Coca-Cola: The Largest Beverage Company in The World

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Coca-Cola

The largest beverage company in the world

Anil Kumar
Khushpreet Singh

Introduction
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world.
It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a

registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally
intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola
was bought out by businessman Griggs Candler, whose marketing tactics led Coke to its dominance of the
world soft-drink market throughout the 20th century.
Founded in 1886, Coke products could be found in over 200 countries worldwide, with consumers downing
more than 1.8 billion company beverage servings each day.

Mission & values


Our Mission
- To refresh the world...
- To inspire moments of optimism and happiness...
- To create value and make a difference.

Values
Our values serve as a compass for our actions and describe how we behave in the world.
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well

Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing
what we need to accomplish in order to continue achieving sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's
desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support sustainable
communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.

Products and revenue

In 2013, Sparkling beverages of The Coca-Cola


Company accounted for 63%, Low calorie sparkling
beverages accounted for 6%, Still and water beverages
accounted for approximately 31% of companys sales
volume.

Market Cap: $185.23 B (Nov 10, 2014)

Competitors
PepsiCo Inc.
Dr Pepper Snapple Group,
Nestl S.A.
Unilever
Kraft Foods Inc.
Many others.

Competitors chart

Organizational Structure
The Coca-Cola Company has a Separate
International Division Structure because
its international staffs operate separately
and in isolation from head office.

Coca-Cola is as an ethnocentric MNC


because its domestic operations are very
similar to its international operations.
Regardless of the country or region, CocaCola operates the same way and sells the
same brand and type of soft drink. The
company has tight control over its
operations from head office.

SWOT Analysis
Strength

Weakness

Global brand
Worlds largest market share in
beverage
Strong marketing and advertising
Most extensive beverage
distribution channel
Customer loyalty
Bargaining power over suppliers
Corporate social responsibility

Significant focus on carbonated


drinks
Undiversified product portfolio
Negative publicity
Brand failures or many brands with
insignificant amount of revenues

SWOT Analysis
Opportunities

Threats

Bottled water consumption growth


Increasing demand for healthy
food and beverage
Growing beverages consumption
in emerging markets (especially
BRICS)
Growth through acquisitions

Strong dollar
Competition from PepsiCo
Changes in consumer preferences
Decreasing gross profit and net
profit margins
Saturated carbonated drinks
market in developed countries
Legal requirements to disclose
negative information on product
labels

Six-Force analysis
Threat of New Entrants: Medium

Consumer switching cost is low so its easy for new entrants but difficulty in maintaining cost and strong

brand value gives new entrants less incentive.

Threats of Substitute Products: High

Releases of a new kind of drink such as fruit juice, iced tea, or milk and same pricing level of different
substitutes like 7Up, Mountain Dew etc.

The Bargaining Power of Buyers: Low

a lot of individuals will have no pressure at company. A strong brand value also helps.

Six-Force analysis
The Bargaining Power of Suppliers: Low

The carbonated water, sweetener, flavouring, caffeine, and other have numerous suppliers

available in the market.

Competitive Rivalry Among Existing Firms: High

A lot of firms competing within the beverage industry, PepsiCo is the biggest.

Government policies pressure : Medium

The government regulations on health issues. Stricter water pollution laws, land acquisition laws

Companys Future
The company will be well positioned despite
challenges in the near future. In our view Its
a BUY!!! So Shareholders of Coca-Cola will
likely be rewarded in the future.

Wherever you go, there are three icons

Thanks

that everyone knows: Jesus Christ, Pele


and Coca-Cola.
Pele

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