Strategic Challenges Faced By Coca Cola Commerce Essay


Coca Cola is a very identifiable company. Attractiveness is one of its superior strengths that is in effect unrivaled. Coca Cola is known very well worldwide. Its logo is clear and easily acknowledged. Without hesitation, no drink company can stand up to Coca Cola's social popularity position. Some people purchase coke, not only for its taste, but because they feel like they are part of a worldwide group. At the other end of the spectrum, certain individuals choose not to drink coke, based solely on rebelling from the world's idea that coke is something of such great power. Irresistible is the best word to describe Coca Cola's popularity. It is intimidating to think that its recognition has been continuously increasing over the years and the chance that there is still opportunity to grow. If you say the words "Coca Cola", it would undeniably be familiar all around the world. Capital is another thing advantage of the company. Coca Cola deals with colossal amounts of cash all year. Like all companies, they have had financial turmoil and expansion. The money they earn is significantly superior than most beverage companies, and with that wealth, they invest into their own company so that they can progress. Another strong point that is very vital to Coca Cola is client fidelity. The 80/20 rule comes into effect in these circumstances. Eighty percent of their profit comes from 20% of their loyal consumers. Many people/families are very loyal to Coca Cola. It would not be unusual to always find bottles and cases of coke in a house. Clients will persistently buy these products, and will most likely do so for a very long time. If two parents were devoted Coca Cola drinkers, this will most probably be passed down to their family as they grow up loyal. With Coca Cola's capacity to sell their merchandise all over the planet, clients will keep buying what they are familiar with and what they are fond of…Coca Cola products.

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Weaknesses- Coca Cola is a very successful company, with few weaknesses. However they do have a certain weaknesses that need to be handled if they want to rise to the next level. Word of mouth is probably a force and weakness of every company. While many people have good things to say, there are many individuals who are against Coca Cola as a company, and the products in which they produce. Word of mouth unfortunately is something that is very hard to control. While people will have their opinions, you have to try to sway their negative views. If bad comments and views are put out to people who have yet to try Coca Cola products, then that could produce a lost customer which shows why word of mouth is a weakness. Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Cola's drinks. Many drinks that they produce are extremely popular such as Coke and Sprite but this company has approximately 400 different drink types. Most are unknown and rarely seen for available purchase. These drinks do not probably taste bad, but are rather a result of low profile or nonexistent advertising. This is a weakness that needs to be looked at when analyzing their company. Another weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like coke is not very beneficial to your body and your health. With today's constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the product that are labeled detrimental to your health.

Opportunities- Coca Cola has a many opportunities in its business. It has many flourishing brands that it should keep on exploiting. Coca Cola also has the opportunity to promote its less trendy products. With enormous profits it has the money to put some of these other beverages on the market. This could be very beneficial to the company if they could start selling these other products to the same extent that they do with their main products. Another chance that we have seen being put to use before is the capacity for Coca Cola to acquire their competition. This opportunity hardly presents itself in the world of business. Yet, with Coca Cola's supremacy, such a mission is not unfeasible. Coca Cola has bought out a innumerable number of drink brands. An easy way to turn their profit into your profit is too purchase their company. Even though this may cost a lot of money in the beginning, on the long run, if all goes to plan, the fallout are large profits. Also, the company will no longer have to be bothered about this product being part of the competition. Brand recognition is the significant factor affecting Cokes competitive position. Coca Cola is recognized well throughout 90% of the world population nowadays. Currently Coca Cola wants to get there brand name known even better and possibly get closer and closer to 100%. It is an opportunity that most companies will ever dream of, and would be a supreme accomplishment. Coca Cola has an opportunity to continue to widen the gap between them and their competitors.

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Threats- Despite the fact that Coca Cola is almighty on this market, it still has to cope with many threats. Although Coca Cola and Pepsi weigh up for nearly 40% of the entire market of beverages, the shifting health-conscious position of the market could have serious consequences on Coca Cola. This absolutely needs to be seen as a predominant threat. Nowadays, people are always trying to modify their eating behavior. This can seriously affect Coca Cola's sale of products. Another possible issue is the legal side of things. There are always problems with a company of such absolute prosperity and reputation. Someone is always going to try to find flaws and take them down. Coca Cola has to watch out for lawsuits. Health minister should be looked at closely for it could restrain the company's range of action. Once again, people could try to use the unhealthy aspect of Coca Cola's drinks and could harm the position of supremacy over sales. Other threats are competition. Coca Cola's main competitor is Pepsi, which sells a very similar beverage. Coca Cola needs to be careful that Pepsi does not become a more flourishing drink. Extra products such as juices, coffee, and milk are pressure. These other beverage could replace Coca Cola's drinks and this could menace it's success.  

Sales forecast :

Despite a decrease in it's main market, north America, Coca-Cola can without a doubt expend even more through developing countries and south America which seems to have a real potential. Coca-Cola's policy to buy out competition is a winning one for it's an easy way to implement in a new market, sliding in a already existing leading position and tightening it through injections of enormous amounts of money for publicity. This can work on any market, keeping the local brand but helping it develop thanks to ads and commercials which can be seen everywhere. This policy will definitely help Coca-Cola expand to an unknown extent. The only aspect which could slow down it's growth is a health issue. This is one of the main reasons of the decline of Coca-Cola in the developed countries. This aspect is yet easily set aside by the company which has started a while ago developing new products, fruit juices and bottled water. These drinks considered more healthy could greatly help Coca-Cola to maintain it's pole position on the beverage market. I think that it's safe to say that the market will probably stay the same for a long time; only unexpected events could really shake this very atomistic market. Within five years it's growth might shrink a little bit but will surely boom right after that or even in a shorter lapse of time due to the expansion of middle classes throughout developing countries like the BRIC countries but not only, Asia and South America are high potential markets too that Coca-Cola will keep on seducing.