Globalization Conditions that Impact Finance in Coca Cola Essay Example

frequent consumption of the company’s products, and this affects negatively the company’s finance. Another weakness is that only teenagers subscribe to the company’s products. If the company’s products were popular among the elderly population, this would have a positive impact on Coca Cola finance.

The consumer’s need for healthy drinks offers Coca Cola Company a chance to venture into the product. Since there is a raising concern regarding the type of foods and drinks people eat, this should motivate the company to start producing healthy drinks and foods to increase their financial position. The presence of different cultures around the world should also influence the company to come up with drinks that appeal to these different cultures.

Three main threats include health concerns, presence of substitutes, and the purchasing power of consumers. Firstly, there are continued campaigns held by health organizations around the world for people to embrace healthy living. Thus, this is a threat to Coca Cola’s products because most of its products are not healthy drinks. Secondly, the consumers’ purchasing power is a threat to the company because of the economic trends. The presence of unpredicted economical downturns affects the consumers’ purchasing power significantly and, in turn, the Coca Cola Company financial standing. Lastly, presence of substitutes forms a threat to the Coca Cola Company. According to research, substitutes such as tea, coffee, hot chocolate, juice, and milk make consumers not to be accustomed to soft drinks.

In conclusion, the Coca Cola Company has a rich history since its formation, and it is ranked among the top global companies. The company’s SWOT analysis indicates that the consumer’s identification with its products contributes to its financial success.

People’s consciousness about healthy living acts as a threat to the company because many of its products will lack market. Thus, the company should consider venturing into the production of healthy drinks and foods.