Coca-Cola
COCA-COLA
Ryan Hodownes
Southern New Hampshire University
Dr. Greg Randolph
ABSTRACT The purpose of this paper is to examine the company Coca-Cola, which is an Atlanta based beverage company, from an economic point of view. The beverage industry as a whole will be examined. Many things will be taken into consideration such as entry barriers for the firm, competitors and their goods, as well as the structure of the overall industry. Coca-Cola will be examined specifically by looking at the firm’s competitors, the firm’s advantages over these competitors, product substitutes, and the impact of supply and demand for Coca-Cola’s beverages. Also in this paper, all uses of the term “the company”, “coke”, or “the firm” will refer specifically to Coca-Cola.
INTRODUCTION The Coca-Cola Company has successfully been selling the famous beverage since 1886 making it over 125 years old. First sold out of a small pharmacy in Atlanta, Georgia it has evolved into the top supplier and market brand leader in the world beverage industry providing the product which includes over 500 brands, to over 200 countries, while employing more than 700,000 individuals. This places the firm in the Forbes top-100 biggest public companies in the world. According to the mission of the Coca-Cola, they aim to achieve three simple things, “to refresh the world, to inspire moment of optimism and happiness, and to create value and make a difference (Mission, Vision, Values).” The company has also aimed to double their profit over the next decade and will strive to achieve this goal through their vision statement containing 6 P’s. The six P’s of Coca-Cola are profit, people, portfolio, partners, planet, and productivity (Mission, Vision, Values). In regards to profit, in 2011, the company sold 26.7 billion unit cases while earning $46.5 billion in revenue. As for the people aspect, Coca-Cola recently opened new plants in Ireland, Russia, and the United States. The portfolio aspect was also
Ryan Hodownes
Southern New Hampshire University
Dr. Greg Randolph
ABSTRACT The purpose of this paper is to examine the company Coca-Cola, which is an Atlanta based beverage company, from an economic point of view. The beverage industry as a whole will be examined. Many things will be taken into consideration such as entry barriers for the firm, competitors and their goods, as well as the structure of the overall industry. Coca-Cola will be examined specifically by looking at the firm’s competitors, the firm’s advantages over these competitors, product substitutes, and the impact of supply and demand for Coca-Cola’s beverages. Also in this paper, all uses of the term “the company”, “coke”, or “the firm” will refer specifically to Coca-Cola.
INTRODUCTION The Coca-Cola Company has successfully been selling the famous beverage since 1886 making it over 125 years old. First sold out of a small pharmacy in Atlanta, Georgia it has evolved into the top supplier and market brand leader in the world beverage industry providing the product which includes over 500 brands, to over 200 countries, while employing more than 700,000 individuals. This places the firm in the Forbes top-100 biggest public companies in the world. According to the mission of the Coca-Cola, they aim to achieve three simple things, “to refresh the world, to inspire moment of optimism and happiness, and to create value and make a difference (Mission, Vision, Values).” The company has also aimed to double their profit over the next decade and will strive to achieve this goal through their vision statement containing 6 P’s. The six P’s of Coca-Cola are profit, people, portfolio, partners, planet, and productivity (Mission, Vision, Values). In regards to profit, in 2011, the company sold 26.7 billion unit cases while earning $46.5 billion in revenue. As for the people aspect, Coca-Cola recently opened new plants in Ireland, Russia, and the United States. The portfolio aspect was also
References: Steinbrinck, K. (n.d.). Save money this summer, drink water, not coke. Retrieved from http://blog.checkadvantage.com/2011/06/29/drink-water-not-coke/ Muhtar, K. (2011). 2011 year in review. Retrieved from http://www.thecoca-colacompany.com/ourcompany/ar/letters-to-shareowners.html Mission, vision, values. (n.d.). Retrieved from http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html New, C. (2011). Should coca-cola raise its prices?. Retrieved from http://www.dailyfinance.com/2011/08/17/should-coca-cola-raise-its-prices/ Esterl, M. (2010). Pepsi thirsty for a comeback. Retrieved from http://online.wsj.com/article/SB10001424052748703818204576206653259805970.html