Analysis of Market Competition and Financials for Coca-Cola Company

This report analyzes the market competition for Coca-Cola over the past four years, focusing on how competitive factors have affected the company's financial standing. It begins with a SWOT analysis, highlighting Coca-Cola's strengths in investment flow and capital value, while also pointing out weaknesses in increasing debt and decreasing current assets. Opportunities lie in diversification and market expansion, particularly in developing countries. Threats include rising liabilities and water scarcity. The report then applies Porter's Five Forces model to assess industry competition, the threat of new entrants, supplier and customer bargaining power, and the threat of substitute products. The analysis emphasizes the intense competition from major players like Pepsi and Nestle, as well as local brands, and the growing threat from healthier beverage alternatives like health drinks, coffee, and tea. The report references financial data and market trends to support its conclusions, providing a comprehensive overview of Coca-Cola's competitive environment.

Running head: MARKET COMPETITION FOR COCA COLA
MARKET COMPETITION FOR COCA COLA
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1MARKET COMPETITION FOR COCA COLA
Competitiveness in the market in the last four years: Coca Cola
The following is an analysis of the ways in which the competitive factors have affected
the source of funds for Coca Cola over the last 4 years.
SWOT Analysis
Strength
One of the significant strengths of the organization over the last four years has been the
flow of investments. It has kept more or less on the rise in the last 4 years. Additionally, the
company has been able to develop significant amounts of capital value (Sec.gov 2019). The
company valuation is also on the positive side for the organization. This means that the company
is well equipped to tackle the immediate risks.
Weakness
The principle weakness that has emerged in the last few years in the debt value. The debt
of the organization has increased over the last four years. The total current liabilities of the
company has increased to about 29.2 million USD in 2019 (Macrotrends.net 2019). The total
current assets have decreased to 30.6 million USD from 36.5 million US dollars in 2017.
Opportunity
One of the major area of opportunity for the company is diversification. Diversification
can improve the finances of the organization in the next few years. The company needs to
improve the market functions in the developing countries. It is important to consider some of the
most important emerging markets.
Threat
The increase in liabilities for the company has been identified as a major threat. This has
the potential to negatively affect the organization in the future. A major identified threat for the
organization is water scarcity and negative impact on the system cost and capacity.
Porter’s Five Forces
Industry competition

2MARKET COMPETITION FOR COCA COLA
The industry competition is significantly large as along with the larger competitors Pepsi
and Nestle, there are many local brands that provide high competition in the various markets
where Coca Cola operates. The company need to consider the competitive factors as highly
important areas of business. The competition is increasing fast.
Threat of new entrants
There are various new entrants that are entering the vast markets of Coca Coal. This
means that Coca-cola would need to pay more attention towards the emerging local players in
the markets of the developing countries. The threat of new entrants are significantly high.
Bargaining power of suppliers
The bargaining power of the suppliers are low as Coca –Cola pays much more than the
other companies. In this case the suppliers can most importantly chose Pepsi as an option.
Bargaining power of the customers
The bargaining power of the customers are high. This is owing to the development of the
more diversified beverage products by the competitors. The bargaining power of the customers
are high and increasing significantly. This is a high risk for the organization.
Threat of substitute products
There is a growing trend of ‘healthier beverage consumption’ among a large number of
potential customers across the world. This makes sure that is significant availability of the
substitute products (Coca-colacompany.com 2019). The most important substitute products are
health drinks, energy drinks, coffee and tea. Tea and coffee is being presented to the consumers
in different but innovative ways by many companies.

3MARKET COMPETITION FOR COCA COLA
References
Coca-colacompany.com. (2019). [online] Available at:
https://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/
2015/02/2014-annual-report-on-form-10-k.pdf [Accessed 4 Oct. 2019].
Sec.gov. (2019). Document. [online] Available at:
https://www.sec.gov/Archives/edgar/data/1652044/000165204419000004/goog10-kq42018.htm
[Accessed 9 Oct. 2019].