About Coca Cola Company
How it works
Coca Cola Company is a US publicly traded company. It is a manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. The company’s most famous product is Coca Cola which was invented in 1886 by a pharmacist in Atlanta. The company is headquartered in Atlanta, but incorporated in Delaware. They only produce syrup concentrate, which is then sold to various bottlers in the world who have specific territories. The Coca Cola Company owns its anchor bottler in North America, Coca Cola Refreshments.
Coca Cola Company is globally represented in over 200 countries with their wide range of products. Some examples are coca cola, diet coke, coca cola zero, ciel, dasani, fanta, gold peak, powerade, minute maid, smartwater, vitaminwater, and many more. Coca cola company is very well known at all ages; from youth, teens, young adults, all the way to adults and seniors. Everyone knows the company. One of the takeaways for me why I picked Coca Cola Company for this paper was that they are a local company, headquartered 15 minutes away from Life University.
How it works
Within the business Coca Cola company the two brands coca-cola and diet coke could be considered substitutes. If someone would supplement them if one of the two is not available without decreasing satisfaction they are considered substitutes. Within the beverage industry Coke and Pepsi are a good example of substitutes. To most people they are almost the same product. If one of them is not available then customers are most likely to take the other one. For example, someone would like to order a Coke in a restaurant but they don’t offer Coke just Pepsi. They then would order a Pepsi without decreasing in satisfaction. Also, if the price of Coke goes up in price by a big percentage, most people are going to stop purchasing the product and supplement it with Pepsi instead, which will be offered at a much lower price. This scenario works also vice versa. If Pepsi goes up in price by a big percentage, most people are going to stop purchasing the product and supplement it with Coke which is offered at a much lower price.
Within the food and beverage industry fast food, snacks, natural drinks, alcoholic drinks and others are considered complements for Coca Cola Company. For example, if the price of fast food, complement to Coke, increases, then the quantity of coke demanded will be decreased. Less people are going to consume fast food because it got more expensive and therefore less coke will be purchased in relation. If someone goes to the store and purchases a bottle of Coca Cola for its great taste and every times they do so they will also buy a bottle of dasani water (brand of Coca Cola company) to quench their thirst. This would be an example of complements within the Coca Cola Company. It the price of Coca Cola goes up, the quantity of dasani water will go down.
In 2017 Coca Cola Company decided to use a new business strategy which was to focus on choice, convenience and the consumer. They started giving people more of the drinks they want, including low and no-sugar drinks with a wide range of categories and flavors. Basically, building a ‘consumer-centric brand’ which requires a shift from what the company wants to sell to what consumers want to buy. They also stated to stay ahead of trends and keep evolving tastes. Consumers are more and more looking for natural drinks, if with less sugar or sometimes with more benefits like hydration and nutrition. Also, expanding the availability of smaller and more convenient packages, and easy to find calorie information should boost their sales. Putting the consumer first starts with rethinking some of the company’s beverage recipes to reduce sugar, and investing in order to introduce the next generation of zero-calorie sweeteners. The principle would be, giving people the low and no-sugar drinks they want without having to give up the great tastes they know and love. Coca cola company is also investing more in its marketing to build awareness of its low- and no-sugar drinks.
As we learned in class, price elasticity measures the correlation between the variation in demand and the variation in price. If small change in price results in a large change in the sales volume, the market is elastic. The demand for soda is very elastic due to the big competition and therefore Coca Cola Company’s price elasticity is elastic. If Coca Cola becomes more expensive, consumers will prefer to buy Pepsi, and therefore the demand for coca cola will collapse. On the other hand, Coca Cola Company is very much aware of the demand elasticity of its products and could actually cut the price of its drink, and decrease the demand for Pepsi.
Coca Cola Company promotes economic development through diverse suppliers. Diversifiers include companies that are owned by minorities, women, disabled veterans, and lgbtqa. They may also include small businesses which are promoted by the SBA – Small Business Administration, who provide assistance to small businesses in order to start and grow them. Supplier diversity also matters because it is a profitable business strategy. It drives innovation, leads to healthy competition between vendors, and opens new supply channels for Coca Cola Company. They are empowering companies that represent the consumer base of tomorrow. As we know, Coca Cola Company has diverse customers when looking at age, race, religion, gender, and ethnicity.
Coca Cola Company differentiates between direct suppliers and indirect suppliers. Direct suppliers include ingredient and packaging suppliers and indirect suppliers include categories such as IT, production equipment, spare parts, maintenance service, logistic providers, utilities, real estate, facilities management, professional and other consultancy services, personnel and temporary labour. Direct and indirect suppliers add up to about 35,000 different suppliers.
External factors such as shipment and delivery accuracy, social and environmental responsibilities, ethics, legalities, natural disasters such as wildfires, tornadoes or earthquakes, and others that could impact the business process in any way.