Strategic Plan Part 3

SWOT-Analysis For The New Division in Coca-Cola Company Class School

SWOT-Analysis Table for the New Product

	Strength	Weakness	Opportunities	Threats	Trends
Legal and regulatory	Crucial in export controls	Weak coordination within governments	Law enforcement personnel	Governmental laws	High competition
Global	Distribution network	Global competitors	diversification	Water	High competition
economic	Relatively cheaper	Domestic competition	Supply chain improvement	Indirect competitors	High competition
technological	New technology	Unavailable funds	Machine operators	Low adaptability	Heating up competition
innovation	New skills will not be necessary	Water management	Point of sale	Low innovation	New flavours
Social	sports sponsorship		Poor information system	Pressure to reduce sugar	-
environmental	Bottled in safe cans	Absence of health beverages	Introduction of health beverages	Pollution	sustainability
Competitive analysis	Distribution network	Domestic competitors	Room for innovation	External competition	High competition
strategies	Fantastic marketing strategies	Low distribution network	Improved communication channels	Competition	fantastic
structures	good	Not sufficient	Improvement of the structures		High competition

Environmental and Supply Chain Analysis of the New Division

Introduction

Coca-Cola is the world’s leading beverage company. In fact, the company is spreading smiles and opening happiness all across the world due to its intriguing range of products. It produces a range of more than 500 sparkling and still brands and more than 3800 beverage products. Consumers enjoy More than 1.9 billion servings of the Coca-cola Company in more than 200 countries. Introducing a new division that deals with products that will favor people with chronic and other diseases will be a great marketing strategy to the company and also for the product itself. An example of this product is an energy drink that has little or no sugar. This paper will, therefore, analyze the internal and external environmental analysis, and a supply chain analysis for the proposed new division.

Economic, Legal and Regulatory Forces and Trends

The introduction of new companies in the energy drink industry poses a big threat to the economy in the new production unit. The new companies create an intense competition in the market. Also, there emerge other forces from substitute products such as coffee. Coffee is a more affordable substitute for energy drinks. Consumers would choose coffee over the new proposed energy drink. It is difficult to regulate the consumers’ preferences: whether they will choose to consume the substitute products to the energy drinks. Also, the government may not approve the introduction of the new production unit due to the lack of legal framework for this new production unit.

Adaptation to Change

It is mandatory for every company to adapt to any forms of change that may arise. For Coca-cola, it reinvents the company and changes the manner in which the company operates, is structured and also develops an internal and external network (Forbes, 2013). The major priority of the company is replacing the outdated system with a modernized platform all over the markets worldwide, thus creating a strong view of metrics and streamlined processes.

Supply Chain of the New Division and the Existing Business

It is important to develop a supply chain for the new division to know how long it will take before the product gets into the market. From the processing unit, the product will go through the manufacturers then to the wholesalers and later on to the retailers who sell it to the consumers directly. The product will be delivered directly to the customers like the others products in Coca-Cola. There should also be a good communication network between the distributors, wholesalers, retailers and also the consumers. Mobile coupons can be used as a blue-light for promoting the sales of the new product. Coca-Cola Enterprises (CCE) is the world’s biggest marketers, producers, and distributors of the Coca-Cola Company’s products. It buys concentrates from Coca-Cola and flavours it to various beverages that are most common in Great Britain, Belgium, France, Netherlands, Norway, Sweden and Luxembourg (CSC, 2015). Since Coca-Cola has a strong supply chain all across the world, there will be less or no difficulties in marketing this product across the supply chain.

Issues and/or Opportunities in the Company

Coca-Cola faces four major global challenges/issues. One major issue is the increased competition from other emerging markets i.e. Pepsi. Similarly, despite having a wide range of products, the company must go on developing and innovating in accordance to health and wellness angles. Another major issue is that the company has to push other drink categories besides carbonates due to the pressure to reduce sugar levels. Lastly, the company must develop a low-calorie cola performance because of the obesity concerns (Food and Beverage, 2015). Despite the challenges, Coca-Cola Workforce Development and Training offers opportunities for Brazilian youths. Coca-Cola Brazil offers training in corporate social and environmental management and acts as a reference for shared importance across the company (FSG, 2016).

Hypothesis and Research Questions

Basing on the various issues discussed above, I came up with hypothesis and research questions for each issue in the table below.

	Hypothesis	Research Question
1	Emerging markets will increase competition	Will emerging markets increase competition?
2	The company’s development and innovation will help to improve the health and wellness angles.	Will the company’s development and innovation improve the health and wellness angles?
3	The company should push other drink categories besides carbonates reduce sugar levels.	Can the company reduce sugar levels in carbonates?
4	Developing a low-calorie cola performance will reduce the obesity concerns.	Will developing a low-calorie performance reduce the obesity concerns?

Circumstances Surrounding the Issues

One of the issues is the emerging market performance. It is brought about by the increasing competition with global competitors. This is an economic circumstance that is useful in developing greater markets to beat the competition. The second issue comes in due to the social circumstance, health, and wellness within the soft drinks company. It is important for the development and innovation of new health and wellness products to meet the people’s requirements. It is similar to the third issue that is concerned with obesity matters. Finally, all the issues put together will bring in useful considerations before the new product is introduced.

Conclusion

Finally, the introduction of the new unit must take into consideration the economic, legal and regulatory trends in the market system. The SWOT-analysis will enable the company to view its strength, weaknesses, possible opportunities and the threats it may face. When the above is considered, the new unit will have a great impact on the Coca-Cola Company.

References

CSC. (2015). CSC. Retrieved from Coca-Cola Supply Chain Management Story: http://www.csc.com/application_services/success_stories/78846-coca_cola_supply_chain_management_success_story

Food and Beverage. (2015, February 10). Four Big Challenges for Coca-Cola. Retrieved from Food and Beverage: https://foodmag.com.au/four-big-challenges-for-coca-cola/

FSG. (2016). How Coca-Cola Workforce Development and Training offers Opportunities for Brazilian youths. Retrieved from FSG: http://fsg.org/projects/how-coca-cola%E2%80%99s-workforce-development-and-training-offers-opportunity-brazilian-youth

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