TOWS Analysis

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Coca- Cola Company is the world’s leading manufacturer, marketer  and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted

caramel-colored syrup in a three legged brass kettle in his  backyard. He first “distributed” the  product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was  proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca Coca-Cola -Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca- Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduces its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company.

The Coca-Cola Company is the world's largest beverage company and is the leading producer and marketer of soft drinks. The Company markets four of the world's top five soft drinks brands: Coca-Cola, Diet Coke, Fanta and Sprite. The success of The Coca-Cola Company revolves around five main factors: 1. A unique and recognized brand - Coca-Cola is among the most recognized trade marks around the globe 2. Quality - consistently offering consumers products of the highest quality 3. Marketing - delivering creative and innovative marketing programmes worldwide 4. Global availability - Coca-Cola products are bottled and distributed worldwide 5. Ongoing innovation - continually providing consumers with new product offerings e.g. Diet Coke (1982), Coca-Cola Vanilla (2002).

TOWS Analysis TOWS Analysis is an effective way of combining a) internal strengths with external opportunities and threats, and b) internal weaknesses with external opportunities and threats to develop a strategy. Strength

Weaknesses

Opportunities

SO Strategies

WO Strategies

Threats

ST Strategies

WT Strategies

To carry out a TOWS Analysis, consider the following combinations: 

Strengths/Opportunities (SO) 1. Growing market for bottle water market, Coca Cola can be a leader in this market by extending its product line and campaign for healthy drink in the industry. 2. Coca Cola has the largest sponsorship in games such as football, Olympic etc, by launching energy of their own brand, it could be the fastest selling product if use some of the famous stars in the game to advertise the product. 3. Can renewed focus on ageing and affluent consumers globally. 4. Diversified in snack market 5.

Providing health consciousness brand

6. investment in global market 7.

Strong diversification

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Strength/Threats (ST) 1. A number of people have limited disposable income; the company can still take advantage through their economy of scale by reducing the price of their product at the current economic climate. 2. Do research and know what the consumers want by this they will be able to extend their product line to include sugar free product and by this they will be able to attract new customers. 3. Threat of currency devaluations 4. New management team-brand consistency. 5.

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Government policies

Weaknesses/Opportunities (WO) 1. With their experience staff they should be able to make an instead market decision explore the new market. 2. Failing to conduct further market research into new market can give an advantage to competitors by extend to the new market 3. Training to unskilled labor 4. Job securities to fear employees 5. improve negative publicity

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Weaknesses/Threats (WT) 1. The company slow in making decision can cost them in terms of their market if the key competitors take the lead in providing what the customers want it will be difficult for Coca Cola to win back the customers. 2. If for instance the Coca Cola sugar level exceed the requirement of the health authorities this could lead to fall in sales hence the company will lose market share to the Pepsi. 3. New infrastructure for the health related drinks 4. Improve performance in certain part of America

Strength 1. Leading brand value and a strong brand portfolio 2. Large investments in brand promotions 3. Sells its products in more than 200 countries 4. Large Scale of Operations 5. Leading Market Position 6. Strong cash flow from operations

Opportunities

SO 1. Growing market for bottle water market (O6 S6) 1. Targeting the ageing customers and the young 2. Coca Cola has the largest 2. Expansion sponsorship in games such as football, Olympic etc, by 3. Booming Global functional drink  market e.g. Energy drinks launching energy of their own 4. Intense competition brand, it could be the fastest selling product if use some of  5. Catering to Health Consciousness of  People the famous stars in the game to advertise the product. (O4 S2) 6. Bottled water growth 3. Can renewed focus on ageing and affluent consumers globally.(O1 S3) 4. Diversified in snack market (02 S5) 5. Providing health consciousness brand (05 S1) 6. investment in global market Threats ST 1. A number of people have limited disposable income; the 1. The threat of substitutes company can still take 2. Economic Climate 3. Health and wellness concerns advantage through their 4. Intense competition (Pepsi, etc) economy of scale by reducing the price of their product at the 5. Commodity prices growth 6. Image perception in certain parts of  current economic climate. 2. Do research and know what the world. the consumers want by this 7. Overdependence on Bottling partners they will be able to extend their product line to include sugar free product and by this they will be able to attract new customers.

Weaknesses 1. Entire infrastructure needs a face-lift. 2. Financial market volatility 3. Negative publicity 4. Sluggish performance

WO 1. With their experience staff  they should be able to explore the new market. 2. Failing to conduct further market research into new market can give an advantage to competitors by extend to the new market 3. Training to unskilled labor 4. Job securities to fear employees 5. Improve negative publicity

WT 1. The company slow in making decision can cost them in terms of their market if the key competitors take the lead in providing what the customers want. 2. If for instance the Coca Cola sugar level exceed the requirement of the health authorities this could lead to fall in sales 3. New infrastructure for the health related drinks.

Internal and External Environment of Coca-Cola Internal Business Environment the internal business environment and its influence is that which is to some extent within the  business’s control. The main attributes in the internal environment include efficiency in the production process, through management skills and effective communication channels. To effectively control and monitor the internal business environment, Coke must conduct continual appraisals of the business’s operations and readily act upon a ny factors, which cause inefficiencies in any phase of the production and consumer process. The internal environment of  a corporation includes resources, capabilities and activities. Resources at Coca-Cola are abundant, especially intangible resources such as brand recognition, trade secrets (the recipe of  Coca-Cola Classic is known by only a few people) and culture. Though there is fierce competition between Pepsi-Co and Coca-Cola, Coca-Cola has always been the leader in the soda market due to their strengths in these areas. In conducting a VRINE model (value, rarity, inimitability, non substitutability, and exploitability), one can see that Coca-Cola has an advantage over their competitors in many areas. Inimitability is a major contributor to CocaCola’s success, due to the fact that their produ ct is well-loved and cannot be imitated exactly.

External Business Environment The External business environment and its influences are usually powerful forces that can affect a whole industry and, in fact, a whole economy. Changes in the external environment will create opportunities or threats in the market place Coca cola must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of Coca Cola’s products on the market and the reception they receive from the consumers

the competition between Pepsi-Co and Coca-Cola as an illustration for exploring the external environment. The battle between these companies is long-standing, and though they are neck to neck in profits, it is more about “winning the hearts and minds” of the consumers. The textbook  defines an industry as a “firm or groups that produce or sell the same or similar products to the same market.” This is certainly the case for Coca-Cola and Pepsi, who are competing in the soft drink market. These two companies could even be defined as a duopoly, where only two or a few large firms dominate the industry. In broader terms, Coca-Cola is competing with any company who serves beverages, including Starbucks, Lipton, all of the major beer companies, bottled water companies, when considering the five forces of industry structure, Coca-Cola has an enviably powerful position. The threat of new entrants to the soda industry is very low, since Coca-Cola and Pepsi-Co are so large and profitable that it would be nearly impossible to compete with either of them. Coca-Cola does not suffer from the power of the supplier-rather, it imposes a high level of power to the bottling companies that must sign contracts with them to bottle their products.

Case study o

Brand Name: Coca-Cola

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Drink Type: Soft Drink 

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Coca-Cola: Coca-Cola is the most popular and biggest-selling soft drink in history, as well

as the best-known product in the world. o

Available in the following flavors: Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime,

Cola Lime, Cola Orange and Cola Raspberry.

Created in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in the United States. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually every part of the world. From amongst the million companies across the globe we have selected this business for its strong business practices. The company, which we have identified for this project is Coca Cola. The main reason for selecting this company is that Coca-Cola has been ranked as a most popular soft drink in today world. Coca-Cola is a type of carbonated soft drink sold in stores, restaurants in more than 200 countries. It is produced by The Coca-Cola Company which is often referred to as simply Coca-Cola or Coke. Coke is one of the world’s most recognizable and widely sold commercial brands

 Mission, Vision & Values The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottling partners.

Mission To Refresh the World... in body, mind, and spirit. To Inspire Moments of Optimism... through our brands and our actions. To Create Value and Make a Difference... everywhere we engage.

Vision

Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. 

People: Be a great place to work where people are inspired to be the best they can be.

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Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and

satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create

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mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support

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sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall

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responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

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Values

Our values serve as a compass for our actions and describe how we behave in the world. 

Leadership: The courage to shape a better future

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Collaboration: Leverage collective genius

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Integrity: Be real

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Accountability: If it is to be, it's up to me

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Passion: Committed in heart and mind

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Diversity: As inclusive as our brands

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Quality: What we do, we do well

Suggested Strategies for the Coca-Cola Company o

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Shall offer low cost small packaging so that with the regression in economy people can still buy their drinks. As for Kinley, the importance of pure and clean water shall be introduced in the market through strong advertising. Diet coke has been identified as the dog segment so its retrenchment should be considered or remodel it. Among youth indulgence in sports is becoming popular day by day so energy and sports drinks shall be introduced to get a strong market holding for the company. Like its biggest competitor Pepsi-co coca-cola company can also diversify and launch snacks.