Pre-Analysis of the Coca Cola Company NAICS Essay

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Pre-Analysis of the Coca Cola Company

NAICS

A good resource to find an industry's North American Industry Classification System (NAICS) code is the NAICS association website http://www.naics.com/search.htm.

Porter's five forces

Supplier power

Two resources to look at supplier power are: To this day, Coca-Cola still imports coca leaves which are used to manufacture cocaine in the United States, accessible at http://www.naturalnews.com/032658_Coca-Cola_cocaine.html; and SugarOnline.com, http://www.sugaronline.com/. The first resource discusses how Coca-Cola is the only company that is legally allowed to import coca leaves and manufacture cocaine in the United States. The second resource offers information about the worldwide availability of sugar. Because the coca leaves are the product that cannot be replaced with corn syrup, the first article is more helpful.

Buyer Power

Two sites that can help explain buyer power are: In Coke- Pepsi rivalry, both sides win accessible at: http://www.thestreet.com/story/10490193/1/in-coke-pepsi-rivalry-both-sides-win.html, and Coca Cola's own information page titled Our company, accessible at: http://www.thecoca-colacompany.com / ourcompany/index.html; Both sites give information about the number of customers, which help explain the power of individual buyers. The second site is slightly more helpful because it focuses on Coca Cola customers.

Competitive rivalry

Two sites that can help explain competitive rivalry are: In Coke- Pepsi rivalry, both sides win accessible at: http://www.thestreet.com/story/10490193/1/in-coke-pepsi-rivalry-both-sides-win.html, and Coca Cola's own information page titled Our company, accessible at: http://www.thecoca-colacompany.com / ourcompany/index.html. The first site explains how the rivalry between the big cola companies actually helps drive business for both companies.

Threat of substitution

In order to determine whether other products can be substituted for soft drinks, it is important to understand why people choose to drink soft drinks.

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Two resources that can help are: Caffeine: What are the effects of caffeine, accessible at: http://www.mycaffeineaddiction.com/; and Diet soda addiction? How to get off the can, accessible at: http://www.huffingtonpost.com/2011/03/04/diet-soda-addiction-_n_830997.html.

Threat of new entry

To understand the threat of new entry one must understand the cola industry. Two sites that help explain the cola industry are In Coke- Pepsi rivalry, both sides win, accessible at http://www.thestreet.com/story/10490193/1/in-coke-pepsi-rivalry-both-sides-win.html; and Coke and Pepsi, accessible at http://faculty.haas.berkeley.edu/meghan/299/Case_analysis_ Coke_Pepsi2.pdf. The second site actually gives a 5 forces analysis, explaining the threat of new entry, so it is a better resource.

PEST Analysis

Political

Two resources to examine Coca Cola's economic factors are: Coke and Pepsi, accessible at http://faculty.haas.berkeley.edu/meghan/299/Case_analysis_ Coke_Pepsi2.pdf; and Water and development, accessible at http://www.globalissues.org/article/601/water-and-development#CocaColavsIndianFarmersLuxuryvsNecessity. The second site is a better resource because it not only explains potential political problems but also how those have impacted Coca Cola's business in the past.

Economic

Two sites that look at Coke's economic health are: In Coke- Pepsi rivalry, both sides win accessible at: http://www.thestreet.com/story/10490193/1/in-coke-pepsi-rivalry-both-sides-win.html, and Coca Cola's own information….....

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