External Analysis Coca-Cola SWOT

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Coca Cola -- External Analysis

An external analysis of Coca-Cola (NAICS # 312111 -- Soft Drink Manufacturing) requires scrutiny of the specific industry environment with Porter's 5-Forces model and examination of the larger business environment through a PEST analysis. In his interview on YouTube, Porter speaks of the five factors of Competitive Rivalry, Threat of New Entrants, Threat of Substitute Products, Bargaining Power of Suppliers, and Bargaining Power of Buyers. He also discusses the underlying forces for each factor, examining the Airline Industry, in which all five factors are strong, and the Soft Drink Manufacturing Industry, in which all five factors are "benign," essentially making the Soft Drink Industry "a license to print money" (Harvard Business Publishing, 2008). Porter stresses the importance and flexibility of his five forces, which keeps an organization focused on "underlying fundamentals" so the organization's leadership is not tricked or trapped by the latest trend or sensation (Harvard Business Publishing, 2008).

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Explaining that his five forces are dynamic rather than static, Porter emphasizes constantly reexamining how the company, and ideally everyone working for the company, are broadly pursuing a "common proposition of gaining competitive advantage" (Harvard Business Publishing, 2008) and assures his audience that competition does not have to be a "zero sum" competition; rather, there can be many "pieces of the pie" and each company within an industry can offer a unique way of serving various consumer needs so all the companies within an industry can thrive (Harvard Business Publishing, 2008).

Using Porter's Five Forces.....

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