In: Operations Management
explain why Coca-Cola is more profitable than the industry average
Coca Cola is more profitable than industry average because of
the following reasons.
barriers to entry into beverage industry is relatively high because
of its large advertising budget. the company is largest seller of
non alcoholic beverages in the world. Coca-Cola has a concrete and
rigid business model which is evident in its dividend history. the
beverage industry is expected to increase by dollar 300 million
between 2015 and 2020 and it is expected that the Coca-Cola holds
major portion of market share. coca Cola is has been serving its
customer for the past 130 years and almost 20000 Coca Cola beverage
is being consumed every second. Product is sold in more than 200
countries, more than 2 million Coca Cola product is being served
daily. Coca-Cola has 20 brands with over 1 million per year in
sales under its umbrella, this product portfolio has created
significant diversification which in turn protects the company from
any downturn in interest of any single product or brand.