Coke - US Operations
Being a Fortune 500 Company, Coca Cola was ranked 72nd largest American company in the 2010 list. The sales volume rose 6 percent and the total revenue 143 percent, mostly due to the acquisition of bottlers. A major strength of Coke is, more than 70 percent revenue comes from its home land Unites States itself.
The Coca Cola Company, headquartered in Atlanta, Georgia is the American multinational beverage corporation that is into manufacturing, retailing and marketing of non-alcoholic beverages and syrups. Bought in 1889 and incorporated in 1892 by Asa Chandler, the company today offers more than 500 brands in over 200 countries. With 200 bottling partners worldwide, the company serves more than a billion people each day. The company's revenue stands at $35 billion and its assets worth $72 billion as of year 2010. Though the company has hundreds of brand underneath on its belt, its primary product is Coca Cola, which was invented by John Stith Pemberton in 1886.
The home ground being US, is a huge market for the company. With a fair chance to diversify, it can introduce complementary food products that could lead to more soft drink consumption. It can also increase its associations with more and more fast food chains in USA. A problem that it faces is the low market growth rate in North America for carbonated drinks. In addition to this, lot of substitutes, competition in the form of another giant; Pepsi and the health conscious lifestyle in people are major threats for Coke.
Coke's uniqueness lies in its goals which are direct: Maximum consumption of their product. This makes them form strategies as to how they reach out to maximum customers across the country. The product mix of the company includes energy drinks, juices, soft drinks, sports drinks, tea, coffee and much more. Qualities like creativity, motivation to achieve extra-ordinary things from the employees forms the work culture at Coke. The company has almost 70,000 associates in the US. A collaborative culture runs across the company where every department is involved and contributes ideas across various areas.
As the market trends change and people become more environment and health conscious, Coke too seems to have similar change in plans. It has announced plans to launch 'Coca-cola zero', a zero calorie drink to sustain its health oriented customers. Along with this, the company has planned to operate and market its brands keeping the environment factor in mind which is causing trouble to the business in various places. The question that arises in the end is whether Coke will stand up to the challenges that it faces in the future? And will it always remain the most famous brand in the USA?