assignm Part 2

Overview of The Coca-Cola Company and its Position Within the Industry

This essay is the first part of a series of reports. It aims to give an investor (potential or otherwise) the necessary details that would allow them to get an outline of the company and its situation within the industry. This information will prove pertinent before analyzing the company's financial potential described in the proceeding report. This is in line with the prime objective of offering an investment decision proposal based on a listed company's financial position.

In 1886, a pharmacist for Columbus, Georgia, innovated the drink Coca-Cola. He initially sold the drink at his pharmacy before selling interest in the company to Asa Griggs Candler. Asa Candler acquired sole rights to the Coca-Cola formula, and within a year, he had raised sales substantially. His brother and a new partner, Frank Robinson, joined him to create the Coca-Cola Company. In 1919, the company initialized its IPO on the NSYE for $40 each share. As of 2016, the company's yearly report displays that shares have gone up, making its market capitalization approximately $180 billion, and it had had fifty-three successive dividend rises (In-house).

The Coca-Cola Company is the most lucrative non-alcoholic beverage company on the globe. Its prime competitor is Pepsi Co, and it is no surprise that the two giants have had the most control of the non-alcoholic beverage industry in several places for a long time. Pepsi Co provides a broader assortment of soft drink beverages than the Coca-Cola Company; moreover, it also provides a variety of ready to consume packed snacks, unlike the market leader who only provides soft drinks. Both companies have been involved in ambush marketing to get ahead on brand image, and the hostile marketing often generated a stiff competitive environment in the market. Red Bull is the most popular and biggest energy drink brand in the world. The company has generated a strong brand image by utilizing distinctive brand mascots and advertisements, making it a worthy adversary to the Coca-Cola Company (Ciafone).

The company provides high-quality drinks, providing a broad variety of the most refreshing choices, each generating a positive experience for the consumer. As opposed to other brands, the Coca-Cola products prompt happiness, stimulating a positive difference in consumer lives, and the brand is extremely concentrated on the customers' requirements.

The Covid-19 pandemic has prompted enormous changes in shopping conduct, forcing the Coca-Cola Company to generate fresh opportunities ranging from brand launches and consumer campaigns. The company is set to cut back on brands that are not doing as well as the others and is remaining consumer-centric and trying to comprehend how the market is changing regarding the crisis.

The company is confronting competitor risk generated by powerful forces of competitive rivalry, the power of the consumer and the menace of substitutes. Stiff competition in the industry threatens the company's varied market sections. It is fairly easy for a customer to switch to another brand making their bargaining power fairly strong. Consumers seem to prefer alternatives to the brand since they are relatively cheaper.

The company has adopted a wide differential strategy, combining strong market capabilities, powerful brand image, high-quality drink, powerful worldwide presence and brand loyalty. Powerful consumer initiatives with a worldwide reach and capitalizing on the extensive promotional integration will improve the company's brand visibility and general competitive advantage.

The company plans to introduce a new flavor to its sparkling water brand, an area of new interest. The company has been around for a while, and even with changing times and more aggressive competitors, the future looks prospective. With this overview of the company, the successive report will contain an analysis of the company's financial performance (Journals).

References

Ciafone, Amanda. Counter-Cola: A Multinational History of the Global Corporation. Univ of California Press, 2019.

In-house. Directory of Corporate Counsel, 2021 Edition. Wolters Kluwer, 2020.

Journals, Simple. 2021-2025 Monthly Planner: 60 Monthly Calendars with US Holidays, To-Do Lists, Goals, Notes and Reminders : Five Year Calendar January 1, 2021 - December 31, 2025 : Vintage Drink Coca-Cola Advertising Art Print. Independently Published, 2020.