Question

Coca-Cola company

Opportunity Analysis 1. List your organization's biggest opportunities.

Threat Analysis 1. List your organization's biggest threats.

Answer 1

Coca-Cola company

Opportunity Analysis:

1. Diversification in the health and food business will improve the offerings of Coca cola to their customers. This will also ensure that they get better revenue from existing customers by cross selling their products. The supply chain which is distributing their beverages can also distribute these snacks thereby sharing the load of Supply chain costs.
2. Increase its reach in untapped countries and market can boost Coca Cola
3. With hygiene becoming a major factor in the consumption of water, Packaged drinking water has found its way into peoples mind. Coca cola has a presence in the packed drinking water segment though Kinley. Although Kinleys expansion is slow as of now, Kinley has a huge potential of expansion. Thus Coca cola as a company should focus on the expansion of Kinley as a brand and take it up to Bisleri ‘s level of trust.
4. Supply chain can be a major cost sink hole with the transportation costs always rising. Coca cola’s complete business is based on transportation and distribution. There will always be possible improvements in this area. Thus Coca cola should keep strict watch on its Supply chain and keep improving to bring the cost down.
5. In the product portfolio of Coca cola, there are several products which have not found acceptance in the market. Coca Cola needs to concentrate on the marketing of these products as well. It is understood that Coca cola has made several expenses to launch these products. Thus, the marketing and subsequent rise of sale of these products will help revenue of Coca cola.

Threat Analysis:

1. Health consciousness amongst people avoiding aerated drinks can adversely affect Coca Cola
2. Water is the only threat to Coca cola. The weakness of Coca cola was the suspected use of pesticides or vast consumption of water. However, the threat here is that water scarcity is on the rise. With the climate changing, and regions of various countries facing scarcity of water, sooner or later someone might raise fingers on beverage companies. Thus, Water sourcing is an axe which can fall anytime on the head of Coca cola. If water is limited or rationed, Coca cola can experience a major downfall in their revenue and capacity of distribution. The same can affect its arch rival Pepsi as well.
3. .Difficulty in complying with different government regulations and norms in different countries
4. companies such as Starbucks and Dunkin' Brands Group do not compete directly with Coca-Cola, these businesses do place a dent in the company’s market share. The chains offer customers healthier alternatives, unique choices, and customer loyalty rewards that are not easily matched by Coca-Cola. In addition, smaller franchises and retail chains provide patrons with private-label substitutes for traditional Coke products, which allows these businesses to deliver beverages at a lower price. Industry data suggest potential customers will continue to be pulled away from basic drink selections in favor of customizable options that carry a greater nutritional benefit.