...PROJECT PLAN Competitive Advantage of the Coca Cola Company: Porter’s Competitive Force Model and the Business Value Chain Model This plan outlines the Competitive Advantage of Coca Cola Company regarding Porter’s Competitive Force Model and the Business Information Value chain. The purpose of the plan is to provide the general view of the firm, its competitors, and the environment it operates. The five competitive forces of Porters model shape the fate of the firm through; Customers and suppliers, substitute products and services, traditional competitors, and new market entrants. This project plan will take up to 4 week, using Porter’s Competitive Force Model to identify the firm’s competitive forces and highlight specific activities in the business where competitive strategies can best be applied and where information technology helps and the impact it brings to the company competitive position. PROJECT SCHEDULE Task: Management Information System Project Duration: Four (4) Weeks Due Date | Day | Time | Job Specification | Lecture’s Approval | Comment | O9/10/15 | Friday | 11 am | Introduction and Background of the company | …………..Date: | | 16/10/15 | Friday | 11 am | Industrial Analysis: * Porter’s Five Forces Model * Business Value Chain | …………….Date: | | 23/10/15 | Friday | 11 am | Firms Competitive ForcesExternal Environment * Strength WeaknessInternal Environment * Opportunity & Threats | …………..Date: | | 30/10/15 | Friday | 11 am...
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...Conducting a PEST and a Porter's five forces analysis on the entire business operations of Coca Cola Company will play part in deriving the various opportunities and threats that the company faces. The scope of the analysis will involve the entire coca cola company. The appropriate NAISCS code for the company is 312111 (DATAMONITOR: The Coca-Cola Company, 2011). Introduction: Coca Cola Company is the leading company in the production of non alcoholic beverages and drinks throughout the globe. The company has its headquarters in Atlanta where it has a total of 139,600 employees. The company serves over 200 countries around the globe (DATAMONITOR: The Coca-Cola Company, 2011). Porter's 5 Forces: Porter's five forces will provide an overview of the supplier power, the existing threats of new entrants, threat of substitutes, buyer power, and the degree of rivalry which results to rivalry being born. Various industrial characteristics available in the beverages industry where Coca cola is located has resulted to the development of rivalry. Low levels of product differentiation are one on the factors which has led to the development of rivalry. Looking at the threat of substitutes which is characterized as low, Coca cola's price elasticity is not affected by the substitute products since the company has a limited number of substitutes when it comes to the products that they purchase. The level of the existing price competition of Coca Cola Company is therefore considered to...
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...………………………..…..2 Introduction 4 Task 01 – Report 6 (LO 1.1) Strategic context 6 (LO2.3) Stakeholder analyzing 9 (LO2.1) Organizational audit 11 Porter’s Value Chain for Coca Cola Company 11 VRIO Framework 14 (LO 2.2) Environmental audit 16 PEST analysis 16 Porter’s five forces analysis 18 SWOT analysis for Coca Cola Company 20 (LO1.3) Different planning techniques 22 Product life cycle 24 BCG Matrix 25 GE Matrix 26 (LO1.2) Criticisms of strategic planning 27 (LO 3.1) Ansoff’s Growth Strategies 29 (LO3.2) Future strategy for the Coca Cola Company 33 (LO4.1) Roles and responsibilities for strategy implementation 34 (LO4.2) Resources requirements for new strategy (Water purification system) 36 (LO4.3) Time scale to monitor the strategy 37 Conclusion 38 References 39 List of Figures IV. IV. Figure Page Number Figure 01 – Stakeholder analyzing 9 Figure 02 - Porter’s Value Chain 11 Figure 03 - VRIO framework 15 Figure 04 - PEST analysis 16 Figure 05 - Porter’s five forces analysis 19 Figure 06 - BCG Matrix 25 Figure 07 - GE Matrix 26 Figure 08 - Ansoff’s Growth Strategies 29 Figure 09 - Ansoff’s Growth Strategies for Coca Cola 32 Figure 10 - Time scale……………………………………………………………………......37 Introduction In this assignment describe the strategies of the Coca-Cola Company. Because of this module can understand important of the business strategies for the organizations. These things are helping us to applying things into working...
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...strength to seize current and potential market. These moves will lower the benefits of existing business and the return of investment. To prevent this situation happen, Coca-Cola will set different barriers to discourage the potential entrants. I will discuss other enter barriers. Product differentiation One of the most important factors to determine whether a business can be successful is whether they have the compared advantages. It is very important to use the differentiation strategy to make your products known by the customers. Products that easy to remember and recognize by the customers are different from others. This difference can be the service of the company, the high quality, the name of brand. All of these characteristics will set up the customers loyalty in the market. Under the advantage of differentiation strategy, even though the new entrants maybe try their best to attract the customers with lower prices or other things, they may still suffer a loss in profit because the loyalty of the customers. Capital requirement Whenever and wherever people decide to entry a industry, he has to have enough capital recourses to support the necessary operating. Capital resources are a very important part in capital incentive industry such as beverage industry and airline industry. The industry where Coca-Cola located is a long-term industry. The large amount of costs on raw material and other stuff are needed. Also, the dispose of raw material and...
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...Coca Cola was one of the Leading brand during 1970’s, made to exit due to foreign policies. After re-entering a hiatus of 16 years, Coco Cola has reached to each and every corner of India. Being one of the largest beverage companies in India, Coca Cola is now available through length and breadth of India. An Introduction to Coca Cola India:- Coca cola is a well-known American beverage giant, which sells concentrated soft drink worldwide. The journey for Coca cola begins when Pharma Scientist John Pemberton first formulated Coco Cola recipe in 1886 in Columbus, Georgia. Later in 1889, Coca Cola formula and brand was sold to Asa Candler who then incorporated the company Coca Cola in 1892. Rest is a history as the world knows. Coca Cola is now currently offers more than 500 products over 200 countries. Coca Cola has first opened its bottling plant in New Delhi in 1950 and existed in the market till 1977. India was not the easiest place to conquer for Coca Cola during 1970’s. Domestic brands such as Limca, Thums up were dominating brands in India at that time. By the time Coca Cola exited Indian Market in 1977, it was one of the leading soft drink brand. In 1977, when Morarji desai led Janata Party came into power, new foreign trade act called Foreign Exchange Regulation Act (FERA) was implemented. Under this regulation act, foreign companies were made to dilute its equity stake to its Indian counterparts if they wish to remain in the country. However has refused to...
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...industry as being influenced by five forces. A strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. In this paper I will use the five force model, as a Coca-Cola Company Business Manager to understand the Cola industry and try and develop an edge over rival firms. We will discuss each of the models individually and develop an understanding of where Coca Cola stands. Threat of New Entrants: Penetrating the soft drink industry is hard because of the established name of Coca-Cola and the other following reasons: Brand Image: Coca Cola invests enormous amount of money in marketing and advertising which has led to customer loyalty all over the world. People might not recognize Bill Gates or Warren Buffett if they are on a television show, but even a child who cannot read will recognize Coca Cola on television. We ran into a similar situation in the class room when the professor recognized a can of Coca Cola without even looking at the name printed on it. This makes it next to impossible for a new entrant to get in the market and compete with Coca Cola. Advertising: As mentioned above Coca Cola spend enormous amount of money on marketing and advertising, in 2011 alone the company spent $3.3 billion which makes it exceptionally hard for a new competitor to compete and gain visibility in the market. Retail and Global Distribution: Coca Cola in combination with its bottling...
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...Jakobsen Problemformulering Lav et kort virksomhedsportræt af Coca Cola og redegør for deres CSR politik herunder: * Vision * Mission * Værdier Lav en analyse af virksomhedens CSR og dens praktiske anvendelse af CSR. Vurder på baggrund af analysen om der er sammenhold mellem deres CSR politik og deres praktiske anvendelse af CSR, samt Coca Colas fremtidige strategiske muligheder. Abstract This paper investigates how much and in which ways Coca Cola Enterprises uses CSR. The importance of CSR has grown over the last couple of years, and with the major brand Coca Cola has, it is of great importance to Coca Cola Enterprises. With Porter’s Five Forces I have analyzed the competition on the market, and which advantages it gives Coca Cola Enterprises when they use CSR. I have also used Porter’s generic strategies and through analysis I figured out which strategy Coca Cola Enterprises use. Coca Cola Enterprises uses the strategy called differentiation. This strategy is making customers prefer your product, and giving it a special value to the customers. CSR is about taking responsibility, and Coca Cola Enterprises does that. They do that in many ways for example with sustainable bottles and cans. The result shows that Coca Cola Enterprises uses CSR a lot. Through the analysis I have come forward to that Coca Cola Enterprises especially uses CSR in their marketing. This paper also shows that Coca Cola Enterprises has many strategic opportunities in the future, for...
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...Industry Analysis: Soft Drinks Barbara Murray (2006c) explained the soft drink industry by stating, “For years the story in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavors…and looking to noncarbonated beverages for growth.” In order to fully understand the soft drink industry, the following should be considered: the dominant economic factors, five competitive sources, industry trends, and the industry’s key factors. Based on the analyses of the industry, specific recommendations for competitors can then be created. Dominant Economic Factors Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry, illustrated in Table 1. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft drink industry is lucrative with a potential for high profits, but there are several obstacles to overcome in order to capture the market share. The growth rate has been recently criticized due to the U.S. market saturation of soft drinks. Datamonitor...
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...Cola Wars Case Study DMBA 630 Marketing and Strategy Management in the Global Markeplace Introduction Carbonated Soft Drinks (CSD) have been around for over a century and now accounts for a $60 Billion market with the average American consuming about 53 gallons a year. Coca-Cola was invented in 1886 by John Pemberton as a “potion for mental and physical disorders.” Asa Candler acquired the formula and began marketing it as Coca-Cola. The first bottling franchise was accorded in 1899 for a sum of one dollar. Pepsi-Cola was invented in 1893 by Caleb Bradham a pharmacist from North Carolina. Pepsi also franchised its bottling operations. Pepsi struggled over the years going bankrupt twice within a decade, first in 1923 and again in 1931. Pepsi competed aggressively against coke offering almost twice the amount of Pepsi for the same price in the 1930s. Coca –Cola or Coke on the other hand was the market leader through the early 20th century with numerous imitators popping up trying to clone Coke. Coke fought back in the courts to aggressively deter imitators and counterfeiters. During the 1920s and 1930s, Coke was marketed to multiple market segments making it available to anyone desiring the brand. Eventually Coke sued Pepsi for trademark infringement in 1938 and lost. Pepsi gained market share and became a titan competitor in the market for CSDs beating out all other brands except Coke. Thus began the “Cola Wars” in 1950 with Pepsi’s aggressive “beat Coke”...
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...CONTENT PAGE 1. INTRODUCTION..................................................................................................3 1. Information System: An Overview............................................................3-4 2. Brief history of Coca-Cola.........................................................................4-5 2. Analysis of Internal and External Forces............................................................5 1. The Coca-Cola SWOT Analysis...................................................................5-7 1. Internal Forces.......................................................................................8-9 2. External Forces.....................................................................................9-10 3. Information System Incorporated.....................................................................11 1. Value of Information System......................................................................12 1. Value Chain Analysis...........................................................................12-13 2. Competitive Advantage..............................................................................14 4. CONCLUSION....................................................................................................15 5. REFERENCES..............................................................
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...Coca-cola Introduction Coca-Cola Amatil (CCA) is the Australia's market leader in the manufacture and distribution of soft drinks, including Coca-Cola, Fanta, Sprite and Mount Franklin (CCA,2010). It operates its company in different countries in Asia-Pacific regions: Australia, Indonesia, New Zealand and Fiji. Coca-Cola was introduced to Australia in 1937 and the first manufacturing plant was also begun operating in Sydney in 1938. In this essay, I will use the 5 competitive forces model to discuss in context of CCA providing a general view of the company, its competitors and company's environment. Competitive Forces According to Porter's competitive forces model, there are five competitive forces, traditional competitors, new market entrants, substitute products, customer bargaining power, supplier bargaining power and services (QuickMBA.com n.d.). These can help managers to know about the industry in which the company operates. The model can also locate situation of the company in order to make relevant decision towards to the problem and create competitive advantage (Porter 2008). The force of traditional competitors is high in beverage industry because there have many companies selling same products in the market. In order to have higher market share, competitors trend to set lower price and introduce new products attracting more customers to buy. This will lead high level of price competition in the market. Competitors always introduce new products and services...
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...PepsiCo: External Considerations Overview PepsiCo is popularly associated with its flagship product Pepsi Cola. While Pepsi Cola is a sizable portion of PepsiCo’s revenue stream, PepsiCo actually has significant revenue generated from a slew of other products and divisions such as PepsiCo Beverages North America, PepsiCo International, Frito-Lay and Quaker Foods North America (Overview, 2005). PepsiCo’s Pepsi Cola has long been second in market share to Coca-Cola and the competition between Pepsi and Coke has been the stuff of business school legend for many years. However, thanks to a series of strategic acquisitions and market entry moves internationally, PepsiCo as a company has finally overtaken Coke in overall market share and performance: “PEPSICO...has raced ahead of...Coke in overall growth rates. PepsiCo earnings last year surged 18% to $4.2 billion on revenues of $29.3 billion, up 8.5%...Coke's 11.5% earnings growth to...4.4% revenue growth to $22 billion for 2004” (Steiner, 2005, para.2). It could be said that PepsiCo has lost the cola battle but won the overall war with its archrival Coca-Cola Company. PepsiCo has done this by becoming a snack food and beverage Company with operations in more than 200 countries worldwide, over 143,000 employees both national and international and over $4 billion in revenues (PepsiCo, 2004, p.4). Increasingly, PepsiCo, as most other large MNCs have done, is relying on overseas expansion to fuel its future growth and earnings...
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...CHU HAI COLLEGE OF HIGHER EDUCATION 2010-2011 SEMESTER 2 BBA 353 STRATEGIC MANAGEMENT Group Case Study Project The Coca-Cola Company Tsang Hoi Ki Chan Ho Yin Fung Tsun Wai Chan Ka Po Yuen Sze Wing Chan Tai Hoi Yan Yue Kan (200826001H, (200826002H, (200826004H, (200826019H, (200826020H, (200826027H, (200926024E, FNE) FNE) FNE) FNE) FNE) FNE) FNE) Abstract This paper is a strategic analysis of The Coca-Cola Company (Coca-Cola), a leader in the beverage industry. Coca-Cola, the world’s leading soft drink maker, operates in more than 200 countries and owns or licenses more than 500 brands of nonalcoholic beverages. The company faces challenges in today’s market because of market changes, socio-economic changes and globalization. An external analysis of the soft drink industry is performed to understand the impact of environment. An internal analysis of Coca-Cola is performed to understand the internal capabilities. The conclusion of this case study emphasizes that the company needs to reduce its dependence on carbonated beverage and diversify its product portfolio into the noncarbonated sector to remain competitive. 2 Table of Contents Abstract .............................................................................................................................. 2 Section 1: Introduction ................................................................................................... 5 1.1 1.2 1.3 Mission and Objectives ..........
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...Executive Summary The Company for analysis is the Coca-Cola Company. It operates in the soft drinks industry. This company is known to be among the oldest companies that manufacture non-alcoholic beverages. Among the main competitors of Coca-Cola is Pepsi. Coca-Cola is a multinational that has subsidiaries in almost every corner of the globe. It is a publicly traded company with a current market price for its stock at 46.39 % as at 31st March 2016 which translates to a deviation of 0.41%.An analysis of Coca-Cola Company reveals that Coca-Cola is currently grappling with issues related to its market share, quality of its soft drinks and production processes. These problems have in turn decreased their market share and its competitive advantage. Competitors have taken this as the advantage to increase their sales and revenue. The notable competitors for Coca-Cola Company are Pepsi, Nestle S.A, Dr. Pepper Snapple group inc., and Nestle Waters France. This study undertakes an analysis of Coca-Cola's industry with an aim of finding the root causes of these problems and how Coca-Cola can overcome them. Michael Porter’s five forces model, ratio analysis, analysis of market capitalization, business model, and strategy are some of the main approaches that this study applies in analyzing the Coca-Cola Company. Nevertheless, the Coca-Cola Company remains competitive, and investors should not avoid from investing in Coca-Cola. Coca-Cola produces several brands of non-alcoholic beverages...
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...Applying Five Force to Almdudler Introduction Almdudler is a self-confident brand that continuously displays the determination to be successful in the marketplace. They seem extremely optimistic and assured that their brand can eventually reach high plateaus. According to the article their numbers are continuously rising throughout. With increases such as 1.7 percent in Austria and increases internationally through exports, it seems that this brand has an extremely bright future. Furthermore, the article states that consumers worldwide are beginning to be familiar with the brand. With Almdudler preparing to enter the US market their plans to diversify their brand with different types of drinks seems promising. However, is that enough to draw American buyers? It will be a significant challenge for Almdudler to be successful in a country that has a soft drink industry that is tremendously competitive and diverse. Five Force Model: Threats of Substitute Markets One of the aspects in the five force model is threats and substitutes from other companies. The main traits of this category are: • product differentiation • and what aspects would attract consumers to this particular brand of soft drink. Although awareness for Almdudler has risen significantly internationally, in this particular industry, Coca Cola remains dominate. Globally its diverse brand of soft drinks and juices, has for many years...
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