REPORT

ON
INTERNAL ASSESSMENT OF
COCA COLA

SUBMITTED
BY
SYEDA RAKHSHINDA
HAFSA KHAN
SYED ASHER ALI
Internal Assessment 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.

Strengths of the Coca Cola Company

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 500 brand products to at
least 210 countries, thus making the firm to be a market leader in this
segment.

1. Dominant market share in the beverage industry

The Coca-Cola Company is the largest non-alcoholic beverage company in
the world. It serves 1.9 billion or 3.2% of the total 60 billion beverage
servings of all types consumed worldwide every day. The company owns,
distributes and sells over 500 various non-alcoholic beverage brands in
over 210 countries.

Only PepsiCo and Nestlé can compare to The Coca-Cola Company’s sheer

size and the market share in the non-alcoholic beverage segment. Being
large and having dominant market share has a few advantages over
competitors
Figure 1. Largest beverage companies in the world in 2017

Rank Name 2017 revenue (in US$ Beverage

billions) segment

1 Anheuser-Busch 56.444 Alcoholic

InBev

2 The Coca-Cola 35.410 Non-alcoholic

Company

3 PepsiCo Inc. 29.857 Non-alcoholic

4 Nestlé S.A. 29.109 Non-alcoholic

5 Suntory Holdings 22.057 Alcoholic

Limited

6 Heineken N.V. 21.888 Alcoholic

7 Starbucks Corporation 17.650 Non-alcoholic

8 Diageo plc 17.078 Alcoholic

9 Pernod Ricard S.A. 11.132 Alcoholic

10 Molson Coors Brewing 11.002 Alcoholic

Co.

 Economies of scale. Economies of scale allow the company to

share its fixed costs over hundreds of brands and billions of servings,
making each drink as cheap as possible.

 Market power over suppliers and competitors. Due to its size, The

Coca-Cola Company can exercise its market power over suppliers by
requiring lower prices from them. The company can also use its size
to affect the competition by underpricing some of its items, acquiring
 the smaller competitors or saturating the market with many of its own
products.

 Power over the buyers. Unlike some of its smaller competitors, the

Coca-Cola brand and the company’s other signature drinks have an
enormous brand recognition all over the world. The company can
influence consumers’ buying decisions through its brand power and
massive marketing campaigns more easily than most of its smaller
rivals.
 Wide audience reach. The Coca-Cola Company’s distribution
network allows the chain to reach more customers than most of its
rivals could reach. According to the company, the company serves
1.9 billion servings a day, more than any other competitor in the
world.

2. Diversified product portfolio with 21 billion-dollar brand

The Coca-Cola Company owns and distributes over 500 different brands,
which is the most extensive beverage brand portfolio in the whole industry.
The company offers beverages for every taste in 7 beverage categories:
1. Carbonated Soft Drinks
2. Bottled Water
3. Juice & Juice Drinks
4. Sports Drinks
5. Tea & Coffee
6. Energy Drinks & Shots
7. Alternative Drinks

Figure 2. Largest beverage brand portfolios

The most popular company’s drink is Coca-Cola. Coca-Cola trademark
(includes Diet Coke and Coca-Cola Zero) earned around 40% of the
company’s total revenue. While Coca-Cola is the most important product, it
is only one of the 21 billion-dollar brands that the business owns. The
company’s billion-dollar brands include:
The company also owns 13 other brands that each annually earn at least
US$1 billion:

 Coca-Cola
 Fanta
 Sprite
 Diet Coke/Coca-Cola Light
 Coca-Cola Zero
 Minute Maid
 Georgia Coffee
 Powerade
 Del Valle
 Schweppes
 Aquarius
 Minute Maid Pulpy
 Dasani
 Simply
 Vitaminwater
 Gold Peak
 Fuze Tea
 Ice Dew
 smartwater
 I LOHAS
 Ayataka.
Figure 3. The Coca-Cola Company’s billion-dollar brands

No other business in the beverage industry owns as many billion-dollar

brands as The Coca-Cola Company.
What does a diversified portfolio provide for the company? First, The Coca
Cola Company depends less on one or two of its beverages to generate
the majority of its revenue.
Second, with so many beverage drinks in so many flavors, the business
can satisfy every consumer’s needs and tastes.
Third, if the demand for one of the company’s beverages falls sharply (as it
is now with Coca-Cola) the business can rely on other beverages to
generate higher sales.
Few of The Coca Cola Company’s rivals can enjoy such a diversified brand
portfolio, which provides strong competitive advantage over the rivals.
Internal Weaknesses
Coca Cola has limited number of weakness and they need to correct the
weakness if they want to achieve the excellent or next level of
achievements. Strength and weakness are part of any company because
people like to say different things about the company and it creates an
image of the company. Coca Cola has produce excellent or popular
product such as Coke and Sprite but it has approximately four hundred
types of drinks which are unknown to many people.

There are several internal weaknesses, which have hindered the fruition of
the firms’ vision.

1. Significant focus on carbonated drinks

The business is still focusing on selling Coke, Fanta, Sprite and other
carbonated drinks. This strategy works in short term as consumption of
carbonated drinks will grow in emerging economies but it will prove weak
as the world is fighting obesity and is moving towards consuming healthier
food and drinks. 

2. Undiversified product portfolio

Unlike most company’s competitors, Coca Cola is still focusing only on
selling beverage, which puts the firm at disadvantage. The overall
consumption of soft drinks is stagnating and Coca Cola Company will find it
hard to penetrate to other markets (selling food or snacks) when it will have
to sustain current level of growth.

3. Negative publicity
The firm is often criticized for high water consumption in water scarce
regions and 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.

4. Brand failures or many brands with insignificant amount of

revenues
Coca Cola currently sells more than 500 brands but only few of the brands
result in more than $1 billion sales. Plus, the firm’s success of introducing
new drinks is weak. Many of its introduction result in failures, for example,
C2 drink.

Competitive Advantages
Competitive advantage is an ability of a company to perform in one or more
ways that the competitors cannot or will not match. A company must have a
sustainable competitive advantage because it benefits the company in
longer runs. Competitive advantage gives customer advantage for example
if Coca Cola deliver its product better than any other competitors then
customers will choose Coca Cola over other companies. 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. Coca Cola has competitive
advantage so it is making it get bigger and bigger in terms of sales and
market share. Coca Cola reputation has also competitive advantage and it
is also pursuing environmental friendly product. Coca Cola many products
are recyclable and Coca Cola is also going for the green effect.

Conclusion
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. The data has clearly indicated that COCA COLA products are more
popular than the products of Pepsi mainly because of its TASTE, BRAND
NAME, INNOVATIVENESS, AVAILABILITY, thus it should focus on good
taste so that it can capture the major part of the market. The study also
indicated that the consumer are satisfied with the COCA COLA products
and purchase them without any specific occasion.

In today’s scenario, customer is the king because he has got various

choice around him. If you are not able to providing him the desire result he
will definitely switch over to the other provider. Therefore to survive in this
cutthroat competition, you need to be the best. Customer is no more loyal
in today’s scenario, so you need to be always on your toes