The Coca-Cola Company is the world’s largest beverage Company. The firm has grown quickly becoming a real empire, which owns or licences more than 500 brands, in 200 different countries, employs 146,200 workers all around the world, and sells 1.7 billion units each days. Also, the company has a portfolio of more than 3,800 products, composed of sparkling and still brands, such as waters, sports drinks, energy drinks, juices, or even teas and coffees. Some of its brands include Coca cola, Sprite, Fanta, Dasani, Minute maid and Vitamin after, among others ("Coca-Cola At A Glance").
The company’s stock is referenced on the New York Stock Exchange and is part of the Dow Jones Industrial Average, the S&P 500 index, and the Rusell 1000 Index. The Coca-cola company has been a publicly traded company since 1920. On September 20, 2016 one share was purchased for $42.41 and the Coca-Cola company’s market capitalization is 128.87 Billion.
In order for Coca Cola Company to be successful, it must gain a competitive advantage against other companies operating in the same industry. The company has put various strategies in order to be competiti...
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... bargaining power of buyers and rivalry among existing firms. The threat of new entries in the industry is insignificant because Coca Cola invests heavily on advertisement leading to customer loyalty and thus making it hard for new entrants. The soft drink industry is also full of substitutes presented to end consumers. However, Coca Cola has put up strategies to continuously enhance image to minimize this threat. The bargaining power of buyers is significant due to the many choices availed by Coca Cola. There are few suppliers with great bargaining power. Coca Cola invest on supplier diversity to decrease bargaining power of the suppliers. Lastly, the main competitor of Coca Cola is Pepsi. The other competitors have a very low market share. Moreover, Coca Cola has continuously invested in advertising and differentiating to compete with Pepsi and the other companies.
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