Weaknesses and strengths of competitors

Table of Contents

INTRODUCTION.. 2

IMPORTANCE OF COMPETITOR ANALYSIS. 4

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COMPANY BACKGROUND.. 5

COCA-COLA COMPETITOR ANALYSIS. 5

Major competitors of Coca Cola Company: 5

Pepsico. 5

Dr. Pepper Snapple. 5

Red Bull 5

Nestle. 5

Parle. 5

COCA-COLA MARKET ANALYSIS. 7

TREDS IN COCA-COLA.. 8

A growing middle class. 8

Mass urbanization. 8

Economic rebalancing. 8

The new generation. 8

Rising prices. 9

New consumer. 9

MISSION STATEMENT: 9

VISION STATEMENT: 10

CHALLENGES. 10

RECOMMENDATION.. 11

CONCLUSION.. 12

REFERENCES. 14

INTRODUCTION

The world marketing practices keep changing for both the domestic and international markets.The majority of the firms in Malaysia are seen moving from local markets and expanding their business activities to the global marketplace. As the firms move from their comfort zones to the global markets, the firm has to employ certain services and techniques such as the internet that would ensure that they survive in the international markets. For instance, the commercialization of modern business techniques is substantially essential for thriving in the global markets. Majority of the business that operates and benefits in the international and domestic markets through the manipulation of the worldwide monopoly and the reduction of the competition. Through the barrier to entry, the majority of the business entering both the local and the international markets. For the companies to enjoy further benefits, the firm has to go beyond the global markets. The internationalization of the markets is quite complicated as the firm must work towards the maximization of the profits and the reduction of the operational costs and minimizing the cost of internationalization. The firm must also consider differential countries’ cultural background, political aspects, and thecountry’s factors that enable the businesses to thrive.

The competitive analysis is a description of business operations and how the operation affects competition. The objective of the competitive study is to evaluate the weaknesses and strengths of the competitors within a specific market place, make procedures of actions that will yield distinct benefits. Besides, a competitive study removes the barriers that can be laid to harbor new entry of markets, and any disadvantages that can be assessed within a product development cycle.

The commencing procedure in a competitor evaluation is to observe and assess the potential and current competition. Referencing from the “Market Strategies” section, there are two distinct means that one can use to identify which firm is a competitor. The initial step is to look at the market from which the consumers’ views and arranged to move every single customer by the level to which they contend for the buyer’s dollar. The other strategy is to arrange all the business rivals in accordance to their competitive ways in the essence of grasping what motivates them.

Once a firm has arranged the competitors, it can commence to evaluate their strategies and search into most vulnerable areas. This procedure can be efficiently carried out through a thorough analysis of one’s competitors’ strengths and weaknesses. These weaknesses and strengths are often sourced from the absence and presence of crucial skills and assets that are recommendable to compete in a market scenario.

From this theory, the growth and development of a firm within a market ground are parallel related to the possession of critical skills and assets. Thus, an evaluation of successful performers should reveal the justifications behind their success records. This evaluation and a close look at unsuccessful firms and the rationale behind their unsuccessful history should outlay an excellent concept of just which crucial skills and assets are needed to be successful in a specific firm and market segment.

As an example, in the personal-computer operating-system software market, Microsoft operates properly with Windows and DOS. Microsoft has established its market prominence in this sector since it conducts superior research and marketing. Besides, this firm has strategic partnerships with a large number of hardware sellers who produce personalized computers. This has made it possible for Windows and DOS to have a conducive operating environment that manufactures personal computers, thus the justification of the increased number of Windows computers in contemporary society.

This firm’s key competitors are IBM and Apple, who have to compete for operating systems with a vast vending market to finance their activities. However, their main threat, which acts as a weakness, is that Microsoft has dramatically exploited the computer market. The latter competitor OS for its line of computers is limited for personal computers even though the OS is superior in various ways to Windows and DOS. Thus, its product does not run in many prominent firms who opt to choose the DOS and Windows. This goes to the extent that the OS/2 system suffers the same problem in IBM computer products. While IBM’s and Apple’s OS can run on all personalized computers, the average number of programs that are produced in their OS is minimal. Thus, this is the specific type of critical evaluation that needs to be carried out when analyzing a firm.

While progressing in the competitors’ analysis and evaluation, one will also need to create a marketing approach that will generate a skill or an asset which the competitors are not aware of. This will provide the analyst firm with a specific and distinct competitive advantage. The fact that competitive benefits are brought along from crucial skills and assets, one is recommended to sit down and analyze a competitive strength grid. A competitive strength grid is a scale that lists all critical competitors together with their strategic groups sourced from their applicable skills and assets on how their organizations fit on this scale.

Notably, to align this specific genre of the competitive grid, a list of crucial skills and critical assets need to be drawn and jotted down in a piece of paper. Along the top part of the sheet, one should separate the strengths and weaknesses wherein each category one should place all their competitors’ strengths and weaknesses. In each category, one should place all the competitors that have similar weaknesses together under the weakness side, and the same action should be done for the strength column. After finalizing the activity, one can assess and evaluate the position that his or her organization stands concerning other competitive companies in the industrial sector.

IMPORTANCE OF COMPETITOR ANALYSIS

The majority of the firms end up researching and analyzing their growth plan and marketing strategies from an internal approach.

  • They apply business jargon to market their services and products, mostly via advertisements.
  • They describe the excellent characteristics of their goods or services.
  • They do not respect the presence of language barriers in the marketing field.
  • They have deep thought that customers are buying their products through the description of those products via online platforms.

Thus, assessing and evaluating one’s competition plays a significant task in shaping one’s firms marketing strategies. This is because one can determine the weaknesses and strengths present in the markets. Besides, it offers to one’s firm a crucial benefit from contemporary and traditional competition. While evaluating this competition game, one can exploit any shortcomings that belong to the set. However, it becomes hectic to compete from a new game, especially if one fails to recognize and understand a more extensive competitive space rather than the traditional brand’s perspective.

COMPANY BACKGROUND

COCA-COLA COMPETITOR ANALYSIS

Major competitors of this firm:

Parle

Nestle

Red Bull

Dr. Pepper Snapple

Pepsi

  1. Pepsi – Pepsi is the critical market rival for the Coca-Cola Company. Its strengths were sourced from a merger that was formed between the company and Frito lay in 1965. Since then, Pepsi’s brand has grown enormously, and it has accrued to a revenue of more than 20 billion USD since 2017. The United States of America is the largest consumer of Pepsi products that accumulate to about 63.2 billion dollars revenue and more than 28 billion dollars in profits from the year 2017. These two firms compete across various categories including energy drinks, sod beverages, healthy and energy drinks, as well as bottled juices and water. Nevertheless, Pepsi is the closest rival of the Coca-Cola firm, and their competition has been termed as Cola wars.
  2. Red Bull – Red Bull Company, despite its product portfolio, is a crucial competitor of Coca-Cola. This company majors its sales in energy drinks products that are famous in most of the nations. Specifically, its international markets are ever-increasing, and currently, it sells its products to over 171 countries. As of the year 2017, this firm made a sale of more than 6 billion cans, which are evaluated to a close figure of 6.3 billion euros. Its products are booming to new markets such as India, Netherlands, UK, Turkey, and Northern Europe states. This selling strategy has laid an excellent financial figure for the revenue, thus termed as the closest rival of the Coca-Cola Company for the energy drinks by Coca Cola.
  3. Dr. Pepper Snapple –  This company has a portfolio of more than 40 refreshing products and brands.   These products and brands include teas, carbonated soft drinks, mixers, juices, and other beverages. The brand is a significant competitor for Coca-Cola as its revenue as of 2017 ranged 6.2 billion dollars. 90% of the revenue was sourced from US markets, thus a significant improvement as from 2016, where only 70% of customers from the US consumed the product.
  4. Nestle – The fact this firm is not a direct competitor for the Coca-Cola Company, it still competes with the firm with products such as bottled waters. Its Poland Spring and Nestle Pure life bottled water brands are significant and famous competitors of Dasani, a Coca-Cola bottled water.
  5. Parle – This firm is an Indian Organization that rivals Coca-Cola across various juices and bottled water. Parle’s Bailey and Frooty bottled water are crucial competitors of Coca-Cola’s minute maid and other juice and  products in the Indian market

 

COCA-COLA MARKET ANALYSIS

KUALA LUMPUR (August 25): Coca-Cola Bottlers (Malaysia) Sdn Bhd has a strategy of buying a 10-acre land in the region to grow its production over Malaysian grounds.

In a news word currently, the soft drink seller and manufacture made it clear that the expansion plan would also accommodate further warehouses. Even though there are other warehouses such as Nilai and Negeri warehouses, the land would serve as an extension. According to the firm, its Nilai warehouse plant has the role of producing and storing coke brands for Malaysia, Brunei markets, and Singapore markets, as well as other Asian markets.The expansion, said Lusk, will also create more job and business opportunities for the local economy, as well as development.Coca-Cola entered the Malaysian market in 1936. Over the years, it has grown its portfolio in Malaysia to more than 20 products, including Coca-Cola, Fanta, Sprite A&W, and Minute Maid Pulpy juice drinks.According to Lusk, the group is the only beverage company that makes and sells zero calorie and zero sugar soft drinks in Malaysia.”We will continue to innovate our beverage portfolio and to serve sizes, including smaller packs, to provide more choices for our consumers,” he added.Lusk shared that the group will continue to actively invest locally in communities on a variety of water stewardship, recycling, youth development, and women entrepreneurship programs.”Spanning over a decade, we have invested millions behind a multitude of sustainability projects,” said Coca-Cola general manager for Singapore, Malaysia, Brunei, Vietnam, Cambodia, and Myanmar, Antonio Del Rosario.

TREDS IN COCA-COLA

A growing middle class

“A range of 500 to 1 million people will shift from low class to middle classes before the end of 2020. This will be as a result of the growth of the economic shift due to increased urbanization. More than 50 % will shift to high class from developed nations.”

Mass urbanization

“The globe is shifting from agriculture to urbanization. Thus, reasoning in this direction, cities and urban centers will be developed to the size of New York and other developed cities.

Economic rebalancing

“We view that the globe is defined by more than one economic superpower. This is because currently, there a rebalancing of economic might due to the increased number of middle-class individuals. Some of the nations that are rebalancing their economy are such as China, Turkey, Indonesia, and Mexico.

The new generation

“This new generation will be evidence of active economic engagement that is empowered by new technologies. These new technologies aids in formulating incredible modern communications.

MISSION STATEMENT:

  • To empower moments of happiness, unity, and optimism.
  • To nurture value as a means of creating a difference.

This firm’s roadmap commences with its strong mission statements. The fact that it is the leading and the giant sodas agent, it also serves as a mean for measuring its decisions and purposes. This company has outlaid the mission statements in simple two lines, which circles their meaning around refreshing the world. This part of its meaning is focused on the used strategies of manufacturing the drinks. The purpose to which the products are created is well spelled out transparently to inspire moments of happiness and optimism. Besides, the second mission statement generates a definite norm of making and implementing a sense of difference in taste. However, some concepts seem unclear from the mission statement of Coca Cola. First, the company does not distinguish the nature of its customers in the mission statements. The other thing is that the company is unclear in its ways or means of creating financial and social value. Lastly, additional critical matters such as employees’ needs and the firm’s competency are obscure in the mission statement. A strong mission statement should employ all those aspects to show the specificity of their value.

VISION STATEMENT:

The firm’s vision statement is to offer a conducive and interactive workplace where individuals are inspired to carry out their roles to the best of their capabilities.

  • Portfolio: Bring the globe to a variety of excellent beverages that satisfies peoples’ needs and desires.
  • Partners: Formulate and nurture teamwork that will attract suppliers and clients from all over the world.
  • Planet: Nurture respect and patriotism of all citizens to be responsible and make a difference while building sustainable societies.
  • Profit: Maximize all returns, i.e., Both short term and long term returns to shareowners to nurture and improve the value of being responsible.
  • Productivity: be a fast-moving firm, highly effective, and lean.

CHALLENGES

  1. Wellness and health trend: the products of this company are well known for their high level of calories due to increased sugar concentrations. Thus, health-wise, their products are regardedas harmful and not practical for human consumption. Other studies have tried to prove that Coca-Cola products contain pesticides that cause extreme health conditions such as blindness. Such kind of publicity damages the company’s market reputation, especially in the international grounds.
  2. PepsiCo competition: Its major competitor, i.e., Pepsi, is gaining market grounds both locally and internationally. These two firms compete across various categories including energy drinks, sod beverages, healthy and energy drinks, as well as bottled juices and water. Coke’s main competitor is Pepsi Co. Both brands represent the most heated enemies in the beverage business.

RECOMMENDATION

The health trends are proof of a significant threat to the worldwide beverage market. Pepsi is currently investing in health-conscious manufacturing products. These move in the global market acts as a commitment to implementing the initiative of promoting good health.The recommendable solution for the Coca-Cola Company is to improve good relations with their customers. This is because when a firm connects well with its clients, it will be able to recognize their wants and preferences. As an example, the younger generation needs energy drinks and bottled waters since they are likely to engage in sporting activities.

On the other hand, the aged members of society are more likely to consume healthy beverages and products due to diabetic problems. This assures an increased continuity of the expansion of the brand and the product line. The recommendation for Coca Cola is to stay in touch with costumers and shoppers. On the concerns about the competitive strategy under the macroeconomic context, the firm should implement a more aggressive approach that will outweigh Pepsi. Some of these strategies include creating public awareness of the importance of health and the percentage of the calories in their drinks. Also, Coca-Cola should advise its consumers on healthy living styles, such as regular exercising as a solution to breaking down the calories.

CONCLUSION

The fact that Coca-Cola has shown great successes over the past decades, the firm is not a prominent beverage company in the US. Americans consume and predominantly recognize Pepsi products over Coca-Cola products. The latter firm is aware of the local competition, and as a measure to outdo the competition, it implements defensive tactics in retaining loyal customers. (Slater, 2000, p.202). Besides, as a measure of controlling the competition, the Coca-Cola Company once decided to implement a different brand image as the majority of their consumers terms their brand name as technologically outdated.However, despite all these disadvantages, Coca-Cola is well known for its classic drinks that have alienated the coming generation from purchasing Pepsi’s products (Foust and Bynes, 2004). This has made people argue if Pepsi will outstand the competition gap that the Coca-Cola Company will create in the next 20 years. Nevertheless, Coca-Cola is still the leading beverage company.

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