Introduction
The Coca-Cola Company is one of the largest and most recognized international non-alcoholic beverage companies. Their logo alone has inspired nostalgia for generations. Founded 136 years ago, it is sold in over 200 countries worldwide with more than 500 products. Coca-Cola has over 700,000 employees worldwide. (About, n.d.)
Comparative Advantage
Coca-Cola has a comparative advantage over its rivals by being one of the most recognized logos worldwide. (Trace the 130-Year Evolution of the Coca-Cola Logo | Coca-Cola Australia, n.d.). Coca-Cola also produces “Honest Tea, Gold Peak teas and coffees, Minute Maid juices, Powerade sports drinks, Innocent Smoothies and Juices, Simply Juices, SmartWater, Sprite, ZICO Coconut Water, and Vitaminwater.” (Market.us, 2022) Coca-Cola’s main competitors are PepsiCo and Cadbury Schweppes. The Coca-Cola Company has competitors in the soft drinks industry like PepsiCo, Inc., and in other beverage companies like Nestle, Red Bull, and Starbucks. (Hughes, 2022)
Supply and Demand
Coca-Cola is a normal good, so the demand fluctuates with the income of the consumer. (Kolli, 2021) At an affordable price point, consumers will still splurge on Coca-Cola as a small pleasure despite the increased price, while others may opt for a knock-off version. Most consumers like myself are loyal to the flavor and nostalgia attached to the brand. Brand loyalty, taste, and preference of the consumer also influence the demand.
GDP in US and African markets
Coca-Cola’s biggest market is the United States with a 2021 revenue of $38.65 billion, a 17.09% increase from 2020. Africa is a key market with $2.9 billion in Coca-Cola sales. (Coca-Cola Considers Options for $6 Billion Africa Unit, 2021) The GDP for the US in 2020 was $20.94 trillion. The GDP for Africa in 2019 was $2.6 trillion.
Fluctuations in GDP, economic growth, investments, and patents and their effect on Coca-Cola’s profitability
In any healthy economy, we will see changes in the GDP. We hope to always see growth, but pandemics, economic changes, and natural disasters are not predictable. The patent of the Coca-Cola formula has a unique solution. Coca-Cola does not have a patent on its formula. According to several sites, this is to prevent the closely guarded recipe from getting out. There are, however, patents on the bottle design, and logo and over 3000 patents for other products in their portfolio. As the key product in Coca-Cola’s portfolio, this is truly an ingenious business idea that will guard its core profits.
References
About. (n.d.). The Coca-Cola Company. Retrieved September 3, 2022, from https://investors.coca-colacompany.com/about
Coca-Cola. (2019, March 3). Steward Redqueen. Retrieved September 3, 2022, from https://www.stewardredqueen.com/what-we-do/coca-cola/
Coca-Cola Considers Options for $6 Billion Africa Unit. (2021, March 30). Bloomberg.Com. Retrieved September 4, 2022, from https://www.bloomberg.com/news/articles/2021-03-30/coca-cola-is-said-to-consider-options-for-6-billion-africa-unit
Europe, Middle East & Africa. (n.d.). The Coca-Cola Company. Retrieved September 4, 2022, from https://investors.coca-colacompany.com/about/segments/europe-middle-east-africa
Hughes, J. (2022, July 11). Coca Cola Competitors Analysis : Are They Still Leading? Business Chronicler. Retrieved September 4, 2022, from https://businesschronicler.com/competitors/coca-cola-competitors-analysis/
KO Stock Price | Coca-Cola Co. Stock Quote (U.S.: NYSE). (2022, September 5). MarketWatch. Retrieved September 4, 2022, from https://www.marketwatch.com/investing/stock/ko
Kolli, S. (2021, December 12). DEMAND AND SUPPLY ANALYSIS OF COCA-COLA: - sahithi kolli. Medium. Retrieved September 3, 2022, from https://medium.com/@sahithik.isme1921/demand-and-supply-analysis-of-coca-cola-9a5addc2cb7e
Market.us. (2022, August 22). Coca-Cola Statistics, Facts,. Retrieved September 4, 2022, from https://market.us/statistics/food-and-beverage-companies/coca-cola-company/
Trace the 130-year Evolution of the Coca-Cola Logo | Coca-Cola Australia. (n.d.). Trace the 130-Year Evolution of the Coca Cola Logo. Retrieved September 3, 2022, from https://www.coca-colacompany.com/au/news/trace-the-130-year-evolution-of-the-coca-cola-logo