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INTERNATIONAL BUSINESS
Presented by:-
Alisha Mody - 9
Jesal Vaidya - 38
Shibin Varughese - 101
Kirk Quadros - 52
ra!ish Man"hal#ad - $0
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COCA-COLA
3
Name The Coca Cola Company
Logo
Industries served Beverages
eographic areas served !orld"ide
#ead$uarters %&'&
Current C() *uhtar +ent
,evenue ./&01 billion 2435
Pro6it 7&4 billion 2435
(mployees 4./82 2435
*ain CompetitorsPepsiCo Inc&8 9r Pepper 'napple roup8 Inc&8%nilever8 roupe 9anone8 +ra6t oods Inc&8Nestl; '&
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THE COCA-COLA COMPANY'S NET OPERATING REVENUES WORLDWIDE FROM 2007 TO 2013 (IN BILLION U.S. DOLLARS
200% 2008 2009 2010& 2011& 2012 2013
0
10
20
30
'0
50
$0
20&0/34&7. 3&77
31&42
./&1. .0&2 ./&01
(e)enues in billion *+S+ dollars
.
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MAR!ET SHARE OF THE COCA-COLACOMPANY AND OTHER SOFT DRIN!COMPANIES WORLDWIDE IN 2013" BASED ON
SALES VALUE
,he o"a-ola o+ e.sio /n" es!l SA !her
0+0
10+0
20+0
30+0
'0+0
50+0
$0+0
%0+0
21&7=
44&1=
3=
17&/=
4lobal arke! share
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PESTLE ANALYSIS
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FACTORS
Changes in la"s and regulations6"hanges in a""oun!ing
s!andards7 !aa!ion reuireen!s :!a ra!e "hanges7 odi;ied !ala# in!er.re!a!ions7 en!ran"e o; ne# !a la#sets6"i)il"on;li"!7 go)ernen!al "hanges7 and res!ri"!ions "on"erning !heabili!y !o relo"a!e "a.i!al a"ross borders+
ets6!his alsorelies on e"onoi" and .oli!i"al "ondi!ions7 su"h as "i)il "on;li"! andgo)ernen!al "hanges7 as #ell as o"a-ola=s abili!y !o ;ore;;e"!i)ely s!ra!egi" business allian"es #i!h lo"al bo!!lers7 and !oenhan"e !heir .rodu"!ion aeni!ies7 dis!ribu!ion ne!#orks7 saleseui.en!7 and !e"hnology+
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FACTORS
1+ >uring !he re"ession o; 20017 os! o; !he
go)ernen!s !ook aggressi)e a"!ions !o !urn !hee"onoy around by 2002+
2+ o"a-ola !ook no!e o; !his7 and reali?ed !ha! loanin!eres! ra!es #ould likely rise as !he e"onoy
re!urned+ ,hus7 !hey !ook ou! lo#-"os! loans in2001 !o ;und gro#!h in 2002+ ,hey used !he loans;or resear"h and de)elo.en! on ne# .rodu"!s !o"a.i!ali?e on in a s!rong 2002 e"onoy+
3+ urren!ly7 as global gro#!h is slo#ing7 o"a-olaay be #a!"hing ;or a siilar o..or!uni!y+
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SOC AL ANALYS S AND FACTORS
1+ ,he a@ori!y o; .eo.le in uro.e are sho#ing in"reasing
in!eres! in heal!hy li;es!yles+ ,ha! has s!rongly in;luen"ed !hesales #i!hin non-al"oholi" be)erage se"!or as any"us!oers s#i!"h !o bo!!led #a!er and die! "olas su"h aso"a-ola Bigh! or Cero+
2+ ,ie anageen! is a "on"ern ;or '3 .er"en! o; all
households7 a .er"en!age !ha! has in"reased o)er !he years+3+ us!oers ;ro ages 3% !o 55 are "on"erned #i!h !heir
nu!ri!ion+ Also7 a large .or!ion o; !he .o.ula!ion are babybooers+ As !hey be"oe seniors7 !hey are ore "on"ernedabou! li;e "hoi"es !ha! #ill i.a"! !heir li;e e.e"!an"y+ ,ha!
#ill "on!inue !o a;;e"! !he non-al"oholi" be)erage se"!or byin"reasing !he deand ;or heal!hier drinks+
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TECHNOLOG CAL ANALYS S AND
FACTORS
The e66iciency o6 a company@s advertising8 mar>eting8 andpromotional programs6Dor ea.le7 !ele)ision7 #eb7 and so"ialedia ad)er!ising are "ons!an!ly e)ol)ing+ ,he abili!y o; a "o.any !oe;;e"!i)ely .roo!e !heir .rodu"!s !hrough !hese "hannels i.a"!s sales+
Pac>aging design6/n !he .as!7 !he in!rodu"!ion o; "ans and .las!i"bo!!les in"reased sales )olue ;or !he "o.any due !o ho# easy !hese"on!ainers #ere !o "arry and dis.ose+
Ne" e$uipment6Ee"ause !he !e"hnology is "on!inuously ad)an"ing7ne# eui.en! is "ons!an!ly being in!rodu"ed+ Ee"ause o; !hese ne#!e"hnologies7 o"a-ola=s .rodu"!ion )olue has in"reased shar.ly"o.ared !o !ha! o; a ;e# years ago+
Ne" 6actories6o"a-ola n!er.rises :< has si ;a"!ories in Eri!ain!ha! use odern !e"hnology !o ensure !he uali!y and s.eedy deli)ery o;.rodu"!+ /n 19907 o.ened one o; uro.e=s larges! so;! drinks;a"!ories in Fake;ield7 Gorkshire+ ,he ;a"!ory has !he abili!y !o .rodu"e"ans o; o"a-ola a! a ;as!er ra!e !han a a"hine gun "an ;ire bulle!s+
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SWOT ANALYSIS
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Feakness
,hrea!
..or !
uni
!y
S!reng!h
'!)T
1. T#$ %$& )*%+)%,+ / #$*,) / $,& *+)4$ (577"63%/))/*
2. W*,)8& )+,$&
+,9$ +,$ /%$$,+$
3. S,* +,9$/+ +$,/&/
:. M*& $;$&/$%$$,+$/&,/%4/*+)>
?. B+,+// @*$,*$, &4@@)/$,&
7. C*,@*,+$ &*
1. B*)$ +$,
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SWOT
4&The best global brand in the "orld in terms o6 value+ A""ording !o /n!erbrand7,he o"a ola o.any is !he os! )alued :H%%7839 billion< brand in !he #orld+
2&!orlds largest mar>et share in beverage+ o"a ola has !he larges! be)eragearke! share in !he #orld :abou! '0
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SWOT
4&'igni6icant 6ocus on carbonated drin>s& ,he business is s!ill ;o"using onselling oke7 Dan!a7 S.ri!e and o!her "arbona!ed drinks+ ,his s!ra!egy #orks inshor! !er as "onsu.!ion o; "arbona!ed drinks #ill gro# in eerging e"onoiesbu! i! #ill .ro)e #eak as !he #orld is ;igh!ing obesi!y and is o)ing !o#ards"onsuing heal!hier ;ood and drinks+
2&%ndiversi6ied product port6olio+ *nlike os! "o.anyIs "o.e!i!ors7 o"a
ola is s!ill ;o"using only on selling be)erage7 #hi"h .u!s !he ;ir a! disad)an!age+,he o)erall "onsu.!ion o; so;! drinks is s!agna!ing and o"a ola o.any #ill;ind i! hard !o .ene!ra!e !o o!her arke!s :selling ;ood or sna"ks< #hen i! #ill ha)e!o sus!ain "urren! le)el o; gro#!h+
3&Negative publicity+ ,he ;ir is o;!en "ri!i"i?ed ;or high #a!er "onsu.!ion in#a!er s"ar"e regions and using har;ul ingredien!s !o .rodu"e i!s drinks+
.&Brand 6ailures or many brands "ith insigni6icant amount o6 revenues+ o"aola "urren!ly sells ore !han 500 brands bu! only ;e# o; !he brands resul! in ore!han H1 billion sales+ lus7 !he ;irIs su""ess o; in!rodu"ing ne# drinks is #eak+Many o; i!s in!rodu"!ion resul! in ;ailures7 ;or ea.le7 2 drink+
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WEA!NESS
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SWOT
4&Bottled "ater consumption gro"th+ onsu.!ion o; bo!!led #a!er ise.e"!ed !o gro# bo!h in *S and !he res! o; !he #orld+
2&Increasing demand 6or healthy 6ood and beverages+ >ue !o any.rogras !o ;igh! obesi!y7 deand ;or heal!hy ;ood and be)erages hasin"reased dras!i"ally+ ,he o"a ola o.any has an o..or!uni!y !o ;ur!her
e.and i!s .rodu"! range #i!h drinks !ha! ha)e lo# aoun! o; sugar and"alories+
3&ro"ing beverages consumption in emerging mar>ets+ onsu.!ion o;so;! drinks is s!ill signi;i"an!ly gro#ing in eerging arke!s7 es.e"ially E(/"oun!ries7 #here o"a ola "ould in"rease and ain!ain i!s be)erages arke!
share+.&ro"th through ac$uisitions+ o"a ola #ill ;ind i! hard !o kee. "urren!gro#!h le)els and #ill ;ind i! hard !o .ene!ra!e ne# arke!s #i!h i!s eis!ing.rodu"! .or!;olio+ All !his "an be done ore easily !hrough a"uiring o!her"o.anies+
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OPPORTUN T ES
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SWOT
4& Changes in consumer tastes+ onsuers around !he #orld be"oe ore heal!h"ons"ious and redu"e !heir "onsu.!ion o; "arbona!ed drinks7 drinks !ha! ha)e large
aoun!s o; sugar7 "alories and ;a!+ ,his is !he os! serious !hrea! as o"a ola isainly ser)ing "arbona!ed drinks+
2& !ater scarcity+ Fa!er is be"oing s"ar"er around !he #orld and in"reases bo!h in"os! and "ri!i"is ;or o"a ola o)er !he large aoun!s o; #a!er used in .rodu"!ion+
3& 'trong dollar + More !han $0 o; ,he o"a ola o.any in"oe is ;ro ou!side*S+ >ue !o s!rong dollar .er;oran"e agains! o!her "urren"ies ;irIs o)erall in"oe
ay ;all+
.& Legal re$uirements to disclose negative in6ormation on product labels+ Soeo"a olaIs "arbona!ed drinks ha)e ad)erse heal!h "onseuen"es+ Dor !his reason7any go)ernen!s "onsider !o .ass legisla!ion !ha! reuires dis"losing su"hin;ora!ion on .rodu"! labels+ rodu"!s "on!aining su"h in;ora!ion ay be .er"ei)ednega!i)ely and lose i!s "us!oers+
1& Competition 6rom PepsiCo+ e.sio is ;ier"ely "o.e!ing #i!h o"a ola o)erarke! share in E(/ "oun!ries7 es.e"ially /ndia+
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THREAT
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ENTRY STRATEGY OFCOCA-COLA IN EUROPE
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WHY HAS COCA-COLA ENTEREDEUROPE
4& *ar>et Potential and 'hare uro.ean arke! has grea! .o!en!ial and okes Marke! Share in uro.e
is lo# as "o.ared !o i!s "o.e!i!ors+
2& Improve *ar>et Position
3& ,eduction in costs
.& ormation o6 (uropean %nion:
/! #as !he .eriod #here Dora!ion o; uro.ean *nion #as !o !ake .la"eand !his #ould lead !o no !ari;; be!#een * "oun!ries and hen"e aking i!.ossible ;or "oke !o u!ili?e i! Manu;a"!uring and bo!!le asse!s and .ar!ners!o e;;i"ien!ly su..ly i!s .rodu"!s !o re!ailers !aking in!o "onsidera!ion !ha!i! #as "hea.es! and os! ra.idly a)ailable ;a"!ors+
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HOW HAS COCA-COLA ENTEREDEUROPE
oke o.ened i!s ;irs! bo!!ling .lan! in uro.e in aris and Eordeau in 1919
,his #as !hrough a"uisi!ion Lba"k#ard )er!i"al D>/+
o"a-ola has also used e!#ork Model:Allian"e and Join! Ven!ures<
*)9( ) (NT,A:
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HOW HAS COCA-COLA ENTERED EUROPE
1+ ons!ru"!ion o; ne# bo!!ling .lan!s is hel.ing !he "o.any
.rodu"e a lo# "os! .rodu"!+
2+ Marke!ing e.endi!ures are hel.ing !he "o.any !o gain !he.rodu"! re"ogni!ion needed ;or gro#!h+
3+ >ire"! in)es!en!s in ;a"ili!ies "loser !o !he arke! are redu"ingdeli)ery !ie and eliina!ing i.or! du!ies+
,he o"a-ola "o.any is ha)ing e!ensi)e .rodu"!ion abroad #i!h;oreign dire"! in)es!en! and all ;un"!ions like e.or!ing andi.or!ing and also ;ran"hising+
Dor ea.le in ,urkey o"a-ola gi)es ;irs! ;ran"hising !o /MSA:OAS4rou.< in 19$'+
oke is aking D>/ in order !o i.ro)e i!s arke! .osi!ion es.e"iallyin uro.e+
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ENTRY MODE STRATEGY IN RUSSIA
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2
B CHALLENGES
FAC NG CO!E.
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B CHALLENGES FAC NG CO!E.
Oeal!h !hrea!ening and "heering obesi!y
Lhild labour s#ea!sho.s
,he Eri!ish Mono.olies and Mergers oission is in)es!iga!ing.ossible an!i-"o.e!i!i)eness in okeIs @oin! )en!ures+
/n /!aly7 San ellegrino7 !he ineral #a!er "o.any7 has ;iled a
"o.lain! #i!h !he oission o; !he uro.ean ouni!ies7
/n;il!ra!ion o; !he be)erages arke! by o!her s!rong o.anies su"has e.si and "o
2 3
T#$ ,*+ '* &4
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B CHALLENGES FAC NG CO!E.
Dlu"!ua!ion o; one!ary "a.i!al e"hange be!#een"oun!ries+
Oeal!h on"ern raised and ega!i)e ubli"i!yN /n 20037 !heen!re ;or S"ien"e and n)ironen! :S
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CONCLUSION
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THAN! YOU