Since the environment of contemporary business is dynamically changing, there are some threats and opportunities for the development of any company. We will briefly analyze the Coca-Cola Company.
Bottled water market growth: The bottled water market is on the rise due to increased concern about health. Global sales of bottled water were increased by 8.5% only in 2005. Coke’s Dasani brand became the third most popular trademark (Miriam, 26).
Expanding segment of non-carbonated drinks: The non-carbonated beverages market grows fast since people are more health conscious now. Therefore, they avoid carbonated drinks and choose non-carbonated, such as various juices, fortified and energy drinks (Mennen, 43).
Brand recognition: Coca-Cola is available in about 200 countries (Mennen, 2010). It is well recognized and well appreciated for quality. The sponsorship of NBA games, and advertising in the World Cup and the Olympic Games add to the popularity of the brand.
Acquisition’s opportunities: there are a growing number of opportunities for acquisitions, for example, Honest Tea and Apollinaris in Germany, and TJC Holdings in South Africa. Thus, the market share can be increased and new market segments entered.
Hispanic population: it embodies main consumer of various Coca-Cola products increasing in the U.S.; the buying power is also growing. A buying power of $ 1trillion was observed in 2008 (Mennen, 2010).
Emerging markets: Brazil, China, Mexico and Russia experience economy growth, thus, their citizens increased consumption of food products.
Fierce competition: the competition is getting more intense in the soft drinks market. The main threat for Coca-Cola comes from PepsiCo. There is an opinion that PepsiCo has outdone Coca-Cola in the U.S. market thanks to its innovations. PepsiCo entered the non-carbonated drinks well before Coca-Cola. The threat in the non-carbonated segment exists even in emerging markets (Yoffie, 2006).
Decrease of the carbonated beverages consumption: limited consumption of carbonated drinks in the developed world is connected with obesity and other health problems. This is one of the major threats to the development of Coca-Cola.
Safety concerns: Coca-Cola products made in different countries were accused in using dangerous components. Mexican products were proved to contain lead in bottles and in the product itself. The company got claims for selling tap water in the USA.
Slow reaction to the trends of the market: the main competitor, PepsiCo, quickly responds to all market trends, while Coca-Cola often delays its reaction. PepsiCo sales in 2005 grew bigger than those of Coca-Cola for the first time in 112 years.
Costs of materials: the costs of packaging materials and sugar are growing, so it is another potential threat to the future growth of Coca-Cola (Wael).