MICROENVIRONMENT

The Company
In Coca-Cola Vietnam Company, they have
 Board of directors:
- Country Manager (3 Region Managers)
- Commercial Manager
- Human Resource Manager
 Board of directors who set general goals and policies of the company:
- Supply Chain Manager
- Finance Manager
 Public Affairs and Communication Manager

1. Suppliers
 Coca-Cola considers their suppliers as critical partners, contributing
on the ongoing and sustainable success of their business.
 Suppliers are some individuals or organizations that provide input to
the company. In coke production process, some materials are not
available in Vietnam, so they will import materials from abroad.
 Coca-Cola divides into 2 group:
- Direct spend suppliers include ingredients and packaging
suppliers.
- Indirect spend suppliers include categories such as IT,
production equipment, spare parts, maintenance services, logistics
providers, fleet vehicles, utilities, real estate, facilities
 management, professional and other consultancy services,
personnel and temporary labor.

2. Marketing Intermediaries
Coca-Cola collaborates with a more considerable amount of
marketing intermediaries compared with Pepsi – the biggest
competitor. That is the reason why collaborating with these fast food
restaurant chain plays a crucial role in increasing Coca-Cola’s profit.
 OPPORTUNITIES

1. Diversification – Diversification in the health and food business will

improve the offerings of Coca cola to their customers. This will also
ensure that they get better revenue from existing customers by cross
selling their products. The supply chain which is distributing their
beverages can also distribute these snacks thereby sharing the load of
Supply chain costs.
2. Developing nations – Although developed nations have a high
presence of Coca cola, these countries are slowly moving towards
healthy beverages. However developing countries are still being
introduced to the delight of carbonated drinks and soft drinks.
Countries like India which are developing and have a hot summer, find
the consumption of cold drinks almost doubled during summers. Thus
the higher consumption in developing environment’s can be a
good opportunity to capitalize for Coca cola.
3. Packaged drinking water – With hygiene becoming a major factor in
the consumption of water, Packaged drinking water has found its way
into peoples mind. Coca cola has a presence in the packed drinking
water segment though Kinley. Although Kinleys expansion is slow as
of now, Kinley has a huge potential of expansion. Thus Coca cola as a
company should focus on the expansion of Kinley as a brand and take
it up to Bisleri ‘s level of trust.
4. Supply chain improvement – Supply chain can be a major cost sink
hole with the transportation costs always rising. Coca cola’s complete
business is based on transportation and distribution. There will always
be possible improvements in this area. Thus Coca cola should keep
strict watch on its Supply chain and keep improving to bring the cost
down.
5. Market the lesser selling products – In the product portfolio of Coca
cola, there are several products which have not found acceptance in
the market. Coca Cola needs to concentrate on the marketing of these
products as well. It is understood that Coca cola has made several
expenses to launch these products. Thus, the marketing and
subsequent rise of sale of these products will help revenue of Coca
cola.
 THREATS
Despite the fact that Coca Cola dominates its market, it still has to
deal with many threats.
Plastic: Plastic usage is being restricted by the world. The use of
plastic bottles will make Coca Cola suffer a minus point in the eyes of
people, they need to have a new policy or take measures to collect the
plastic bottles sold.

Health: Even though Coca Cola control nearly 40% of the entire
beverage market, the changing health-consciousness attitude of the
market could have a serious effect on Coca Cola. This definitely needs
to be viewed as a dominant threat. In today’s world, people are
constantly trying to change their eating and drinking habits. This could
directly affect the sale of Coca Cola’s products.

Lawsuits: Another possible issue is the legal side of things. There are
always issues with a company of such supreme wealth and popularity.
Somebody is always trying to find fault with the best and take them
down. Coca Cola has to be careful with lawsuits. Health minister could
also be looked at as a threat. Again, some people may try to exploit the
unhealthy side of Coca Cola’s products and could threaten the status
and success of sales.

Competition: Other threats are of course the competition. Coca Cola’s

main competition being Pepsi, sells a very similar drink. Coca Cola
needs to be careful that Pepsi does not grow to be a more successful
drink. Other product such as juices, coffee, and milk are threats. These
other beverage options could take precedent in some people’s minds
over Coca Cola’s beverages and this could threaten the potential
success it presents again.