Political and Legal Factors
The rules and regulations of the state on food goods may directly affect Coca-Cola. Countries may have different versions of these laws. Coca-Cola sales were formerly prohibited in Burma as a result of trade restrictions between the US and that country. Once almost 60 years, the transaction finally got forward in 2012 after the penalty was lifted. Because of the political climate in Cuba and North Korea, the product still cannot be purchased or sold in these two nations. The ongoing trade spat between the United States, and China has had a significant influence on the cost of Coca-Cola canned goods.
Coca-Cola has had issues in the past because of the amount of caffeine in its drinks in various nations. Additionally, the business was charged with paying poor salaries and treating workers improperly, which sparked several complaints from labor groups. Its workers have filed lawsuits alleging racial discrimination. Despite being apple and grape juice, one of its products was mistakenly labeled as pomegranate and blueberry juice, which has caused it great worry. For the corporation, issues with packaging, water use, and air pollution have been major concerns.
Economic Factors
With a nearly 50% industry share in carbonated beverages, Coca-Cola rules the sector. Notwithstanding all the price increases brought on by the levies, it claimed an 8% rise in net revenue in the third quarter of the 2021 fiscal year (Coca-Cola Company, 2022). However, the purchase of a firm like Chi Ltd. had a negative influence on profitability. The corporation is in favor of the new trade deal between the United States, Mexico, and Canada since it would promote fair and free commerce between the countries. Customers now choose low-calorie beverages over drinks with added sugar.
Social Factors
Coca-Cola has consistently launched social media efforts to engage with its customers. It started the hugely popular #shareacoke promotion in 2014. People were urged to look for bottles bearing names they identify with, offer them to family or friends, and record the experience online using the hashtag sharing a coke. Buyers may also personalize the name on the bottles at the web Coca-Cola store. The brand established a personal connection with the customer. The corporation updated all of its social media accounts in an effort to project a more upbeat brand image.
Technological Factors
In its product range, the Coca-Cola business has always experimented. It includes the first frozen beverage that is ready to consume in Japan. The organization has a culture that values innovation. Customers are encouraged to participate in activities online and link them to Coca-Cola brands. It keeps itself youthful, modern, and relevant by utilizing social networking technologies (Coca-Cola Company, 2022).. The business offers a freestyle dispenser that lets customers mix and matches different beverages using a computer-like interface. Additionally, it stores data for market research, which the business will utilize to comprehend consumer tastes and preferences.
Possible Complications
In case of sudden advancement in technology, it does not seem that the company would have any issues. It has the necessary financial capacity to turn this challenge into an opportunity. The same is about enhanced economic stability – the corporation possesses significant supply chains and production capacities to adapt positively to such a condition. However, social unrest can be a pressing problem. The company founds its policy on interaction with its customers, and any negative shifts in this vein are considerable. A response to this challenge could be the arrangement of a new promotional campaign and the reorganization of distribution channels.
Reference
Coca-Cola Company. (2022). 2021 annual report. Web.