity• Global presence• Strong distribution network• Low cost of operations• Wide range of products

WEAKNESS• Health problems• Product line limited to beverages• Customer concentration

OPPORTUNITIES• Health segment• Bottled water growth• Smaller players acquistions• Untapped potential in developing

countries

THREATS• Health drinks• Commodity prices growth• Small/local players• Sluggish growth of carbonated

beverages

MERGERS & ACQUISITIONS• Thums Up - 1993Barq’s Inc – 1995.• Many Bottling Companies.• Mid River Traders Ltd - teas, juices and carbonated soft drinks -2001.• Seagram's mixers business from Diageo and Pernod-Ricard -2002.• Glaceau – 2007.• Fanta• Sprite

MERGERS & ACQUISITIONS• Kinley• Georgia coffee• Minute Maid• Schweppes• Evian – 2002.• Limca• Maaza• Rimzim

Thank You