Limkokwing University BMGMT3202: Strategic Analysis of Coca-Cola

This presentation provides a strategic analysis of the rivalry between Coca-Cola and PepsiCo in the global market. It includes an introduction to the companies, followed by strategic planning considerations. The presentation then delves into external analysis using PESTLE, internal analysis using SWOT, competitive analysis, and industry analysis using Porter's Five Forces. The analysis covers various factors influencing the beverage industry, such as political, economic, social, and technological aspects, as well as legal and environmental considerations. The presentation concludes with a summary of the key insights gained from the analysis of the competitive landscape between Coca-Cola and PepsiCo.

Strategic
Management

Hello!
In order to determine the intensity of rivalry
amongst Coca-Cola and PepsiCo in the
global market, various analyses will be
conducted in this presentation. With regards
to this, strategic planning, internal and
external analysis, industry and competitive
analysis, etc. will be conducted. 2

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Vs

Table of Content
- Introduction
- Strategic Planning
- External Analysis
- Internal Analysis
- Competitive Analysis
- Industry Analysis
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Since a very long time, Coca-Cola and
PepsiCo are selling various types of
beverages and fast food items. In this
context, both companies are trying to
control the whole market along with
gaining competitive advantage. This
rivalry is since 1950s and yet, both the
companies are in constant battle in
terms of controlling the market share
Introduction
5

Strategic Planning
Strategic planning is a
combination of objectives, plans
and policies which is done to
develop effective organizational
strategies with regards to attain
competitive advantage in the
marketplace.
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Want big impact?
Use big image.
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External Analysis [PESTLE Analysis]
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Political
Political factors such as
government’s policies,
interest of political
parties, etc. influence
the performance of
beverage industry
Economic
GDP, inflation rate,
interest rate, exchange
rates, etc. factors are
some of the crucial
factors which affect the
performance of PepsiCo
and Coca-Cola
Social
Social factors such as
target customer’s
tastes, preferences,
recent trends, affect the
demand of products
Technological
Technological advancement is necessary for every company in every
industry as it helps them to meet its customer’s demand in time.

to be continued…
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Legal
Soft drinks are part of FMCG
(fast moving consumer goods)
market. Thus, regulations
imposed by every country with
regards to the production and
distribution of FMCG products
needs to be considered while
developing strategies.
Environmental
Major environmental issues
which Coca-Cola, PepsiCo and
other soft drink manufacturer
face are over-utilization of
ground water and other water
resources

Internal Analysis [SWOT]
Strengths Weaknesses
Coca-Cola PepsiCo Coca-Cola PepsiCo
 Strong
brand
reputation
 Creative
and solid
brand
marketing
 Growing
product
portfolio
 Global
experience
 Brand
Equity
 Customer
Loyalty
 Less
diversified
portfolio
 Value
addition
 Competition
 Product
dependency
 Failed
products

to be continued…
Opportunities Threats
Coca-Cola PepsiCo Coca-Cola PepsiCo
 Various
successful
brands to
pursue
 High brand
recognition
 Healthy
drinks
 Improve
brand
image
 Improve
customer
relations
 Research
and
developmen
t
 Intense
competition
from
PepsiCo
 Imposition
of taxes
 Health
factor
 Competition
from Coca-
Cola
 Economic
slowdowns
 Government
norms and
regulations
 Health
factor

Competitive Analysis
PepsiCo: Being a global
leader in soft drink,
organization focuses over
meeting customer’s needs
and enhancing brand
value by synchronizing
with local and traditional
events
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Coca-Cola: They set
up brand image and
reliability amongst the
target audience by
synchronising with
mega and popular
events such as Cricket
World Cup, FIFA World
Cup, etc.

Industry Analysis [Porter’s Five Forces]
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Bargaining
power of
customers
Threat of new
entrants
Threat of
substitutes
Bargaining power of suppliers
Industry rivalry

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Thanks!
Any questions?