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The DEEPLIST refers to the demographics, economic, environmental political legal, information, social, technology as well as the competitive environments within a business. On the other hand, The SWOT refers to the strengths, weaknesses, opportunities as well as the threats existing within a business environment.
DEMPGRAPHIC FACETS refer to the overall composition of the population in terms of age, sex, culture, religion as well as education. The demographic changes within a population are perceived to affect the market, the workforce as well as the availability of the resources needed for production.
In the Coca-cola case study, the product cut across all genders as well as age since it constitutes a soft drink which is consumable amongst all the population structures irrespective of there gender, race, culture, age and even religion. It is evident that the Company has developed distinctive products which target specific markets. For instance, Coke is one product which targets the adult part of the market while Fanta and Sprite targets the kids and the youth respectively. This fact has been established through the fact that the product sold tremendously across the globe. The idea grew from its humble beginning in Atlanta, Georgia to the serving of the whole population in the globe. Another factor which cements this argument is the fact that Coca-Cola managed to increase its revenue share in the market displayed by the significant increase in revenue figures posted each and every year. It is indicated that by the year 2000, Coca-Cola Company together with its long time competitor Pepsi Company will have owned at least 76% of the total market share altogether.
THE ECONOMIC FACET refers to the determination of the overall economy in relation to the underlying business. The relationship which links the economy to the business involves taxation, government spending, and the general demand of the product as a whole, the prevailing interest rates, and the exchange rates within the given economy as well as the global economic factors. In this case, the facts provided are directed towards taxation and the general demand of the product. The fact that Coca-Cola Company remains to be one of the top three brands within the United States of America is a strong proof of the argument which portrays its success in tapping as well as in maintaining the current demand for soft drinks in the globe. The case study also indicates that the Company has always been on the forefront advocating for the payment of tax. This is recorded by the fact that Coca-Cola Company bottlers record a pretax profit of 9 percent of the total sales within the particular financial period. The general demand for the product is also stipulated when the company’s fact figures are posted at a very high level. The figures indicate that the Coca-Cola Company is valued at $97.9 billion. This figure reflects the demand for the product at a much wider scale.
THE ENVIRONMENTAL FACET within the DEEPLIST is concerned with activities a business undertakes in order to reduce or rather minimize the negative impact it emits to the environment. A business activity is detrimental to the local community as well as the entire national level so that the impact is either termed negative or positive. Negative ecological facets include congestion, noise air and water pollution as well as the use of non-renewable sources of energy like fossil fuels. According to the facts laid down on the case, it is stipulated that Coca-Cola Company engages itself in making sure that the franchised bottlers adhere to the policy of upgrading there manufacturing plants regularly. This is the case because the wide scale production of the merchandise involves the emission of wastes which pollute the air or the waters in general. The prerequisite that Coca-Cola Company imposes to its bottlers is aimed at improving its recycling program policy especially with bottles as well in the encouragement of the energy management schemes during production possesses.
THE POLITICAL FACET involves any political changes which act towards the development of the business as a whole. In the case study provided, it is unclear to indicate where production processes faced a hostile form of market but it is very clear that the product penetrated in most of the markets around the globe. This is indicated by the fact that the Company managed to establish a wide business empire with the help of the franchised bottlers across the globe. It is logical to stipulate that the Company faced business- friendly environments upon which it developed profusely into a multi-billion company altogether.
The taxation policies as well as the underlying marketing policies within these markets favored the growth of the product as a whole. The legal facet within a business establishment is dictated by the underlying laws of the given market. Governments are mandated to formulate laws for which businesses are obliged to adhere at all times.
THE POLITICAL/ LEGAL FRAMEWORK may also dictate the minimal amount of wages which will be paid to employees. In the case study, the legal framework seems to work somehow positively since the Company has continued to post increases in revenue. However the legal framework seems to affect the franchised bottles negatively in the sense that it has continued to record minimal profits as labor included one of its expenses. The informational facet dictates that a company shall at all times present its financial information publicly. The case study has depicted this requirement to the latter. For instance it has provided the exact figures which indicate the fair worth of Coca-Cola Company as at 2006. The Company is worth $97.9 billion. Franchised bottlers to Coca-Cola have also indicated there respective amounts in terms of percentage pretax profits which are posted yearly.
THE SOCIAL FACET requires the Company to adhere to its policies of taking care of the society for which it conducts its operations. The Company has a corporate social responsibility to its customers, employees, suppliers, owners, the government as well as the local community at large. According to the case study, the customers are satisfied with product and the reason supporting this assumption lies with the level of the established customer base and the worth of the company as a whole. The company has been able to increase the demand for its products to the customers by way of maintaining quality of the aforementioned products. On the other hand, the customers have reciprocated to the gesture by making the brand, one of the most popular brands in the United States market at large. The franchised bottlers have also been assured of the constant production of the concentrated Coca-Cola Product for which they use to manufacture the product at large. The owners of the secret product formula have also been satisfied by the increase in revenue which translates to high profits and have even taken the initiative of improvising the image of the Company when they ensure that the product receives market accreditation as well as protection of the environment through regulation of the manufacturing plants as a whole (Andy, 2009).
THE TECHNOLOGICAL FACET stipulates that a company is bound to embrace the most-current changes in technology in order to increase its level of productivity which in turn translates to revenue or rather profits. In the case study provided, it is indicated that one of the most sought after requirement of Coca-Cola Company lies in the ability of the franchised bottlers to establish manufacturing plants with an automated warehousing structures. According to mySap.Com (2001) the Coca-Cola Company embraced technology in running its planning and consolidating processes. This requirement is encouraged by the fact that automated warehousing minimizes the cost of production as it cuts out on the labor factor. Coca-Cola Company also involves itself with the controlling of the upgrade of franchised bottlers manufacturing plants for the purpose of remaining relevant to the technological advancements made in the business industry altogether (Mottuia, 2005).
THE C+ COMPETITIVE FACET instigates on the rivalry developed by firms involved in the manufacturing of products of the same nature. In the case study provided, the competition environment is represented by Pepsi which has continued to offset Coca-Cola Company in terms of the existing market share. Pepsi has also outshone Coca-Cola in terms of the amount of capital and asset infrastructure with Coca-Cola posting a total asset of $97.9 billion while Pepsi maintaining a lead with an accumulation of $98.4 billion. Competition amongst business entities is a healthy factor since it enhances there respective capabilities to diversifying their production processes thus innovation. Competition is also a positive attribute to customers as they enjoy the provision of quality products at a much reduced price.
The SWOT analysis is meant to expound on the strengths, weaknesses, opportunities as well as the threats of the business as a whole.
THE STRENGHT of the company lies in its establishment and the rich history background whereby it has managed to attract a substantial amount of customers throughout the world. Another strength that the company enjoys lies with the fact it has a huge asset base of about $97.9 billion dollars which it uses to diversify its operation in order to remain relevant within the ever changing market demand as whole. The company has also facilitated and maintained the trust of its customers by way of advertising and also through the provision of quality products. The fact that the company has, over a long period of time, retained the formula as a secret from the public has enabled it to make substantial profits from the formula. The major weakness underlying the company dwells on the fact that the cost of operating a coca-Cola bottling is relatively high hence acts as a deterrent factor to potential markets altogether (Knolls, 2007).
THE OPPORTUNITIES of the company lies in the possession it has on the already established markets. The company is in a better position to dictate the diversification of its product and even allow other for the participation of research and development aimed improving there products. Another opportunity lies with the fact that the company possesses vast experience in the manufacturing of the carbonated soft drinks and can therefore use it to claim an even larger market share.
THE THREATS which are perceived to face the company are greatly associated with competition it faces in terms of market share. It is stipulated in the case study that Coca-Cola Company faces stiff competition from other soft drinks companies and the major competitor being Pepsi. This competition has minimized its capability in terms of revenue allocation. Coca-Cola as a supplier is also threatened by its franchised bottlers in the sense that they are capable of diverging from the policies hence lessening the overall control the company impacts on them.
Scale: 1-10: when the summation of the four variables is less than 10, it means that the Company should probably ignore the underlying issue altogether as there might be no damages involved. If need be, then the issue should be handled within a period of 3-7 days depending on the urgency of the matter.
Scale: 11-15: when the summation of the four variables lies within this scale, it basically means that the issue needs a little bit more attention and the company should find solutions within a day or two period frameworks, that is to say, a period ranging from 48hours to 72 hours in total
Scale 16-20: when the summation of all the three factors is established at a value more than fifteen, then, it basically means that it should be awarded the immediate attention status; the issue should be handled and settled within a period of 24 hours or less. It is an emergent issue in general.
The facets used in the categorization of these factors are seriousness and Impact. While seriousness refers to the level of urgency upon which the Company is expected to act when faced with the challenge, impact refers to the level of the effect which is brought about as a result of the failing to act promptly towards restructuring the aforementioned factor at large.
I believe that Coca-Cola Company has deployed the product –development strategy as part of the Ansoff related investments strategies. This is indicated by the fact that the company has continued to spend a vast amount of money in marketing the product to its customers. The advertising is meant to target both the already existing customers and the potential customers at large. The adverts serves the existing customers with information about the major changes which have been deployed to the products while the potentials customers are lured by these very adverts to initiate the consumption of the product. Adverts are also meant to enhance the loyalty of the existing customers.
It is evident that Coca-Cola Company has perceived the need of its customers and hence found out that it possess the required resources which it can use to enhance satisfaction of the buyer. It is also true to indicate that the Coca-Cola Company deployed market penetration strategy. It should be noted that the main reason for conducting operation using this strategy was out of the fact that the competition from Pepsi Company was growing more and more intense and the only option for it to dominate the market(thus dictate a larger percentage of the market share) was by increasing the consumption of the product. Therefore the company decided to increase its promotional activities as well as expand its distribution channel to accommodate the larger part of the potential target market. This is evident in the case study when Coca-Cola Company embarked on spending a larger part of its revenues in advertising, promotions as well as in the facilitation of distribution channels which develop a strong market ground.
It is also clear to indicate that Coca-Cola Company deployed the growth strategies as part of the porter’s generic strategies. During the application of the growth strategies, Coca-Cola Company differentiated the growth to include the intensive form of growth whereby there was an opening for market penetration, market development as well as product development in the sense that it needed to minimize the aspect of competition from Pepsi and thus increase its total revenues with respect to the increase in the sale of its products.
It will also be true to indicate that Coca-Cola Company practiced the focus form of porter’s generic strategy. In this form of strategy it applied the differentiation technique in the production of its product in order to meet the need of each and every potential customer. Evidence in the case study is portrayed when the Company decided to include other brands in its production so that Fanta and Sprite became other forms of Coca-Cola products. According to my understanding, I think that Coca-Cola Company used the differentiation strategy of the Porter’s generic strategies to its advantage since it was able to increase its demographic market in terms of age, sex and race so that the products manufactured met the demands of each and every potential customer across the globe. It is also logical to indicate that the Company used the product development strategy to its advantage in the sense that the promotions and advertisements performed were meant to achieve the set objectives of maintaining the loyal customers as well as the attraction of a whole new demand of the product.
Using the Ansoff Matrix strategy, I suggest that Coca-Cola Company deploy the diversification strategy, the product-development strategy and the market penetration strategy to avail its products to the greater market demand. Product development strategy is to be conducted for the purpose of meeting the new needs of the customers. Coca-Cola Company should implement this strategy because it holds the financial capability which will facilitate research and development aimed at exploring developed needs of the customers at large. Market penetration is meant to facilitate the availability of the Coca-Cola products to the right place and at the right time. Penetration of the market strategy also makes sure that distribution of the product is achieved at greater levels (Wenses, 1998).
It should also be noted that with the application of market penetration strategy, Coca-Cola Company will minimize the competition and at the same time address the issue concerned with the provision of sufficient services (as a supplier) to the bottlers it had already franchised. Differentiation strategy will act towards the diversification of the products of the company even further so that all the demographic trends are catered for without discrimination. In choosing the appropriate marketing mix for coca-cola company, the market development strategy will, for instance, cater for the product Coca-Cola which is to be set at a medium price level since the product has already been established to its loyal customers.
The suitable distribution channel will involve the already franchised bottlers companies across the globe. The better promotional tactic for this product is intense advertisement. This advertisement will facilitate the growth of new customers as well as in the maintenance of the already existing ones.
In the application of diversification strategy, the Coca-Cola Company has been able to respond positive in its bid of making profits. For instance, when it bought the water company from one of the celebrities, it had the perception of providing its customers with bottled carbonated water. Diversification is meant to facilitate the growth in opportunities which exist outside the current business undertaking. It is mainly targeted through the introduction of new products for new markets. For instance, Coca-Cola Company completed the “mineral water” deal and immediately introduced the product to the market when its competencies were considered to be distinctive and available. In carrying out this strategy, the company must have understood the high risks involved. It also knew very well that the venture required vast amount of resources which it had already acquired at its disposal (Sonor, 2003).
In the fiscal year 2011, the Coca-Cola Company has posted a significant rise in its profits. The profits is said to have been brought about by the resultant growth in its market share of the major markets across the globe. According to Andy (2009), the Company earned a total of $ 2.1 billion which translated to 82 cents a share. The total revenue for the company rose to $10.52 billion which was enhanced through investments made with the acquisition of the largest bottler in the world. The total breakdown for the whole market was as follows, in the North American market the sales volume for the company increased to 6% while it grew to 8% and 7% in the Asian and the African market respectively. It also increased by a significant 1% in the Latin region while in Europe it posted a total of 5percent (Knolls, 2007).
The strongest markets across the globe included, Russia, Mexico and India. In terms of growth of the carbonated drinks, the sales volume increased to 4% while beverages products posted a total of 11%. While the competition remained tough, the Coca-Cola drink was reported to have sold a total of more than 900 million shares thus dictating a market share of 9.5%. in terms of product distribution and performance, the product, regular coke, remained as one of the most sought after drinks across the globe as it took the number 1 position with a sales of approximately 1.5 billion case while increasing the market share to comfortably rest on more than 15% in totals (United States Securities and Exchange Commission,2010). The major challenge facing the Coca-Cola Company rests on the demand it desires to dictate since most of the consumers have opted to consume Pepsi drink due to the fact that it is bought at a much lower price as compared to Coke. Another challenge rests upon the intrusion of its business by the politics especially the Middle East so that its revenue decreased slightly lower in this region as compared to the previous year’s altogether. In terms of product development, the Coca-Cola Company has continued to diversify its products to suit specific market environments. For instance, the Company introduced yet another product altogether to include Fanta Passion to the markets in Africa, Europe and North America. In a bid to participate in the Corporate Social Responsibility, the Coca-Cola Company continues to sponsor major soccer leagues in the world especially in the African continent. Countries like Malawi and Namibia receive full sponsorship in terms of soccer (Noller, 1999). The Coca-Cola Company is also engaged in assisting the less fortunate yet bright kids with there dreams of becoming meaningful people in the society at large. For instance, in Kenya, Coca-Cola Company is operating a charity foundation whereby resource materials are accumulated before allocation to the needy members of the society (Chandresh, 2007). There have been schools and health centers opened and maintained by the Coca-Cola Company in the Eurasian continent. In the next five years to come, it is stipulated by the Coca-Cola Company management that the Company will dictate a market share of about 89 percent thus surpassing its competitors in the Carbonated Soft drinks Industry as a whole (Hellenic.Com. 2010).