Strengths Weaknesses Internal Brand strength/image and recognition Product distribution and worldwide Network Bad global website compared to Pepsi Negative publicity External Opportunities Bottled water growth Health consciousness growth Non carbonated drinks are the fastest growing part of the industry Commodity prices growth Intense competition Growing concerns over health issues This table above illustrates SOOT Analysis of Coca Cola show in Figure. The PESTLE Analysis is a popular method that focuses on the external factors of the business and the environment where it operates.
PESTLE stands for Political, Economic, Sociological, Technological, Legal and Environmental. All of them examine the changes in the market place. Political Analysis Political Analysis examines the current and potential influences from political pressures. The changes in laws and regulations, such as accounting standards, taxation requirements and environmental laws can affect the company. The other hand, the changes in the nature of the business of non-alcoholic beverages can gain competitive product and pricing pressures, the ability to improve or maintain the share in sales in the global market as result of action by competitors.
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Economic Analysis The non-alcoholic beverage industry has high sales in countries outside the United States. These markets will continue to play a major role in the success and stable Sociological Analysis This analyses the ways in which changes in the society affect the organization such as changing in life styles and attitudes of the market. Consumers from the ages of 7 to 55 are also increasingly concerned with nutrition. Many persons are reaching an older age in life they are becoming more concerned with increasing their longevity.
This will continue to affect the beverage industry by increasing the demand overall and in the healthier beverages. Therefore the demand for carbonated drinks decreases and this pulled down the revenue of Coca Cola. Technological Analysis Technology is the main focus of the analysis where the introduction and the emerging technological techniques are valued. This creates opportunities for new products and product improvement in terms of marketing and production. As technology advances, new products are introduced into the market.
Legal Analysis The legal aspect focuses on the effect of the world legislation. However, the company receives all rights applicable in the nature of the business and product development. Environmental Analysis The environmental analysis examines the local and world environmental issues. Therefore, all of the facilities are strictly monitored by the environmental laws that is imposed by the government for the company.