Why Does Firm Performance Suffer?

Coca-cola: from the begining of the brand, the name "coca-cola" has been very famous and is known by everone as it guided

Without the usage of certain resources, humankind would not be able to flourish and would eventually die off. Some examples of resources that are vital to the survival of humans, animals and vegetation are:

By the time united states entered the World war 2,coca cola was already an established as a symbol of the American life .In countless homes solider’s spoke about fighting abroad for iced cola’s. As the soliders were addicted to coca cola, coca cola’s president Robert Woodrufff declared that any American in uniform wherever in the world he is would get a bottle of coca cola for just 5 cents regardless the price or production cost that company has to bear.

Once these military bases were set up there were many cases of Coke sent to them. When WW II began the Coca-Cola Company made a promise to service men and women that they would never have to pay more than a nickel

There are five main components of an Internal Analysis, including resources, capabilities, core competencies, competitive advantage, and strategic competitiveness. Each component is the basis of next one in turn.

In the battle of soda wars, there have always been two, Coke and Pepsi. This report takes the two and separates them apart to determine several factors between the two. First of all we had to define PepsiCo and Coca-Cola Companies as they are both global companies and with PepsiCo, they are bigger than just beverages. This report just looks at beverages and North American business side of each company. Next, how important is Coke important to Coca-Cola’s business and Pepsi to PepsiCo’s business. With Coke being an exclusive beverage company, it is more important to Coca-Cola’s success. However, Pepsi is still important to PepsiCo. Lastly, does demographics play a factor on what beverage is preferred? As in the article that is mentioned later, the locals play a big part in the success of the drink. If it isn’t successful locally, it will never be successful. Also, let’s not forget cost. As with anything that is purchased there is always a cost. Beverages do play a huge part in what people buy.

Coca-Cola’s portfolio features 17 billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, Vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del

VRIO analysis is a suitable strategic tool that is essential in evaluating the sustainability of a corporation’s competitive advantage. By analyzing the capabilities and resources of a firm, the management is able to identify the suitable approaches of increasing the firm’s market share and broadening the consumer base. One of the key elements encompassed in the VRIO framework entails the value of the identified capabilities and resources. In order to acquire a sustainable competitive advantage over other participants in the targeted market, a company ought to focus on the resources that increase a firm’s value. This includes the firm’s ability to exploit the available business opportunities and mitigate the potential risks.

Coca-Cola corporation produces soft drinks, which has 19 brands. It launched ‘Share a coke’ in 2013. Bottles of Regular coke, Diet Coke and Coke Zero were printed the most popular names. Joseph (2015) states that the volume of the coke sold rocked 2.9% from April to June.

In terms of brand performance, the original and the most popular product of Coca-Cola is Coke, which can be seen as a reference to Cola-flavored products. The company also owns a distinctive logo drawn in flowing handwriting since the beginning of its business with

VRIO analysis is a method of analyzing a company’s resources. The resources are human resources, financial resources, non-material resources (knowledge, information), and material resources. Through VRIO analysis, each resource is analyzed for the organization and its competitors. VRIO stands for value, rareness, imitability, and organization. Value entails knowledge of how expensive a resource is and how easily it may be obtained. Rareness means how limited or rare a resource is. When the company meets any difficulties trying to copy the resource, it has to deal with the imitability (Glavas & Mish, 2015). And finally, organization refers to the current arrangements used in supporting a resource and if the company will use the resources properly.

. Currently threat of substitutes is low, but with new technologies possibility for substitutes is high in the future

Coca cola is the largest beverage company in the world with over 550 brand names. Coca cola’s product include various brands that supply carbonated beverages, diet / low calorie soft drinks, water, teas, juices and energy drinks. Coca cola is a universal company, serving geographic regions all across the world. Coca cola’s area of distinct advantage is in its unmatched globalization, thus making it the biggest selling soft drink in the history, as well as the best known brand in the world.

By definition, it is obvious that resource means anything which can provide a certain advantage to the firm or can also act as its weakness. They can be of tangible or intangible nature and can be related to the firm on semi-permanent basis. Resources can be brand names, in-house knowledge of technology, employment of skilled personnel, trade contacts, machinery, efficient procedures, capital, etc. The nature of a firm with respect to the perfect competition determines how it will react to the availability of the certain resources e.g. a firm having monopolistic status in an industry will exhibit a different behavior as compared to the firms in a perfect competition.

There also Internal factors which need to be considered, that is which involves directly to an organization such as: