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Coca-Cola Case Study Help

Technological progress way, industrialization, and globalization act as influential factors and transform the global business environment. It has become uncertain, volatile, intensely competitive, unpredictable, and challenging for contemporary business entities. The management of a business entity has to use its core competencies and key resources in order to create sustainable competitive advantages and thrive in the industry in which it operates. In this paper, the vision, mission, core values, and other details of Coca-Cola will be analyzed. The management of the firm has to explore emerging opportunities and generate maximum value by using appropriate business strategies and marketing strategies. The objective of this paper is to assess the external environment in which Coca-Cola operates. This paper will identify the strengths, weaknesses, opportunities, and threats of Coca-Cola. It will be fruitful for the management of this company to utilize its strengths and opportunities. It will allow this USA-based business entity to stay ahead of the competition. Assignment Help Service Main Advantages

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Organizational background:

The Coca-Cola Company, established in 1886, operates in the beverage industry. This firm offers carbonated soft drinks for its target audience. The headquarters of this organization is located in Atlanta, Georgia, United States. The business operation of this USA-based business entity is controlled by James Quincey, the CEO of this organization. This organization offers its products across the world. With the assistance of 86200 employees, this organization fulfills the demand of its target audience. The annual revenue of this organization was 37.27 billion US$. In this year, the profit of this organization was 8.92 billion US$. The product portfolio of this organization contains a wide range of products such as diet coke, diet coke caffeine-free, caffeine-free coke, Coca-Cola Vanilla, Coca-Cola lime, Coca-Cola Cherry, Coca-Cola life, Coca-Cola mango, Coca-Cola Citra, and others. The mission statement of this organization is to inspire moments of optimism and happiness and assist customers to create value and make a difference. The vision of this organization is to craft the brands and choices of drinks that the customers love.

SWOT analysis:

Coca-Cola is confronting several challenges due to the changes in the consumption pattern of the target audience. That is the reason the management of this organization has to identify its strengths, weaknesses, opportunities, and threats. Appropriate utilization of SWOT analysis will be beneficial for this USA-based business entity to identify areas that need further modification to generate values from the opportunities.


A dominant market share in the beverage industry is beneficial for this organization to manipulate the competition in the industry. Being a large business entity and having a dominant market share enables this USA-based business entity to create sustainable competitive advantages. Economies of scale allow Coca-Cola to control its fixed costs over several brands. It allows this organization to offer its products as cheaply as possible. The market power over suppliers and distributors due to its size and controlling power is the reason for which this organization generates value. The power over buyers is a strength of the Coca-Cola Company. This organization has enormous brand recognition all over the world.  This organization has the financial strength to influence the purchasing decision of the customer through its brand power and effective marketing campaign. A diversified product portfolio with a 21-billion-dollar brand is a strength of Coca-Cola. At present, this organization owns more than five hundred brands. The product portfolio of this company consists of products from seven beverage categories, which are carbonated soft drinks, bottled water, sports drinks, alternative drinks, energy drinks and shots, and juice and juice drinks.


The weakness of Coca-Cola can be said that aggressive competition with Pepsi is creating new challenges for this organization. This organization is forced to compromise its profit margin in order to dominate the competition. Compared to its rival business entities like Pepsi, Coca-Cola has low product diversification. Pepsi has launched snacks like Lays and Kurkure. In this segment, Coca-Cola is lagging. People are becoming health cornered. As a result of this, they have started reducing carbonated drinks, which are the major source of sugar intake. High sugar intake can lead to health issues like obesity and diabetes. This organization fails to diversify its product portfolio to include any healthy alternatives to address this issue.


For the opportunities, it can be said that this organization can introduce new products and diversify its segments. The inclusion of products in health and food segments will allow this organization to create sustainable competitive advantages. This organization can expand its business operation in emerging countries. Expansion of its business operation in Middle Eastern and African Countries will allow this company to maximize its market share and customer base. This organization can dominate its competitors by using an advanced supply chain system. The business operation of Coca-Cola heavily relies on logistics and supply chains. This organization has several packaged drinking water brands such as Kinley and others. For Coca-Cola, the expansion of its business in healthy drinks and packaged water will be an opportunity to generate revenues by avoiding people's criticism.


For the threats to the Coca-Cola Company, it can be said that this organization has faced several criticisms for its water management issue. Several social and environmental groups have claimed that Coca-Cola has a vast consumption of water in water-scarce regions. This organization has faced several criticisms as there is an allegation that Coca-Cola is polluting water and mixing pesticides in water to clear contaminants. The brand reputation of Coca-Cola has been affected by this incident. The sustainable growth of this organization is affected by the packaging controversy. For packaging, this organization mostly uses single-use plastic bottles, which are harmful to nature and the environment. The sustainable growth of Coca-Cola is affected by direct and indirect competition. It is a major threat to this company.

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PESTLE analysis:

In order to assess the external business environment, in which Coca-Cola operates, the management of Coca-Cola has to use PESTLE analysis. It will allow this organization to get insights into the target market.

Political factors:

Political factors can create challenges for the business operation of this USA-based business entity. The presence of political stability in the target market can allow this organization to operate its business operation without any disturbance. The interference of bureaucrats and political parties can create challenges for this organization. The presence of corruption and government effectiveness can create challenges for Coca-Cola.

Economic factors:

The economic stability of the target market can influence the business operation of Coca-Cola. The per capita income, GDP, GDO growth rate, and inflation rate of the target country play influential roles for Coca-Cola. Though this organization dominates almost fifty percent of the market share in the carbonated beverage market, this company is facing stiff competition from its direct and indirect competitors. By including health products in its product portfolio, Coca-Cola can create sustainable competitive advantages and generate more revenue in the upcoming days.

Social factors:

This organization operates in different countries across the world. The cultural disparities between different countries might create challenges for this organization. That is the reason this organization can use Hofstede's cultural dimension model to identify cultural disparities between different countries. The outbreak of Covid-19 has disrupted the sustainable growth of this organization. The demand for consumer goods has decreased drastically during this pandemic situation. Several people are losing their jobs in this challenging situation. It might create an adverse impact on the business operation of Coca-Cola. In order to create sustainable competitive advantages, this organization has to understand the cultural factors, societal values, and beliefs of the target audience. Based on that analysis, the management of Coca-Cola has to optimize its business strategy and marketing strategy.  

Technological factors:

This organization has to utilize advanced technology to manage its distribution channel and logistics. A country where advanced technology and infrastructure are available will be fruitful for this organization to gain advantages. In order to stay ahead of the competition, this USA-based business entity has to use technology and infrastructure strategically.

Environmental factors:

This organization has to follow the environmental regulations set by the government. As this company operates in several countries, it might be challenging for Coca-Cola to manage its business operation by following the laws and compliances. This organization uses single-use plastic bottles for packaging. It can be said that this company should focus on green packaging.

Legal factors:

This company has to follow the regulations set by the government. The management has to ensure that this company follows employment laws and provides a safe and discrimination-free workplace for its employees. This company has to provide adequate remuneration and other benefits to its employees.


Thus, this discussion concludes that the external business environment in which Coca-Cola operates is challenging. This company has to utilize its strengths and opportunities to mitigate threats and weaknesses. This organization has to focus on green packaging and sustainable business practices. It will allow this company to create a positive brand image in the marketplace. This organization has to expand its business operation and include healthy drinks in its product line to attract health-conscious customers.

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