Employing Strategy in a Competitive Environment

Employing Strategy in a Competitive Environment

Introduction

Established in 1886, Coca-Cola is the world leader in the production, marketing, and distributor of nonalcoholic beverage concentrates and syrups used to produce more than 300 beverage brands. The corporate headquarters are in Atlanta, with operations in more than 200 countries worldwide. More than 70 percent of their income comes from outside the United States, but the real reason they are a truly global company is that the products meet the various preferences of consumers around the world.

Discussion

Environmental Analysis

Political Factors

Elections at all levels

Changing the law

The entry of the state in various supranational structures

State regulation in the industry

State regulation of competition (Schermerhorn, Pp. 226, 2008)

Economic Factors

Dynamics of GDP

Inflation

The dynamics of the ruble

The dynamics of the refinancing rate of the Central Bank .

Employment Dynamics

Effective demand

Market and trade cycles

Costs of your company

Costs for energy companies

Costs for raw materials company

Expenses on communication

Higher prices of suppliers

Decrease the purchasing power of consumers (Schermerhorn, Pp. 226, 2008)

Social Factors

Changes in the underlying values

Changes in the style and standard of living

Attitude to work and leisure

Demographic changes

Religious factors

The influence of the media (Schermerhorn, Pp. 226, 2008)

Technological Factors

Trends of R & D

New patents

New products

Development of technology (Schermerhorn, Pp. 226, 2008)

Legal Factors

Advertising laws

Employment laws

Competition law

Health and safety law

Regional legislation

Taxation

Subsidy policy

Foreign trade and investment regulations (Schermerhorn, Pp. 226, 2008)

Environmental Factors

Environmental legislations

Impact of business activities on the environment

Energy consumption

Energy availability and cost

Waste disposal (Schermerhorn, Pp. 226, 2008)

Recommendations

The company should look into Price competition from other retailers

Changing the structure of the "purchase models"

Increasing price competition

The increase in end-user market, reducing market professional buyers (Schermerhorn, Pp. 226, 2008)

Strengths

1.Brand awareness

2.Wide range of products

3.Known to market

4.Good advertising support (Drucker & Maciariello, Pp. 126, 2008)

5.Regular updating of equipment

6.Product enjoys a great demand

7.Proximity to consumers

8.Competitive product

Opportunities

1.Reduction in the number of unemployed

2.Reduction of taxes

3.Market research on new techniques

4.Competitive organization (Drucker & Maciariello, Pp. 126, 2008)

5.Emergence of new partners

Cola War

As a cola war suggests, the competition is between Coke - Brand Coca-Cola and Pepsi -Cola refers to the supremacy on the world market. The term was coined by the aggressive comparative advertising from the 1970s. Both companies are also trying through exclusive contracts with pubs, supermarket chains Fast food chains or a sole distributor to achieve their product, so run a hard throat competition. During the war, Pepsi-Cola changed the color of its cans of blue, white and red to blue and sole made in the course of the "Blue Project", a Concorde blue underline. In the computer game Pepsi Invaders, which was developed for Coca-Cola, the player must shoot the attacking Pepsi spaceships (Kotler & Armstrong, 2006).

In addition, both cola companies also have an effect on American politics. So Coca-Cola and Pepsi from the Republicans traditionally support the Democrats: Richard Nixon was a longtime advocate of Pepsi, he drank it publicly in 1959 in Moscow during a legendary dispute with Khrushchev. Later he helped Jimmy Carter, for Coke to open in the Chinese market.

The Coca-Cola Company has used advertising to leverage considerations and proposals ...