Cola Wars Case Analysis
COMPANY OVERVIEW Coca-Cola, the world’s largest producer and marketer of nonalcoholic beverages claims a 10% market share worldwide selling about 500 million servings annually. On a worldwide scale, Coca-Cola divides and segments their operations into 5 different segments:
• North America
• Africa
• Asia
• Europe, Eurasia, and Middle East
• Latin America As each segment is different, but equally important to their success, Coca-Cola’s largest driver comes from the Europe, Eurasia, and Middle East segment totaling $7,195,000,000 in net operating revenue in 2004. Trends over the years in net operating revenue can be seen in table 2 of appendix 1. The challenges faced by Coca-Cola in this situation are different than past experiences due to its international locations. The issue is not located in the home state, or even the home country. Imagine how hard it was to overcome an obstacle when it was in the same country, the same kind of an obstacle is going to be much harder to overcome due to the cultural behaviors of each specific area of the world. Coca-Cola has to do much more research to realize why events are happening the way they are. Why are consumers boycotting their product?
INDUSTRY OVERVIEW The nonalcoholic beverage industry in Europe, Eurasia, and Middle East has become highly competitive. The political environment has increased the competition between beverage manufacturers since the year 2000. The turmoil in the Middle East has fueled competition between all brands, paving way for new manufacturers of “Muslim-friendly” drinks from Mecca Cola, Qibla Cola, and Zam Zam Cola to take out MNC’s like Coca-Cola and Pepsi.
INTERNAL ANALYSIS The overall objective for Coca-Cola is to gain market with a differentiation strategy and their target market is Muslim community in the Middle-Eastern market. Coca-Cola’s product objective is to create a better brand image through product differentiation. Even though competitors products closely
• North America
• Africa
• Asia
• Europe, Eurasia, and Middle East
• Latin America As each segment is different, but equally important to their success, Coca-Cola’s largest driver comes from the Europe, Eurasia, and Middle East segment totaling $7,195,000,000 in net operating revenue in 2004. Trends over the years in net operating revenue can be seen in table 2 of appendix 1. The challenges faced by Coca-Cola in this situation are different than past experiences due to its international locations. The issue is not located in the home state, or even the home country. Imagine how hard it was to overcome an obstacle when it was in the same country, the same kind of an obstacle is going to be much harder to overcome due to the cultural behaviors of each specific area of the world. Coca-Cola has to do much more research to realize why events are happening the way they are. Why are consumers boycotting their product?
INDUSTRY OVERVIEW The nonalcoholic beverage industry in Europe, Eurasia, and Middle East has become highly competitive. The political environment has increased the competition between beverage manufacturers since the year 2000. The turmoil in the Middle East has fueled competition between all brands, paving way for new manufacturers of “Muslim-friendly” drinks from Mecca Cola, Qibla Cola, and Zam Zam Cola to take out MNC’s like Coca-Cola and Pepsi.
INTERNAL ANALYSIS The overall objective for Coca-Cola is to gain market with a differentiation strategy and their target market is Muslim community in the Middle-Eastern market. Coca-Cola’s product objective is to create a better brand image through product differentiation. Even though competitors products closely