Coca Cola Global Analysis
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Global Trade ECO 424 Prepared by- Carl Wolfgramm Abstract: Environmental analysis of the target country: The Czech Republic, is necessary for strategic placement and expansion of business in this industry. The first task is focused on PEST analysis of the business environment in the Czech Republic paying attention to factors that concern the soft drink industry. The third task is conducting a SWOT analysis of Coca Cola in the Czech Republic with recommendations giving strategic guidelines for Coca Cola in order for the company to become a market leader in the soft drinks industry. Introduction: As the report states the soft drink beverage industry is in the maturity stage with three major players dominating and Coca Cola will become the market leader if it follows the strategic guidelines outlined in this essay and using the analyses PEST of the business environment of the Czech Republic in order understand the conditions which will affect the company's performance. An analysis of the external environment is necessary to understand different regions and the forces which determine the success of the company. The Coca Cola products are global and sold everywhere and in the Czech Republic is an established brand in the mature stage of the product life cycle. The business strategy is necessary as the soft drink industry in the Czech Republic is in the maturity stage which may mean the market is at saturation and other trends are able to grow ie the bottled water and healthy drink trend.
The competitive environment also plays an important part in the successful implementation of the strategy for Coca Cola has high competition from local and international companies. Coca Cola is also competing with a heavy beer drinking culture in the Czech Republic and as possibly the most popular beverage in the country and gaining a share of this market will boost market share of the non alcoholic beverage industry. Marketing campaigns replacing a beer product with a Coca Cola product in a typical Czech setting in a pub for example can change this perception gradually. Another approach is to categorize alcoholic beverages such as beer and or wine as alcohol giving the perception of it as associated with alcohol and therefore a drug. This perception can make people seek alternatives to beer and alcohol and incorporate an unhealthy association with alcoholic beverages. Another social factor is the tendency for Czechs to view soft drinks as unhealthy where exposure to the U.S obesity epidemic blaming soft drinks for this problem and changing this perception will be the key to dominating the Czech Market. Technical, technological and production factors The Czech Republic has a highly experienced and educated IT sector and what this means is that Coca Cola can utilize these resources in a marketing and Customer Relationship Management role to better manage customers and market share.
And in Coca Cola's case in the Czech Republic there should be more of an emphasis on this strategy to make more Czechs drink Coca Cola products. A typical example is a Kofola television advertisement using a typical Czech scene on a lake where a typically Czech scene was played out and this type of marketing is sorely lacking in the Czech market. There are still strong differences between markets opposing the belief that consumer culture is extensively homogenous. 3) Increasing sponsorship within the Czech Republic is another strategic guideline where a strong presence and loyalty can be maintained. This is especially the case within government institutions and events. This can build an association to a solid and respected force in peoples lives and improve brand loyalty. Sporting events is a good example as well as hospitals and environmental causes. 4) Increasing R&D to properly understand consumer behavior and the Czech culture will give Coca Cola an advantage over local competitors as the availability of R&D resources in the Czech Republic is abundant and the cost benefits out weigh the initial investment in the long term. 5) Using technology platforms to gain a strategic advantage especially when the Czech Republic has high concentrations of IT resources in the form human capital and infrastructure . Using social networking platforms to base marketing campaigns can be a cost effective way to gain market share and consolidate into a unique sector.
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