The Coca-Cola Company

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Industry General Description The Coca-Cola Company - American multinational corporation operates in a nonalcoholic segment of Beverage Industry. The history of the industry goes back to the 17th century, when the first marketed soft drink came to the Western Market. The Beverage Industry product portfolio consists of soft drinks, carbonated beverages, and alcoholic beverages. Kinds of drinks in a non-alcoholic segment varies a lot and includes such beverages as tea, coffee, juices, carbonated drinks, water. The Beverage Industry is a highly competitive one and tends to be dominated by a few major actors. The two biggest worldwide known and most influential companies are Coca-Cola and Pepsi. The limited growth opportunities make this competition very intense, requiring companies to follow the trends and be always aware of the competitors' progress. However, the demand for the products depends a lot on the economic conditions within the society. Those few big players enjoy the benefits of the strong loyal customer base during the growth and stability stage in the economy, whereas in times of economic difficulties customers turn to cheaper substitutes. Thus, although the key feature of the industry is that it is very difficult for a new unknown company to enter the market and compete with well-known long-established businesses, the companies should pay significant attention to the new entrants, especially in times of economic instability. Consumer tastes are also seasonal, meaning that the demand for the carbonated beverages is higher during the hot months of the year. Shifting consumer preferences bring the concern of operating uncertainty, which greatly affects pricing strategies. The large companies pay reliable dividends... ... middle of paper ... ...The chart below shows a direct comparison between the p Works Cited Coca-Cola Needs Less Fizz in Its Products to Get More in Its Stock, Yahoo Finance, 2014. Web. Industry Analysis: Beverage, Value Line, 2012. Web. Coca Cola Enterprises Hits 52-Week High, Yahoo Finance, 2014. Web http://biz.yahoo.com/e/140220/dps10-k.html http://csimarket.com/stocks/singleProfitabilityRatiosy.php?code=DPS&itx http://www.stock-analysis-on.net/NYSE/Company/Coca-Cola-Co/Analysis/Income-Taxes#EITR http://www.stock-analysis-on.net/NYSE/Company/Coca-Cola-Co/Analysis/Income-Taxes#EITR http://financials.morningstar.com/income-statement/is.html?t=PEP®ion=usa&culture=en-US http://www.reuters.com/finance/stocks/companyProfile?symbol=KO.N http://www.pitt.edu/~cls181/engineeringcompanies.html http://bizfinance.about.com/od/yourfinancialposition/ss/financial-ratio-analysis-tutorial-101_7.htm

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