MKTG1000 Case Study Assignment

SWAPBOX CASE STUDY

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 Executive Summary
In this era of technology, different sources for entertainment for
everyone are there. In 1970’s. video games were introduced for the
first time and nowadays, they have been places as source of fun and
entertainment for everyone whether they are children, youngster and
are of any age. These games are very popular among children.
Popularity among children is the major reason of growth of this video
game market at global level. There are also researches going on the
video games to find out the impacts of video games on the children
which suggest children to avoid negative impacts of video games on
children. Though, skills of children can also be polished by playing
time management games to complete different tasks. Parents must
give their children a limited time slot to play mind video games to
make their mind fresh but they must also encourage them to play
outdoor games. Physical activities are also very important for health
which keeps their mind and body fresh. Now a days videos games
comes with the age rating and parents should only allow games to be
played according to their children’s age.
 Introduction

Changing lifestyle, technological innovations and latest inventions of consoles

has led to an increment in importance of online and offline video games. Video
games are today played for enjoyment, competition and even for the living of
the people. People are playing video games like Apex Legends, PUBG etc and
streaming them on various platforms available like YouTube, twitch etc. People
are making so much money by streaming games because there are lot of fans,
who can’t afford those consoles and video games but they get entertained by
watching their streams which are played live on these platforms. When we are
asked in schools that what we wanted to do in future, the answers always seem
like astronaut, doctor, teacher etc. There are very few people who could have
answered that I will play video games for living. Gaming have become a skill in
this new era of technology. People are making thousands of dollars every day
by winning gaming competition, playing live streams through various platform
at a single time by just playing a single game. They are also making videos of
their gameplay which they post on YouTube for the extra earning through
different types of ads. These things make it attractive for users to buy their
membership also. There is a lot of hard work behind maintaining our YouTube
gaming channel and constantly editing and posting videos according to the
perfect and correct time.
 Situation analysis
 Internal Factors

Educating and Empowering workers:

In the year 2013, Coca-Cola got mentioned in 26 notable lists, which
includes the World’s 25 Best Multinational Workplaces 2013. This is the
recognition of brand having efforts for their workforce and a fantastic way to
promote a company.
Labour and Human Rights:
These rights provide all the stakeholders with the chance to inform observed
violations of Code of Business Conduct, Workplace Rights, or other
violations. Transmitting powers in the company reduce the chances of
corruption.

Health and Safety:

94% of company-owned facilities follow Coca-Cola Workplace Rights
Policy. The rate of lost-time incident is incredibly low as it dropped to 1.9 in
year 2013. Company must keep a healthy and safe environment so that
people can work efficiently.

Environment:
Energy efficiency in Coca-Cola company is constantly improving. As we
can see from the year 2004, its efficiency increased by 20%. The company
has converted more than 100 service vans into hybrid-electric vehicles in US
to sell their drink.
In 2020, Coca-Cola announced a program to reduce their carbon footprint by
25%. They also even announced its commitment to balance water usage by
2020. Which lead to increase in water usage efficiency. From 2010 to 2013,
it had improved by 8%.
  External Factors (PESTLE ANALYSIS)
Political:
At this time, gaming industry is booming at very high level and prices of
games are also booming at very large scale. This has led many people to
download and install pirated or counterfeit or copied video games. These
pirated of counterfeit games are prohibited in various countries like UAE.
Companies like Microsoft are collaborating with the organisation in UAE to
capture the pirated goods of several kinds which includes video games and
software also. Specialized courses are given to the custom inspectors to
combat commercial frauds which allows them to uncover any steps made to
threaten the national security.

Economical:
Gaming industry is also having very great contribution in the economy of a
country these days. The GDP growth was 2.7% as compared to 2.6 in 2009 to
2010. The economy has faced may challenges which includes dependence on
oil, inflation rate and expatriates and large inflation.

Social:
We know that now a days, people are moving towards the healthy diet chart
because most of the people have obesity issues caused by sugars and carbonated
drinks. This thing is the most important social change that has directly affected
the sales of Coca-Cola.
Due to this reason, the amount of consumption of soft drink has steadily
decreased during the past 20 years. On the other hand, bottled water
experiencing an increase during the same period.
Technology:
Appearing technology and having the latest one plays a vital role for the success
of a company. Idea of better-quality products with high quantity requires new
machinery. Repeatedly changing in the products can force companies to change
their present machinery also.
Other technologies need to include the promotion of their products. Coca-Cola
and all other companies are using wisely using the social media for cheaper
advertisements for their products but also to connect with their customers.
Surveys are launched on several websites like YouTube during the ads. People
also post their picture holding or drinking Coca-Cola's products which helps a
lot in advertising their products. There advertisements are like free for them.
Legal:
In today’s time, it is particularly important to patent our own ideas, products,
formulas so that other cant copy it and use them legally.
The Coca-Cola company has all the rights of their business and all inventions
and production are patented. They are also legally bound to the regulation FDA.
They also have major partnerships with big companies like WWF and Special
Olympics GB.

Environmental:
Water is essential to produce Coca-Cola. But fresh water accessibility rate is
declining due to climate changes. If the water scarcity rises extremely high. This
will result in major loss of the company. To fight this problem, Coca-Cola
adopted a carbon reductive strategy which includes switching to cleaner energy
sources. They are also trying to reduce the environmental impact by collecting
rain water, recovering and recycling it.
COCA-COLA SWOT Analysis
Strengths
 Brand Equity: Coca-Cola got
Interbrand which is the highest of its
kind in year 2011. The huge
presence and unique brand identity is
one of the expensive brands with
highest brand equity. One of the
biggest and valuable companies on
the earth, has a valuation of 7.2
billion dollars. This valuation
includes assets, factories, and brand
value around the word. Coca-Cola is
presented in each country around the
world due to its vastness. Coca-Cola
has the largest market share and a
monopoly with Pepsi as its only big
competitor but still far behind. There
are plenty of brands owned by Coca-
Cola around the world like Maaza,
Thums Up, Sprite, Diet Coke, Fanta,
and Limca.
 Customer Loyalty- Coca-Cola has a
strong history of taste which has
built customer loyalty over the time.
This company have a large fan
following so people today prefer
their drink for better taste. The
quality of their drinks is also
remarkably high which makes hard
for customers to find an alternative.
Opportunities:
 Diversification – Changing or by
adding products can improve the
options fort Coca-Cola’s customers.
This thing will also ensure the larger
revenue generation due cross selling
their products.
 Developing nations – Developing
countries have market which is
saturates as near as developed
countries. This will result in massive
gap in the market, Coca-Cola can
take advantage of this and make
massive profit.
Weaknesses
 Competition with Pepsi:
Pepsi is constantly trying to
stay ahead of the Coca-Cola. Coca-
Cola would certainly be the only
market leader and company is
ensuring that Coca-Cola will sustain
its performance. Low Product
Diversification – Coca-Cola
products are only limited to soft
drinks which keeps them in one
market making them saturated for
any major improvements. Absence
in health beverages – The soft drinks
are having negative social stance.
People are more aware of the health
risk by drinking artificial drinks
involving obesity for example.
Carbonated drinks are big reasons
for fat intake, and Coca-Cola is the
biggest manufacturer of carbonated
drinks.
 Water management- Coca-Cola has
faced problems in the past due to
lack of its wate management.
Threats:
 Raw material sourcing – The one big
threat to Coca-Cola is water. The
problem is the increase in scarcity of
water sources. Climate change, and
area within several countries which
are facing water scarcity may result
in production of Coca-Cola products
in favour of needed water.
 Indirect Competitor – There are
several numbers of coffee chains like
 Packaged Drinking water – Starbucks and Costa Coffee are on
Packaged drinking water has seen a the rise. They offer a healthier drink
massive increase in terms of sales. alternative than Coca-Cola’s soft
Coca-Cola owns Kinley focus more drinks. They will just have a minor
on expansion with company to impact however they will make a
increase their market share. dent in its market.
 Supply Chain Improvement – Their
business is totally based on
transportation and distribution of
their products to always improve this
section.
 Market the lesser selling products –
Coca-Cola own a massive number of
the other products, some of which
have yet to reach their potential.

Appropriate Strategic Opportunity