Activity 1
The company under discussion is Coca Cola. Coca Cola is an American company operating within the beverage industry. It dominates the industry and has branches across the world. The company enjoys numerous strengths, including some weaknesses.
Strengths
Coca Cola has a dominant market share within the beverage industry. Coca-cola owns approximately 3.2% of all non-alcoholic beverages served globally. He firm also owns and distributes an excess of 500 non-alcoholic drinks.
Economies of scale. Coca Cola has a large market share, which allows it to manufacture large volumes of drinks within the companies (Renz & Vogel, 2016). This allows the company to enjoy economies of scale and sell products at a relatively lower price.
Market power on suppliers. Due to the large size of Coca Cola, the company can exercise its power by requiring suppliers to charge lower prices on raw materials, thus enabling a decrease in production cost.
Weaknesses
Competitive pressure. Coca Cola is facing high pressure from its competitor Pepsi and Nestle. This comes amid health sensitive for high sugar products. The company needs to structure itself to face high competition from the two companies.
Currency fluctuations. Coca Cola is a multinational company operating in various countries. Some countries have an inferior currency, which is quickly affected by currency fluctuations (Renz & Vogel, 2016). This is in-turn affects the company’s profitability through conversion.
The company does not venture mostly in healthy drinks. The current economy is moving towards the production of healthy drinks such as energy drinks. Lack of business in this area may affect the competitive nature of the company in the long run.
Company context
Coca Cola is registered under the beverage industry. The company offers non-alcoholic drinks through its companies across the world. The company sells its products through its brand name Coca Cola and offers a variety of products. The company’s competitors produce products such as coffee, energy drinks, and soft drinks.
Customers
Coca-cola sells its products across the globe and treats everybody as a potential consumer and customer. However, the main target of Coca Cola’s products is youth, regardless of gender.
Competitors
The primary competitors of Coca Coal are Pepsi and Nestle. Pepsi produces soft drinks and sells them across the globe (Ling, 2017). it is the primary competitor due to the company’s size and line of products, which is similar to that of Coca Cola.
Collaborators
The most significant collaborator of Coca Cola is McDonald’s, a symbiotic relationship with the company. McDonald’s sells Coca Cola’s products and even uses some of its offices where necessary.
References
Renz, F., & Vogel, J. (2016). Analysis of The Coca-Cola Company.
Ling, X. (2017). Customer Relationship Management: Case study Coca-Cola Company.