Coca Cola External Factors

Analysis Summary
 

Weighted
External Factors Weight Rating Comments
Score
Opportunities
Bottled water is an awesome opportunity
for Coca Cola Company to expand on
because they already have the network,
Focus on bottle brand and distribution channel to make
0.15 3.0 0.45
water business this a success. They have the budget to
be the best they can in this niche just like
their biggest competitor I doing thus a
race against time.
Coca Cola came late into this game and
it needs to do more to continue its
generational reigns in the beverage
industry since this is what the current
Focus on health trend in the industry is focusing and
0.15 2.0 0.3
and wellness embracing. It’s collaboration with honest
tea is a good example of a directional
change which will put Coca Cola on
many potential customers minds that
consider healthy choices.
It has the infrastructure to crash most
small and upcoming businesses but if it
happens to find one that is established
enough by all means it should acquire
them due to its strength in the industry
there’s shouldn’t be any excuse on why
Acquisitions 0.05 2.0 0.1 it should acquire whatever it sees fit.
Seen purchasing some brands like
vitamin water maker Glace au in
2007, buying stake at K-cup coffee
maker Keurig Green Mountain and
Monster Beverage are great strategic
moves.
Packaging 0.12 5.0 0.6 This has always been working for Coca
innovation Cola and it should keep up with it,
because it is a differentiator like no
other. The bottle shape is one thing Coca
Cola company has made clear and has
 worked for them because all over the
work the shape of the bottle is been
recognized globally and now they just
need to come up with other innovations
to make that will guarantee the future of
Coca Cola like using creative barcode
labels and more.
These markets that are able to afford
most of Coca Cola products and the
massive current and population numbers
can put Coca Cola and its products
Focus on Asia and profitable for generations if done right.
the European 0.25 2.0 0.5 These large economies are growing at a
markets good pace and expected to rise 3.7
percent in 2018 alone, which is
impressing and good for business, and
Coca Cola should definitely concentrate
on them.
This is vital for this company to be able
to survive, yes they have cornered the
market in the beverage business but they
need to use it’s infrastructure to expand
Diversify in other and bring to the market more products to
products than the same customers. It has been doing
0.28 1.0 0.28
beverages in that lately by acquisitions like the when
countries it acquired Chi Ltd. a Nigeria-based
leading dairy and juice and even the
launch of its flavored milk brand Vio in
India are just a prime example that the
company is learning.
Total 1.0 15 2.23
 

Threats
Since PepsiCo is their main competitor,
Coca Cola needs to come up with better
strategies to combat them or it will
continue losing badly not only on the
diversification of the products but also
PepsiCo 0.32 5.0 1.6 on the beverages side of the business.
PepsiCo is not stopping anytime soon,
and has taken a good market share from
them and has the financial muscle to go
on an all-out war them, which it has for
years.
Raw material 0.2 4.0 0.8 This is an issue for most companies not
 just in this industry and so Coca Cola
needs to figure out the best way that is
environmental friendly and sustainable
for the long run because it’s products
depend on the raw materials to be
available, affordable and sustainable. It
has improved lately by taking various
initiatives that gives the company the
lead role while being positive to its
supply chain including taking concrete
action plan to address land rights in its
supply chain, including zero tolerance
for land grabs.
Every time a customer makes a different
choice at a restaurant when it comes to
beverages, it’s a loss for Coca Cola, thus
is its vital for them to put more effort to
overshadow these competitors in each
and every way through marketing,
Rise of indirect  collaborations with third parties or long
and unintended 0.15 3.0 0.45 term contracts with restaurant chains like
competitors how it did with McDonalds. Coca Cola
Should look into Starbucks strategy
which is actually expanding because it
given people the purpose to make
purchase of their products despite of
being more sugary than Coca Cola but
still making money due to its marketing.
This is a sensitive issue even though not
yet critical, but it needs to be handled
and strategies in place to avoid any
major mishaps. A company as
humongous as Coca Cola can’t please
everyone, and has been good so far but
Negative publicity. 0.05 2.0 0.1 they have to start addressing things from
the top to bottom especially in the age of
social media and conscious customers or
it can really be a major issue soon. It
needs to market its products the right
way avoid negative attention as seen
with the issues with its labeling.
Rising costs of 0.15 3.0 0.45 Coca Cola has started curbing this with
production and the franchising of most of its bottlers but
labor resources its operational costs are still high due to
its large sheer size. It just needs to be
strategic in curbing these expenses as
 part of its long-term strategy in order to
be competitive, thrive and profitable.
This is vital for any business at any stage
of the business.
This is another issue that the company
needs to figure out how it will deal with
this now and in the future because
governments and health critics are
constantly adding more pressure on how
it labels it’s products and so coca cola
would need to find that happy medium
 Regulatory to still be able to operate and also advise
0.13 2.0 0.26
scrutiny all its ingredients and pros and cons. The
continuing issues that caused some states
to charge extra tax on sugary products to
discourage consumptions and it’s
affiliation with scientist that only favor
the Coca Cola company is some issues
that the company would have to figure
out to handle now in the future.
Total 1.0 19 3.66