COCA COLA

Coca Cola’s PESTEL Analysis• Political

– Underdeveloped economy– Corrupt government

• Economical – International economies – Really high inflation rates – Indirectly dealing with international

bottling organizations

• Sociocultrual – Nutrition ( consumers 37-55 are also

increasingly concerned with nutrition) – Affects non-alcoholic beverage industry

by increasing the demand overall and in the healthier beverages.

– The demand for carbonated drinks decreases and this pulled down the revenues of Coca Cola.

• Technological– Creates opportunities for new products

and product improvements in terms of marketing and production

• Environmental– Local, national and world issues– All facilities are strictly monitored to the

environmental

• Legal Context– Legal aspect focuses on the effect of the

national and world legislation. The Coca Cola Company receives all the rights applicable in the nature of their business and every inventions and product developments are always going into the patented process.

Industry Analysis

• Success factors - ability to meet competitive pricing - extensive distribution capabilities -marketing skills to raise consumer brand awareness -broad mix of products -global presence -well positioned bottlers and bottling capacity

Porters Five Forces

Threat of New Entrants (low)Brand Identity/Awareness Too much time and $$

Access to Distribution Hard to secure shelf space

Capital Requirement Too $$ to accumulate resources

Supplier Power (low)Importance of Volume to Suppliers Suppliers have no leverage

Threat of Forward Integration Begin bottling own beverages

Proprietary Products Exclusive Coca-Cola Contracts

Porters Five Forces

Buyer Power (High)Buyer Volume Buy in bulk

Many Substitutes More options/similar price

Low Switching Costs Less pressure because of substitutes

Threat of Substitutes (High)Most popular substitute = Water

Variety of Substitutes Other carbonated and juice beverages

Low Switching Cost Competitors prices are alike

ComplementorsRelative Value Added Pairing beverages with McDonald’s

food

Relationship with Bottlers Sell & Distribute Coke products