coca cola’s competitors - texas tech universitykimboal.ba.ttu.edu/mgt 4380 fall 2012/00… · ppt...

Coca-ColaSydne Collier

Amanda HainesJacob Johnson

Eric LaunerKatie Shaw

Zachary SlagleMark Weyandt

Introduction

Brief History of Coca-Cola Company

Business Operation

Industry Analysis

Company Capability

Environmental Analysis

Competitors

Performance Indicators

History

John Pemberton, created the syrup in 1886

Asa Candler took control of the Company in 1891 after the death of Pemberton

1916, the unique contour bottle was introduced.

125 years later, Coca-Cola Company has marketed over 400 brands and over 2600 different products in over 200 countries worldwide.

Organizational Life Cycle

• Phase 1 – Initiation

• Phase 2 – Formalization

• Phase 3 – Expansion

• Phase 4 – Coordination

• Phase 5 - Participation

1886-1905

Birth of Coca-Cola

Shareholders

Growth

1905-1923

Formulation

Introduced Bottle

New Places

Stock Prices

1923-1980

Robert Woodruff

WWII

Great Depression

1980-Current

Diet Coke

Sports

120 countries

1 billion servings per day

Coca-Cola Organizational Chart

Industry Analysis

Ease of Entry

Growth within Industry

Intensity of Competition

Industry Analysis (Cont.)

Substitute Products

Bargaining Power

Technology

Innovation

Managerial Factors

Social responsibility◦Veterans Day celebration

Organizational structure: decentralized

Ability to attract and retain people

Meeting competition

Competitive Factors

Customer loyalty and satisfactionMarket shareInvestment in research and

developmentSupplier strength

Financial Factors

Access to capital

Profitability

Financial stability

Technical Factors

Level of technology used

Production effectiveness◦Invest $30 billion in new equipment

Newness of equipment and technology◦$100 contract with Dell

Strength of patents

Environmental Scan

Economic Factors◦Recession

Political Factors◦Childhood Obesity and New York

Social Factors◦25 and under

Environmental Scan

Technological Factors◦PlantBottle

Competitive Factors◦Pepsi

Geographical Factors◦200+ countries

Coca Cola’s Competitors

Top selling soft drink company in the world

Main competitors◦PepsiCo

Company(Pepsi)◦The Dr. Pepper

Snapple Group(Dr. Pepper)

Financial Comparisons

Total Revenue

Net Income Total Employees

Coke 47.6 Billion 8.8 Billion 146,200

Pepsi 65.70 Billion 5.92 Billion 297,000

Dr. Pepper 5.97 Billion 625 Million 19,000

What they Compete On

Regular Cola◦ Coke Leader

Diet Cola◦ Diet Coke Leader

Lemon Lime ◦ Sprite Non caffeinated leader, Mountain Dew caffeinated

LeaderOrange Flavored

◦ Fanta LeaderRoot Beer - A&W Leader

Future Success

Coke is obviously the most successful soft drink out there

Less people drink Soda

Have to be innovative to continue to be leader

Market Share

Industry Leaders◦Coca Cola: 43%◦Pepsi Co: 31 %◦Cadbury Scweeps: 18 %◦Other: 8%

Sales Growth

Increasing trend in revenue

2011 fiscal year first quarter◦Increase in net income by 18%

Annual divided yield◦High compared to other companies

SWOT Analysis

Strengths Weaknesses

Leading brandsCustomer

loyalty/relationshipsManagementProduction Quality

◦ Bottling process

Weak Brands◦ Odwalla

Poor access to distribution

ManagementLow customer

retention

SWOT Analysis

Opportunities Threats

Changing customer tastes

Technological advances

Change in population age

New distribution channels

Closing of geographic markets

Technological advances

Tax increasesChange in population

ageNew distribution

channels

Competitive Strength Assessment

Key Success Factors◦Quality/product performance◦Reputation/image◦Customer service capability◦Technological skills◦Manufacturing capability◦Marketing distribution◦Financial strength◦Relative cost position

Strategic Issues

Employees offering to sell trade secrets

International problems related to unions

Trouble with distributers

Inflated earnings

Racial discrimination

Contamination scares

Improving the Company

Corporate Giving◦Water stewardship◦Healthy and active lifestyles◦Community recycling◦Education