Coca Cola Analysis
1
I. Introduction
“Coca-Cola and Shasta.” These two products are in the same industry and both were invented around the same time. Nonetheless, a very different perception comes to consumers‟ mind when they hear these two words. In the 21st cent ury, Coca-Cola is considered one of the most valuable brands in the world, whereas Shasta is mostly known in United States, particularly in the West Coast region. Coca-Cola is owned and operat ed by The Coca-Cola Company, and
Shasta is currently owned by National Beverage Corp. This report will examine, compare, and analyze both companies in terms of operation, promotion, management, and finance. In addition,
SWOT analysis and Porter‟s Five Forces will be conducted to evaluate the companies‟ positions in the industry. The report will also identify several issues that both companies currently face and suggest alternatives and recommendations in order assist Shasta, a subsidiary of National
Beverage Corp., to gain more market share. Table 3 exhibits that National Beverage Corp. makes up only about 2.8% of the soft drink industry in 2010.
Company Background
Dr. John Pemberton, a pharmacist from Atlanta, invented Coca -Cola in 1886. The world‟s largest non-alcoholic beverage company trademarked its name and logo in 1893. After thirty years of establishment, the company went public in 1919. The share price of its initial public offering (IPO) was $40 a share (Datamonitor, 2010). Coca-Cola expanded rapid ly; it is currently available in more than 200 countries and reaches about 99% of the world population
(National Geographic Channel, 2011). Consumption rate of trademarked or licensed products amounts to 1.7 billion servings a day. As of December 31, 2010, the company has 139,600 employees worldwide (The Coca-Cola Company, 2011).
Similarly, Shasta was founded in 1889, three years after Coca-Cola. In Northern
California, Mt. Shasta, “a group of businessmen opened a health and vacation resort at the s ite
I. Introduction
“Coca-Cola and Shasta.” These two products are in the same industry and both were invented around the same time. Nonetheless, a very different perception comes to consumers‟ mind when they hear these two words. In the 21st cent ury, Coca-Cola is considered one of the most valuable brands in the world, whereas Shasta is mostly known in United States, particularly in the West Coast region. Coca-Cola is owned and operat ed by The Coca-Cola Company, and
Shasta is currently owned by National Beverage Corp. This report will examine, compare, and analyze both companies in terms of operation, promotion, management, and finance. In addition,
SWOT analysis and Porter‟s Five Forces will be conducted to evaluate the companies‟ positions in the industry. The report will also identify several issues that both companies currently face and suggest alternatives and recommendations in order assist Shasta, a subsidiary of National
Beverage Corp., to gain more market share. Table 3 exhibits that National Beverage Corp. makes up only about 2.8% of the soft drink industry in 2010.
Company Background
Dr. John Pemberton, a pharmacist from Atlanta, invented Coca -Cola in 1886. The world‟s largest non-alcoholic beverage company trademarked its name and logo in 1893. After thirty years of establishment, the company went public in 1919. The share price of its initial public offering (IPO) was $40 a share (Datamonitor, 2010). Coca-Cola expanded rapid ly; it is currently available in more than 200 countries and reaches about 99% of the world population
(National Geographic Channel, 2011). Consumption rate of trademarked or licensed products amounts to 1.7 billion servings a day. As of December 31, 2010, the company has 139,600 employees worldwide (The Coca-Cola Company, 2011).
Similarly, Shasta was founded in 1889, three years after Coca-Cola. In Northern
California, Mt. Shasta, “a group of businessmen opened a health and vacation resort at the s ite
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