Blog 1: Milestone 1
Billie Shattuck
Regent University
ECON 230 (02): Macroeconomics
Dr. Jeff Bahah
March 25, 2022
Blog 1: Milestone 1
Company Overview
The Coca-Cola Company, NYSE: KO (2022), is a total beverage company with products sold in more than 200 countries and territories with brands consisting of Coca-Cola, Sprite, Fanta, and other sparkling soft drinks, hydration, sports, coffee, and tea brands include Dasani, SmartWater, Vitaminwater, Topo Chico, Powerade, Costa, Georgia, Gold Peak, Honest, Ayataka, and BodyArmor. (Coca-Cola, 2022, About the Coca-Cola Company, para. 1)
The Comparative Advantage Over its Rivals
As a total beverage company, Coca-Cola is “present in almost every beverage category having approximately 200 master brands, over 700,000 people in their system help deliver those brands to customers every day” (Coca-Cola, 2022, Strategy/Overview/ Purpose, para. 2). As Proverbs 16:26 states, “a worker’s appetite works for him, for his hunger urges him on” (New American Standard Bible, 1995).
Additionally, “Digital is beginning to play an integral role in their RGM strategy, providing competitive advantages” (Coca-Cola, 2022, Growth Strategy/Revenue Growth Management, para. 3). The rivals include “PepsiCo, Quaker Oats, Gatorade, Aquafina, and Frito Lay, with Frito Lay commanding 60% of the US snack food markets with its broad range of chips, and acquisition of food companies in Europe and China” (The Great PepsiCo Fightback: Why Fizz No Longer Matters, 2007, p. 17).
The Supply and Demand For Coca-Cola’s Key Product or Service
According to Coca-Cola (2022), “for both the quarter and the year, growth in developing and emerging markets was led by China, India, and Russia, while growth in developed markets led by the United States, Mexico, and the United Kingdom” (Earnings Release, p. 4). From Coca-Cola’s Income Statement provided, Net Operating Revenues from December 31, 2020, were $33,014 (USD in millions) and $38,655 (USD in millions) on December 31, 2021, an increase of $5641 million in revenue. (Coca-Cola, 2022, Earnings Release, p. 14).
GDP of Coco-Cola’s Home Country and A Key Market (Country)
The revenue segment from North America in 2020 was $11,477 (USD in millions) and $13,190 in 2021. Europe, the Middle East & Africa’s segment brought revenues of $6057 (USD in millions) in 2020 and $7193 (USD in millions) in 2021. (Coca-Cola, 2022, Earnings Release, p. 14). The GDP for the United States is 14.93%, and the GDP for Europe, the Middle East & Africa is 18.76%.
The Fluctuations in GDP, Economic Growth, Investments, and Patents Affect the Company’s Profitability
According to the Coca-Cola Company’s earnings release (2022), “the volume performance was driven by investments in the marketplace and ongoing recovery in markets where coronavirus-related uncertainty was abating” (p. 4). “Considered one of the leading global brands among the most admired corporations, Coca-Cola claims it supports the fight against obesity, sponsoring campaigns, research, and initiatives to promote physical activities” (Gertner & Rifkin, 2018, p. 161).
References
Coca-Cola (2022). The Coca-Cola Company. All Rights Reserved. Retrieved March 23, 2022
from https://www.coca-colacompany.com/home
New American Standard Bible (1995). Retrieved March 25, 2022, from
https://www.biblegateway.com/passage/?search=romans+8%3A28&version=NASB1995
Gertner, D. & Rifkin, L. (2018). Coca‐Cola and the Fight Against the Global Obesity
Epidemic. Thunderbird International Business Review, 60(2), 161-173. https://doi.org/10.1002/tie.21888
The Great PepsiCo Fightback: Why Fizz No Longer Matters (2007). Strategic Direction
(Bradford, England), 23(7), 17-20. https://doi.org/10.1108/02580540710753418
Very well thought out. I believe that Coca-Cola has a comparative advantage over their competitors due to the age of the company, being the oldest soft drink company, as well as the company partnering with bottling companies to bottle the product (accessed 2022). This gives Coca-Cola the opportunity to focus on the perfection of the product itself instead (accessed 2022). Coca-Cola also produces many different types and flavors of beverages as apposed to only one kind of beverage.
Comparative analysis of Coca-Cola Company and PepsiCo. (2019, Aug 19). Mary Essays. https://maryelizabethbodycare.com/comparative-analysis-of-coca-cola-company-and-pepsico/