Contents

Coca-Cola History
Vision, Mission & Objectives
PEST Analysis
Porter's 5 Forces
SOWT Analysis
Corporate Strategy
Business Strategy
Coca-Cola Life Cycle
BCG Matrix
Recommendations
 COCA-COLA History
 Coca-Cola history began in 1886 when the curiosity of
an Atlanta pharmacist, Dr. John S. Pemberton, led him
to create a distinctive tasting soft drink that could be
sold at soda fountains.
 He created a flavored syrup, took it to his
neighborhood pharmacy, where it was mixed with
carbonated water and deemed "excellent" by those
who sampled it.
 Dr. Pemberton's partner and bookkeeper, Frank M.
Robinson, is credited with naming the beverage "Coca-
Cola" as well as designing the trademarked, distinct
script, still used today
 COMPANY OVERVIEW

 A leading manufacturer,
distributor and marketer of
non-alcoholic beverage
concentrates and syrups
 The company owns or
licenses more than 500
brands
 It operates in more than 200
countries
 The company is
headquartered in Atlanta,
Georgia
Coca-cola Products
Our vision serves as the framework for our road
map and guides every aspect for 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
Our Roadmap start with our mission, which is
enduring. It declares our purpose as a company and
serves as the standard against which we weigh our
action and decisions.

 To refresh the world.

 To inspire moments of optimism and
happiness.
 To create value and make a difference .
The main objectives for the Coca-Cola Company are

 To be globally knows as a business that

conducts business responsibility and ethically.
 To accelerate sustainable growth to operate in
tomorrow’s world.
 To maximize share owner value over time.
 To maximize long-term cash flow
 To ensure the strongest and most efficient
production, distribution, and marketing
systems possible
By having these objectives , it forms the
foundations for companies in decision making
process .
Political Forces:
*Stability of government ( after 25th Jan. and
30 June
*Tax Law
* Attitude towards foreign companies

Economic Forces *Interest Rate

*Inflation Rate
*Energy cost &availability
*Wages ( Low labor cost
 Social Forces: *Population growth rate
*Life style changes
*Religious orientation (Ramadan
Season)
* Age distribution: 0-14 years:
32.3% - 15-24 years: 18% - 25-54
years: 38.3% (2013 estimate)

Technological Forces:
*Spending on R&D
*Telecom Infrastructure
*Internet availability
*Media(TV&Radio
 Medium
Pressure
Entry Barriers

Low High Low

pressure Pressure pressure
Bargaining Power Rivalry among Bargaining
of Suppliers Competition Power of Buyers

Medium to High
Threat of
pressure
Substitute
Threat of New Entrants: Medium Pressure
 Economies of scale
 Switching costs
 Capital requirement
 Product differentiation (variety)
 Access to distribution channels
Threat of Substitute: Medium to High pressure

 Availability of substitutes

 Switching costs

Coca-cola doesn’t really have an entirely unique

flavor. In a blind taste test, people can’t tell the difference
between Coca-Cola and Pepsi.
Bargaining Power of Buyers: Low pressure
 The individual buyer has small pressure on
Coca-Cola
 Large retailers, like Carrefour, have bargaining
power because of the large order quantity, but
the bargaining power is lessened because of
the end consumer brand loyalty.
Bargaining Power of Suppliers: Low pressure
Raw materials of soft drink industry include CO2,
water, sugar, syrup, plastic, glass, tins, etc.
 Amount purchased from supplier
 Switching costs
 Suppliers forward integration
Rivalry Among Competition : High Pressure

 Monopolistic competition

 Product characteristics
 Strengths Weaknesses

1. Global presence 1. Negative publicity

2. Brand awareness 2. Low profits in strong areas
3. Logo famous 3. Decline in cash flow
4. Strong marketing and advertising 4. Supply is restricted
5. Significant focus on carbonated
5. Customer loyalty drinks
6. Bargaining power over suppliers 6. Brand failures or many brands
7. Corporate social responsibility with insignificant amount of
8. Strong distribution channels revenues
7. Carbonated drinks have bad
physical effects
 Opportunities
1. Bottled water consumption growth
2. Increasing demand for healthy food
and beverage
3. Growth through acquisitions
Threats
1. Changes in consumer preferences
2. Water scarcity
3. Negative health effect
4. Decreasing gross profit and net
profit margins
5. Competition from PepsiCo
6. Saturated carbonated drinks
market
New Products New Region

Horizontal Integration
 Degree of Differentiation
Low High

High
Relative Cost
Low
 Emerging Growth Maturity Declining
Money

SALES
PROFIT

Time

Coca-Cola has more than Life Cycle , on which had a new products
and in the same time they are on the Maturity stage
High

Star Question Mark

Cash Caw Dog

Low

High Low
 Coca-Cola should try to have product differentiation for carbonated drinks through R&D
 Coca-Cola should spend more R&D on avoiding bad physical effects of carbonated drinks.
 Coca-Cola should focus on non carbonated drinks as bottled water and healthy drinks
 Coca-Cola should start producing new products rather than beverages as food and snacks
to enter a new life cycle
 Coca-Cola should think about Vertical Integration :
- Backward Integration: Produce raw Material
- Forward Integration : Distribution ( Coca-Cola Stores )
 Coca-Cola's distribution channel is mostly through retails. Whereas the competitors also
concentrates more on Restaurants and Coffee shops. Coca-Cola should try to increase
their distribution in these areas .