For over 126 years, Coca Cola has been operated as world’s largest beverage company together with its subsidiary brands. The United States, as Coca Cola’s international headquarters, has one of the largest populations where Coke is the main beverage for most of the consumers. The purpose of this essay is to determine whether the environmental changes in the United States are beneficial for Coca Cola Company to operate more markets in the future. This essay will explore both the Coca Cola Company as well as the market in the United States. The tools used for this examination include a SWOT analysis of Coca Cola Company and PEST analysis of United States. In addition, we will examine Porter’s 5 forces of the beverage industry in the United States and we will conclude with a list of recommendations.
2. Company Background
The Coca Cola Company has served various kinds of drinks from 1866 until present. As expected, Coca Cola Company made $48 billion net operating revenues, $9 billion net income, and $162 billion market capitalization in 2012. These huge amounts of earnings in 2012 proving that the Coca Cola Company makes big profit successfully within a year. Besides profit that is achieved, Coca Cola Company also ranked by Interbrand as World’s Most Valuable Brand with $77.8 billion in 2012. Moreover, the company supports over 280 physical activities or nutrition education programs in more than 115 countries around the world (The Coca Cola Company, 2013).
3. Country Background
United States (US) is the world’s third largest country by size (9,826,675 square per kilometer) and by population with 50 states and the District of Columbia (316,438,601 people). The main urban areas by population are Washington, DC as the capital city of US, New York, Miami, Chicago and Los Angeles. Since the end of the World War II, US has achieved steady growth of economy, low unemployment and development in technology, which lead US become world’s most powerful nation state (North America: United States, n.d.). The reason of choosing United States because of its size, population, growth in the economy and technology that become huge opportunities and beneficial for operation of Coca Cola’s markets in the following years.
4. SWOT Analysis
SWOT analysis stands for Strength, Weakness, Opportunity and Threat analysis. This section talks about the SWOT analysis of Coca Cola generally in Table 1 and three points among Table 1 will be explained further in the following paragraphs. Firstly, Coca Cola’s strength analysis which is titled as the top three of the Best Global Brands in 2013. Secondly, it’s main weakness which is the danger in consuming soft drinks for health. Lastly, PepsiCo as Coca Cola’s major threat among other companies.
Table 1: SWOT analysis of Coca Cola
1. Top three of Best Global Brands in 2013 with USD $79,213 (Best Global Brands 2013,...