Key Success Factors of Coca Cola

Coca-Cola Company

Suzette Brown

Bellevue University

Coca-Cola

The Coca-Cola Company is one of the largest beverage companies in the world.  The Company headquarters is in Atlanta, Georgia and has been in existence since 1886.  Coca-Cola produces, distributes, and markets nonalcoholic beverages and syrups. As of September 16, 2015 the stock price of the company was $39.15. Coca-Cola’s revenue for 2014 was $45.998 billion; this is a decrease of 1.83% from 2013’s $46.854 billion.  Company profit was $7.098 billion in 2014 which is a 17.31% decrease from 2013’s $8.584 billion. The mission statement of Coca-Cola states:  To refresh the world in mind, body and spirit.  To inspire moments of optimism through our brands and actions.  To create value and make a difference everywhere we engage (The Coca-Cola Company, 2014).

The key success factors possessed by the company

One of Coca-Cola’s key success factors is there strong global presence. They are the biggest player in the global beverage industry generating 39.9% of the industry’s volume (Euromonitor, 2013). The Coca-Cola Company mainly competes on advertising and differentiation.  They are able to invest large sums on advertising and marketing and they have a well-recognized brand name.  Brand name is an important success factor for Coca-Cola.  Ninety percent of the world recognizes the Coke symbol.  Coca-Cola has a strong retail and distribution network globally.  The retailers receive up to 20% margins to stock Coca-Cola products.  The company has a network of company owned or controlled distribution and bottling operations.  

Part of Coca-Cola’s success is the ability to offer a wide variety of options to meet the needs of the consumer’s desires, lifestyles, and needs.

Any rivals the company has and how and why they are a threat to the company

Coca-Cola’s biggest rivalry is PepsiCo. The other competitors only hold a small portion of the market share.  PepsiCo’s well-known brands are Pepsi and Gatorade.  PepsiCo is currently trying to meet the healthier living movement of consumers by focusing on their Gatorade brand.  Coca-Cola could see a drop in sales if they don’t successfully market and sell their brands of healthier beverages.

The ‘weapons” the company has and whether they are used effectively

Coca-Cola’s largest market group is teenagers and middle aged adults.   According to the World Demographic Profile 57.4% of the world’s population lies in this demographic.  By focusing on the largest demographic in the world for customers, Coca-Cola is using an effective strategy for sustainability and growth.

Short term and long term threats the company expect to face

There is currently a movement towards an increase in healthy living worldwide.    Soft drinks have been linked to obesity and diabetes.  Coca-Cola has developed Coke Zero and Diet Coke in order to maintain its market share against consumers looking for low sugar/no sugar substitutes.