NBC

Nigerian Bottling Company PLC

Contents

Executive Summary1

Introduction2

Discussion3

PESTLE3

Political Factors3

Economic Factors4

Social Factors5

Technological Factors5

The Five Forces Model of Porter7

Forces that Influence the Growth of the Company7

1. New Competitors7

2. Existing Competitors8

3. Competitors Offering Substitute Goods8

4. Buyer Power8

5. Power of Suppliers9

1) Strengthen the Weak Points15

2) Use Features15

3) Eliminate the Threat15

Conclusion16

Executive Summary

PESTLE analysis, the SWOT analysis and the Porter's five forces are one of the most important things that a business needs to look into for its growth and proper functioning. This paper will look into this analysis for the Nigerian Bottling Company. The company is responsible for the manufacture and sale of over 33 different brands of Coca-Cola. The company sells about 1.8 billion bottles each year, making it the second largest of the market in Africa. The company is a part of the Coca-Cola Hellenic Bottling (Coca-Cola Hellenic), one of the bottlers of The Coca-Cola Company producing bottles for Coca Cola worldwide. PESTLE analysis will look into the political, economic, social, technological, legal and environmental aspects of the NBC. The SWOT analysis will include the strengths, weaknesses, opportunities and threats that the Nigerian Bottling Company is facing. Lastly, the paper will throw light on the Porter's five forces and their effect on the company. Nigerian Bottling Company PLC

Introduction

Nigerian Bottling Company Plc is one of the few multinational organizations that had its origin in Nigeria. The company is responsible for the manufacture and sale of over 33 different brands of Coca-Cola. The Nigerian Bottling Company Plc (NBC) was incorporated in November 1951. The company was incorporated as a subsidiary of the AG Leventis Group. The Nigerian Bottling Company had the franchise to bottle and sell the products of Coca Cola in Nigeria. Production of the bottling process began in 1953 at a bottling plant in Ebute-Metta, Lagos. Since production started, Nigerian Bottling Company Plc has remained the largest bottler of non-alcoholic beverages in the country in terms of sales volume. The company sells about 1.8 billion bottles each year, making it the second largest of the market in Africa. The company is a part of the Coca-Cola Hellenic Bottling (Coca-Cola Hellenic), one of the bottlers of The Coca-Cola Company producing bottles for Coca Cola worldwide. Coca-Cola Hellenic operates in 28 countries (www.securities.com). The company serves more than 560 million consumers. Over 6000 employees drive the Nigerian Bottling Company. With 13 high performance bottling plants, more than 80 branches and over 200,000 retail outlets across the country, the Nigerian Bottling Company offers some of the most common, as well as, best known brands including Coca-Cola, Five Alive, Fanta, Eva Water Schweppes, and Sprite (www.nbcltdcareers.com).

Discussion

PESTLE

PEST analysis identifies the overall environmental factors that will affect companies. This analysis is done before performing the SWOT analysis as part of strategic planning. The term comes from the acronym for "Political, Economic, Social and Technological, Legal and Environmental. It is a useful strategic tool for understanding market cycles, the position of a company, or operational management (Schermerhorn, Pp. 226, 2008).

The factors are classified into four groups:

Politico - Legal: antitrust, environmental protection laws, ...