Qverview of the company and its external environment

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//Coca-Cola is one of the most valuable brands in the world, which produces beverages. It was established in the year 1886 and is still continuing its journey on the path, facing ups and downs. In the following section, a brief overview of the company is given, along with the strategies that the company is following.//
Background of the Company
Coca-Cola manufactures and distributes non-alcoholic drinks in the markets across the globe. Coca-Cola has the license of more than 400 brands, which comprises of light and diet drinks, juices, tea, coffees and energy drinks. It has a business consisting of the packaging process such as canning and bottling (Gomez, 2012). Coca-Cola sells its products consisting of Coca-Cola trademark in countries in more than 200 countries in the world. In the year 2006, Coca-Cola started focusing on Africa, South Asia, Latin America, North America, and North Asia (Gomez, 2012).
Coca-Cola conquered all the sectors of the soft drink industry, which included fruit/ vegetable juices and ready to drink juices. Coca-Cola was at the second position in the world in manufacturing such kind of drinks, and it achieved great popularity in Asia. However, it stood at the third position in producing bottled water (Gomez, 2012). Coca-Cola, in terms of volume, stood at the second position and the third position in the world in terms of value. Coca-Cola ranked number one in value in the world for providing ready to drink tea (Gomez, 2012).
Coca-Cola is a precious brand in the world, which has been recognized across the globe. Coca-Cola started its business in May 1886, and continued its journey from the wartime to the period of prosperity and economic stability, completing more than a century of operations (Gomez, 2012). In the year 1990, Coca-Cola became the most reputed company in the world, which was known for its creation of successful teams. However, from the starting of 1998, the company has been struggling with issues such as quality issues. People were surprised as they wondered if Coca-Cola has lost its real value (Gomez, 2012).
External Analysis
The competitive state is the major factor for an organization to determine its progress ratio. However, competition takes place as per the industry, and competition in the industry, producing soft drinks, has its own structure. There are five forces present, which are given by Porter, so as to analyze the external environment of an organization (Hassan, Amos & Abubakar, 2014).
The five forces of Porter are as follows:
• Threat of new entrants
• Threat of substitutes
• Threat of suppliers
• Competitive rivalry
• Bargaining power of buyers (Hassan, Amos & Abubakar, 2014).
Porter introduced these five forces in 1980 to understand and evaluate the economics of the industry (Hassan, Amos & Abubakar, 2014). Porter described these five forces to determent an organization's profit value, substitutes of the products, rivals in the industry, and new entrants in the industry, suppliers, and buyers of the organization. The inference from these five forces is that if the forces are weak, there is a huge threat to the company within the industry (Hassan, Amos & Abubakar, 2014).
A detailed description of the forces is provided below:
Threat of New Entrants
The new entrants are not a threat to the soft drink industry.
• There are mainly two brands in the soft drink industry, namely Coca-Cola and PepsiCo, which have a strong impression of their brand in the market, as well as have strong ability for distribution (Hassan, Amos & Abubakar, 2014).
• Besides these factors, the soft drink industry does not give a chance to new entrants to grow further. Therefore, it becomes difficult for the new entrants to compete with the ...