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Mgt 599 Module 2 Case

In: Business and Management

Submitted By mlhu12
Words 1034
Pages 5





Executive summary:
Conducting a PEST and a Porter's five forces analysis on the entire business operations of Coca Cola Company will play part in deriving the various opportunities and threats that the company faces. The scope of the analysis will involve the entire coca cola company. The appropriate NAISCS code for the company is 312111 (DATAMONITOR: The Coca-Cola Company, 2011).

Coca Cola Company is the leading company in the production of non alcoholic beverages and drinks throughout the globe. The company has its headquarters in Atlanta where it has a total of 139,600 employees. The company serves over 200 countries around the globe (DATAMONITOR: The Coca-Cola Company, 2011).

Porter's 5 Forces:
Porter's five forces will provide an overview of the supplier power, the existing threats of new entrants, threat of substitutes, buyer power, and the degree of rivalry which results to rivalry being born. Various industrial characteristics available in the beverages industry where Coca cola is located has resulted to the development of rivalry. Low levels of product differentiation are one on the factors which has led to the development of rivalry.
Looking at the threat of substitutes which is characterized as low, Coca cola's price elasticity is not affected by the substitute products since the company has a limited number of substitutes when it comes to the products that they purchase. The level of the existing price competition of Coca Cola Company is therefore considered to be low.
The reason behind this is that the company is involved in the sale of a wide range of commodities which requires that the company carries out advertising (Principles of marketing, 2012).
Looking at the buyer power, Coca Cola Company is known to have a strong buyer power in that...

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