Analysis of Coca Cola Company

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1. Introduction

For over 126 years, Coca Cola has been operated as world’s largest beverage company together with its subsidiary brands. The United States, as Coca Cola’s international headquarters, has one of the largest populations where Coke is the main beverage for most of the consumers. The purpose of this essay is to determine whether the environmental changes in the United States are beneficial for Coca Cola Company to operate more markets in the future. This essay will explore both the Coca Cola Company as well as the market in the United States. The tools used for this examination include a SWOT analysis of Coca Cola Company and PEST analysis of United States. In addition, we will examine Porter’s 5 forces of the beverage industry in the United States and we will conclude with a list of recommendations.

2. Company Background

The Coca Cola Company has served various kinds of drinks from 1866 until present. As expected, Coca Cola Company made $48 billion net operating revenues, $9 billion net income, and $162 billion market capitalization in 2012. These huge amounts of earnings in 2012 proving that the Coca Cola Company makes big profit successfully within a year. Besides profit that is achieved, Coca Cola Company also ranked by Interbrand as World’s Most Valuable Brand with $77.8 billion in 2012. Moreover, the company supports over 280 physical activities or nutrition education programs in more than 115 countries around the world (The Coca Cola Company, 2013).

3. Country Background

United States (US) is the world’s third largest country by size (9,826,675 square per kilometer) and by population with 50 states and the District of Columbia (316,438,601 people). The main urban areas by population are Washington, DC...

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