Bargaining Power of buyer: (Low)
• The individual buyer has no pressure on Coca-Cola (Porter’s Five Forces In Action: Sample Analysis of Coca-Cola).
• Large retailers have bargaining power because of the large order quantity. Consumer brand loyalty lessens the bargaining power (Porter’s Five Forces In Action: Sample Analysis of Coca-Cola).
Bargaining Power of Supplier: (Low)
• The main ingredients for soft drink include carbonated water, phosphoric acid, sweetener, and caffeine. The suppliers are not concentrated or differentiated (Porter’s Five Forces In Action: Sample Analysis of Coca-Cola).
• Coca-Cola is one of the largest customers of any of these ingredients (Porter’s Five Forces In Action: Sample Analysis of Coca-Cola).
Rivalry
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Coca Cola with its vast global presence and unique brand identity is definitely one of the most recognizable brands in the world (Bhasin, 2017).
Secondly, company valuation will be discussed. Coca Cola is one of the most valuable companies in the world. Coca cola is valued around 79.2 billion dollars. This valuation includes the brand value, brick and mortar factories, and assets spread out across the world. Which includes the complete operations cost and profit of Coca cola (Bhasin, 2017).
Next, Coca Cola’s global presence will be discussed. Coca Cola has operations in 200 countries across the world. They are wide world in present in almost every market. This is what allowed Coca Cola to build its brand name (Bhasin, 2017).
The final strength will be customer loyalty. With such strong products, it is natural that Coca cola has a lot of customer loyalty. Their products have a huge fan following. Due to the loyalty to Coca Cola’s flavor, finding substitutes becomes difficult for the customer (Bhasin, 2017).
There are weaknesses that are present with Coca Cola as well. These weakness covers competition with Pepsi, absence of healthy beverages, and water management.
The first weakness is its competition with Pepsi. Pepsi is the only company that knocks Coca Cola off the top of the mountain. It is the only company that can look Coca Cola into their eyes and not blink. The competition in these
The existing concentrate business is largely controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure.
PepsiCo is the 3rd largest manufacturer of food and beverage products with a total just shy of 30 billion dollars in sales, while Coca Cola is the 5th largest manufacturer of food and beverage products with a total of 21.5 billion in sales. The products that both PepsiCo and Coke Cola concentrate their manufacturing efforts on are products that are easily consumed and/or prepared. Therefore, PepsiCo leads the sales in convenient food and beverage category, sustaining 22% of sales. Coca Cola also has a large percent of total sales in this category coming in under PepsiCo with 12%. One important thing to remember when evaluating PepsiCo and Coca Cola is that although PepsiCo may outperform Coca Cola in a number of key statistics, this is not the case when
The soft drinks industry also exhibits heavy competition elevating the buying power of consumers. Although Coca-Cola and Pepsi Companies are the players with much dominance in the soft drinks industry, other players are also broadening their market share every day. Coca-Cola and Pepsi Companies exhibited a combined market share of approximately 90 percent in the 1990s (Yoffie, 2011). However, Coca-Cola and Pepsi Companies today exhibit a market share of 70 percent in combination, with the other companies in the soft drinks industry exhibiting a combined market share of 30 percent (Yoffie, 2011). This heavy competition can be linked to the high availability of substitutes in the soft drinks industry. Although Coca-Cola and Pepsi Companies grew in popularity because of producing Carbonated Soft Drinks (CSDs), CSDs have gradually lost their appeal among consumers since customers are increasingly becoming health conscious. This
The Coca-Cola Company is America’s number one soda brand and has been consumer’s drink of choice for decades. Coca-Cola does not sell just for its great taste, but also for its effective marketing strategies and sustainability. According
The market share of soft drink industry actually has to maintain by spending and investing huge amount of money on advertisement and marketing. The advertising cost of Coca-Cola was $3.3 billion in 2012. Such a high cost makes it very hard for a new competitor to survive in the market and expand visibility. Moreover, due to the highly recognized brand name of Coca-Cola, the strong loyal customers’ base would not easy to switch to a new product. Therefore, it is nearly impossible for a new comer to compete in the soft drink industry.
Coca Cola is an international organization which is operating in more than 400 countries. It deals in the beverage industry and is leading the industry for years. Coca Cola is a competing brand, which has made its place in the market competing against several brands. Coca Cola is considered as the leading brand and is ranked as number 1 international brand, according to the ranking of 2011. Coca Cola deal in the beverage industry and provides people with several products. It is a well-known name and people all around the world knows about it. Headquarters of Coca Cola is in Atlanta, and the company has been operating for more than 126 years (Wise and Baumgartner, 1999). In 1886, the company was formed and since then it has been serving millions of people around the globe. Coca Cola is the lead brand of Coca Cola Company, which is the greatest reason of its recognition. Despite many competitors like Pepsi Co, the company has been able to maintain its position in the
The Coca-Cola organization has made exemplary strides mainly to offer a variety of products to its clients even with the competitive nature of the market. Consumers’ choice gets based on the brand aspect in which the organization wins most customers' heart against its rivals. Even though a significant number of people deny cases to having inclination picking between Coca-Cola items or its rivals', many have a strong desire in some way. Many inclines toward Coca-Cola products since the organization has more than hundred years of history and predictable brand image. This picture is engraved in a lot of people subsequently end up purchasing their beverages. It is out rightly conspicuous in the company’s high market share in the field of soft drinks.
The Coca-Cola Company is a strong multinational company with a well-established trademark that has done well since 1886. The company has improved its marketing strategies to satisfy customers in a better way. Since its establishment, it has effectively differentiated itself by being considered as the largest manufacturer, marketer, and distributor of non-alcoholic syrups
Coca Cola is considered to be the world’s largest beverage company which offers consumers with a wide variety of refreshment beverages. The company was established in 1886 and has since continued to grow globally. Coca Cola offers over 500 sparkling and still brands of products and offers more than 3,800 choices of beverages worldwide (Coca-Colacompany.com, n.d.).
“Coca-Cola brands are available to consumers throughout the world. Today they account for 1.7 billion servings of all beverages consumed worldwide daily. Coca-Cola has the edge in the market and because they are first to capitalize on new consumer trends. They continue to focus on continuous operating improvements, and they are ever changing to meet market demands. Pepsi Co satisfies the needs of its customers with the wide variety of products offered. They also have the different type of beverage or snack and its brands can substitute for each other. Coco-Cola and Pepsi Co is known as the top 100 most valuable brands in the world.
Founded 129 years ago in 1886 by Dr. John Styth Pemberton, the Coca-Cola Company is a multinational corporation and producer, retailer, and distributor of nonalcoholic beverage. For over 20 years, it has been one of the biggest brands and is recognized by 94% of people all over the world. There are many factors that contribute to the success and reputation of Coca-Cola, the following essay will discuss briefly about how Coca-Cola dominates the beverage industry in the 21st Century.
The history of Coca Cola began in 1886 when Dr. John S Pemberton, an Atlanta pharmacist created a tasty soft drink which could sell at soda fountains. Since then, Coca Cola grew to be a global brand and touched great heights. Today, it sells across 200 countries and is just as popular across all the markets and nations. The company today, owns or licenses and markets more than 500 non alcoholic beverage brands. The brand has only few major competitors in the global market. The daily servings of coca cola are estimated to be at 1.9 billion globally. (Coca-Colahellenic, n.d.) This is just another proof of the popularity of the brand which has a very large and diversified
Being active in more than 200 countries, with a 120 years of history, this brand is noticed as the biggest in the world and it has come top of an Interbrand poll of all global brands. It is now estimated that Coca-Cola 's brand is worth £39bn.
Coca-Cola Company is the world’s largest beverage company with almost 500 different types of brands, such as Coca-Cola, Diet Coke, Fanta, Sprite and etc… Coca-Cola is founded is Georgia 1886 by the pharmacist call Dr. John Smith. Dr John Smith caramel color liquid and carried out to the street with a jug. The drink was accepted by the customers and they commented this drink is special. So they sold it through the pharmacy for 5 cent per glass.