Coca-Cola Company: Internal and External Environment Analysis

This presentation analyzes the internal and external environment of Coca-Cola Company, including competitive advantage, strengths, weaknesses, and recommendations for improvements.

Coca-Cola Company
Name
Institution
Date

Scope of the Presentation
The presentation uses Coca-Cola Company as
a case study to explain;
 Internal and external environment issues
affecting the business
 Competitive market advantage
 Weaknesses and Strengths
 Recommendations for improvements

Introduction
Market analysis-
- Is a business strategy that involves the
monitoring the internal and external
environment of a business.
Importance:
- Watching external and internal factors
influencing the success of a business (Gaile-
Sarkane, 2011)

Overview of the Organization
Company name: Coca-Cola
Year: 1886
Main Competitor: Pepsi
Products are in two categories
- Sparkling beverages
Water
Juice drinks
Sport drinks
Energy drinks and coffee
- Nonalcoholic beverages:
sprite, diet coke, fanta, and coca-cola (Regassa &
Corradino, 2011)

Internal EnvironmentIs mostly contained
in its management.
These include;
 effectiveness in the
production procedure
 proper organization
skills
 Effective supply
chain procedures
 effective
communication
networks:

Competitive Advantage
The loyalty and brand image
- makes it difficult for new competitors
Adopts expensive advertising strategy
 Has a record of heavy advertising leading to
the high brand equity and loyalty
Impact: The strategy limits the possibility of
a new competitor into the market

External Environment
The keenly monitored external aspects
comprise of;
customer attitudes- good customer attitude
towards its products (Regassa & Corradino,
2011).
 instabilities in the economy -
demographic patterns.
Impact- It may affect the customers
reception

Strengths
The strengths of the
business lies on;
 Strong brand
identity
 Strong customer
loyalty
 Effective social
media marketing (
Njanja, Pellisier, &
Ogutu, 2011)

Weaknesses
Health Concerns
 Most of its products have got high sugar
content while customers are more concerned
with their sugar consumptions due to
diabetes
One product niche
- Concentrates on soft drinks when it has
opportunity to accompany the product with
food beverages like cakes to go with the drinks

Future Sustainability
It future
sustainability is
focused on;
Water stewardship
Proper packaging
Agriculture
Energy and
climate (Regassa
& Corradino,
2011)

Cont..

Strategic Opportunities
Open chances for product diversity
 The business can venture into snacks to go
with the soft drinks (Regassa & Corradino,
2011)
 This will increase its service value and reduce
competition from cafes like Starbucks
Exploring on untouched niches like healthy
food spices
- The strategy will expand its profitability from
only focusing on soft drinks

Related Risks for the Business
Climate change-
 Limiting the availability and use of water
which is the main raw material for the
business (Regassa, & Corradino, 2011)
Alternatives to healthy drinks
 There are increased cafes producing drinks
with less sugar
 Results; reduced customers & change in taste
and preference

Conclusion
Coca Cola has spent money and time in its
marketing into the giant it is in the global
soda industry.
It is missing out on spreading into the food
related avenues hence giving Pepsi easy
occupation.
It is well known hence can use its iconic
brand to expand into other developing
markets

Gaile-Sarkane, E. (2011). External and internal
influence on e-marketing . Journal of Economics
& Management, 16947-953.
Njanja, L., Pellisier, R., & Ogutu, M. (2012). The
Effect of External Environment on Internal
Management Strategy. International Journal Of
Business & Management, 7(3), 194-205.
Regassa, H., & Corradino, L. (2011).
Determining the value of the coca cola company
— a case analysis. Journal Of The International
Academy For Case Studies, 17(7), 105-110.