Coca Cola Case Analysis

The Coca-Cola Company is the largest non-alcoholic beverage company in the world who owns, sells and distributes more than 600 different non-alcoholic beverages in 200 countries and more. “The amount of product Coca-Cola sells equates to 1.9 billion or 3.2% of the total amount of non-alcoholic beverages served worldwide” (Jurevicius, 2017). Additionally, they have a large/dominant market share, enormous brand recognition and a huge advantage in the number of consumers they can reach. Not to mention the Coca-Cola Company also owns other reputable brands such as Sprite, Fanta, Minute Maid and even Powerade to name a few that combine to earn the company, approximately, an additional $1 billion dollars annually. Because Coca-Cola are a huge presence in this industry, the company has the ability to beat out its competitors by underpricing some of its items and can exercise market power over its suppliers. Like Coca-Cola, Snapple has a strong foothold in their diverse brands they offer as well.

Some of the major weaknesses for Coca-Cola are; due to their dominance in the market share, it gives them very limited advantages over their competitors. Additionally, their overall heavy reliance on carbonated beverages, lack of diversification and the negative publicity they receive on the products all form weaknesses for Coca-Cola as a company. One of the obvious weaknesses for Snapple is the strong level of competition they are up against with globally established brands such as Coca-Cola and Pepsi. The fact that they have a limited share of many brands makes it even more difficult for the parent company to make decisions as well. Kraft’s lack of momentum as a newly formed entity and has caused a drop-in sale of 9% compared to last year. Profits slipped 4% to $0.44 a share. Without a new corporate vision and or sharper focus U.S. dollar will continue to take a toll on multinational