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Internal Analysis of the Coca Cola Company
Internal analysis is one of the most critical tools, which ensures short and long-term sustainability of any organization. This is due to the fact that internal analysis is one of the promotions planning process, focusing on the product or service offering as well as the entire organization. This includes the capabilities of the organization to develop as well as the successful integrated marketing implement, a key factor that enhances the profitability of the firm. According to Epstein and Birchard (2000), internal analysis of the strengths as well as the weaknesses focuses on all internal factors, which give organizations the particular advantages and disadvantages towards fulfilling the needs of the target market. This paper will candidly conduct an internal analysis of the Coca Cola Company.
Strengths of the Coca Cola Company
As indicated in the part 2 of the SLP Project, the Coca Cola Company is the largest company that manufactures, distributes, as well as sells non-alcoholic drinks globally. Headquartered in Georgia, the USA, the firm has conquered both domestic and international markets, a factor that has enabled it to enjoy high brand loyalty, as compared to the competitors, such as the Pepsi Company among other notable brands. Currently, the firm sells more than 400 brand products to at least 210 countries, thus making the firm to be a market leader in this segment. There are several notable strengths possessed by the Coca Cola Company, which have enabled the fruition of the vision held by the firm (The Coca Cola Company, 2012).
The vision of the Coca Cola Company serves as the framework for the firms’ roadmap as well as guides all aspects of the businesses by candidly describing what has to be accomplished by the firm. This has enabled Coca Cola Company to have a sustainable and quality growth. One of the notable strength possessed by the firm is its brand name. Interbrand (2011) argues that a strong brand name is one of the most crucial elements ensuring that a firm remains competitive and profitable despite intensive competition from closely related firms. The Coca Cola Company has enjoyed a relatively high value of its brand name for a long time, both in the domestic and international markets. According to Business-Week and Interbrand (2011), one of the branding consultancy firms based in the USA, recognizes that fact that the Coca Cola Company is one of the leading brands.
Other firms, which of late have enjoyed this kind of the brand value, are Apple Inc, a consumer electronic company having a brand value worth at least $60 billion, Facebook, a social networking site, approximated to have a brand value worth over $ 70 billion, and Google Inc., the leading search engine globally, approximated to have a brand value worth $ 90 billion, among other notable firms (Interbrand, 2011). Despite the hard economic times, which have faced most of its customers globally as a result of high food and fuel prices in the international markets, the Coca Cola Company has continued to enjoy a relatively high brand value, approximated to be over $67.7 billion as at 2010 (Interbrand, 2011). This can be attributed by the ability of the firm to manufacture and sell high quality products, such as Coke, at the reduced prices.
The other strength of the firm that has enabled the fruition of its vision is the robust growth in revenues in its three segments (The Coca Cola Company, 2012). For instance, in 2008, the firm recorded double digit growth in Bottling Investments, Pacific Rim and East, South Asia, and the Latin America. In all these segments, revenues rose by at least 12. 6%, with the Bottling Investments recording 19.9%, they were the highest during that year. Generally, this robust growth in revenues has contributed to the top-line growth for the Coca-Cola Company, hence helping the firm attain its vision.
As argued by Anderson and Lehmann (1994), the Coca Cola Company possesses various competitive advantages, which have enabled the firm remain profitable, since its establishment in 1887. One of the main competitive advantages is the management expertise. The firm provides the company with experience in management through various management training programs, which helps in developing executive capabilities, experience, and knowledge. The other competitive advantage enjoyed by the Coca Cola Company is the market leadership. Unlike close competitors, such as PepsiCo, it is hard as well as costly to imitate the Coca Cola Brand, since it is recognized by over 90% of all people globally (Anderson and Lehmann, 1994). Other competitive advantages include collaborative customers’ relation, channel marketing, go-to-market strategies, flexible sales, as well as distribution channels among others.
There are several internal weaknesses, which have hindered the fruition of the firms’ vision. One of the weaknesses is negative publicity of its products. For instance, in India among other Asian markets, Coke is said to contain pesticides as ingredients, thus causing cancer to its consumers. While these allegations are not true, they have significantly reduced the number of loyal customers, hence lower profitability in the region. The other weakness is the sluggish performance in the North American region, the core market that usually generates over 30% of the total revenues. This can be attributed to the inefficient marketing strategies, the raised level of competition, the lack of venturing into organic products among other notable factors.
Evaluation of Module 3 SLP
This module has significantly sharpened my minds on the importance of the internal analysis for any organization. Through the internal analysis, a firm can be able to evaluate its strengths and weaknesses, hence ensuring short and long-term sustainability. For the Coca Cola Company, one of the strengths is its brand name, which is well-known by more than 90% of all people globally. One of the weaknesses is the negative publicity of its products, especially in the Asian Markets.
In conclusion, the Coca Cola Company should candidly deal with these weaknesses so as to enhance its competitive advantages in the market. Taking this his way, the firm will remain profitable, hence fruition of its vision.