Business Report On Coca-cola Company Essay Example | Topics and Well Written Essays - 2000 words

Business Report On Coca-cola Company - Essay Example Three factors which will be discussed in the report will be addressing the erosion of the profitability of the company. The factors include profit and nonprofit competition, actual or threat of potential entry and competition by products from outside the company. The report will also address the extent to which the coca-cola company has economic power to charge higher prices. Last the report will detail the strategies the company has employed to remain competitive in the market. Profit is the financial benefit realized when the difference between income and expenses yields an amount that is capable of sustaining the business activity. Profitability therefore is measured using income and expenses and this is the primary goal on any business venture. Price and non price competition, actual or threat of potential entry by competitors and competing products from outside the company are the immediate concerns in this context and therefore are adequately elaborated. The purpose of this report is to provide information for the management of the coca-cola and affiliates about the extent to which price or non price competition, actual or potential threat to entry in the industry by competitors and competing products from outside the company erode the profitability of coca-cola company. The report also addresses the extent to which the company have economic power to charge higher prices and lastly, strategies the company has put forth to remain competitive in the market. ... INTRODUCTION The purpose of this report is to provide information for the management of the coca-cola and affiliates about the extent to which price or non price competition, actual or potential threat to entry in the industry by competitors and competing products from outside the company erode the profitability of coca-cola company. The report also addresses the extent to which the company have economic power to charge higher prices and lastly, strategies the company has put forth to remain competitive in the market. Coca-cola Company is a multinational business whose headquarters is in America. Coca-cola manufactures, markets, retails and wholesales non alcoholic beverages and concentrates. The company was founded by Assa Griggs candler in 1892 and its headquarters based in Atlanta,CA. Ever since, the company has been on operation despite numerous challenges she has faced. Five major topics make up this report. To what extent does price or non price competition erode the profitabil ity of the company? To what extent does actual or potential threat erode the profitability of the company? To what extent does competing products from outside the company erode the profitability of the company? To what extent does Coca-Cola Company have economic power to charge higher prices? The strategies the coca-cola company has used to remain competitive in the ever changing global community. All these factors are discussed elaborately and adequately. PRICE AND NON-PRICE COMPETITION. Price competition is a situation where a company cuts the price of the product and instead offers it at a lower rate than usual. The price cut could be due to the company’s own volition or as a