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The A - Team. Alex Bojinov Adam Hoque Daisy Oyenuga Doug Fleury Wilson Sales. Agenda Overview. Introduction Broad Environment VRIO Framework Porter value chain Stategic recommendation Conclusion. Coca Cola. Coke is it -- "it" being the world's #1 soft-drink company.
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The A - Team Alex Bojinov Adam Hoque Daisy Oyenuga Doug Fleury Wilson Sales
Agenda Overview • Introduction • Broad Environment • VRIO Framework • Porter value chain • Stategic recommendation • Conclusion
Coca Cola • Coke is it -- "it" being the world's #1 soft-drink company. • The Coca-Cola Company owns four of the top five soft-drink brands (Coca-Cola, Diet Coke, Fanta, and Sprite). Among its other brands are Barq's, Minute Maid, POWERade, and Dasani water. • Although it does no bottling itself, the company owns about 36% of Coca-Cola Enterprises (the largest Coke bottler in the world) and some 40% of Mexico's bottler Coca-Cola FEMSA.(FEMSA produces soft drinks such as Coca-Cola, Fanta, Sprite, and Ciel water).
Coca Cola’s product • Beverages • Nonalcoholic Beverages • Carbonated beverages (Coke, Fanta, Sprite) • Coffee and tea • Energy sport health and nutritional drinks • Juice • Water & ice • Food
The Broad Picture • Sociocultural Trends • Technological and economic • Political and Legal
Product Differentiation • Applied across all products • Recipes for drinks kept secret • Not sold under other brand names
Corporate StrategyGeographic Market Diversification • Coca-Cola has had an international presence from the beginning • Bottled internationally since 1906 • 72% of product created outside of North America
Strengths • Recognizable brand name • Engrained as part of American culture • Bottling system • Diverse product lines
Weaknesses • Unhealthy products • Sales dependent on carbonated drinks • Less diversification than competition • Ex. No snacks division
Opportunities • Bottling arrangement allows large geographic area to be served • Further action to expand health conscious products
Threats • Low threat of direct competition • Threats of substitutes is high • Economic instability in many countries
Strategic Recommendation Innovate and Implement new ideas - • Expand flavored water and energy drink market. • Bottled Water is currently the fastest growing product lines with $35 billion in annual sales worldwide. • Companies are adding vitamins, herbs, and other additives to reduce stress, increase concentration, and improve endurance.
Strategic Recommendation Cont’d. • Declining sales of carbonated beverages • Continuous decrease in sales in recent years • of approximately 2%. • Increased sales of health related goods. • Almost 80% of average baby boomer is almost 60. • Consumers are becoming more health conscious.
Strategic Recommendation Cont’d. • Expand into snack food market • Most rivals such as Pepsi Co. are branching into snack food industry. • Coca-Cola only offers beverages • Recent growth averaging only 4%.
Conclusion Strategic Recommendations • Long Term View • Competitive Advantage • Increase Market Share • Economies of Scale • International Expansion