Competitive dynamics
According to Shams (2016, p.179) argument, competitive dynamics refers to the set of responses and actions taken by all firms competing within a market. Coca Cola is the trailblazer in the beverage industry-leading by forty-five percent in the Australian market. Coca-Cola’s principal competitors include PepsiCo, Nudie foods Australian, Schweppes, Bundaberg, kirks, Saxby, Heinz, and Golden Circle Shams (2016, p.180). All these competitors are in the perfect industry hosting a stiff competition.
There are three significant challenges that Coca Cola faces in the Australian market. These include stiff competition from the perfect market, labels owned by supermarket chains, and price pressure from competitors such as PepsiCo Shams (2016, p.182). Evaluating these competitors and providing strategic recommendations to curb the challenges, the CompanyCompany conducted the SWOT, Porter’s five forces, and PEST analysis Shams (2016, p.185). The CompanyCompany fixed various competition challenges based on their Analysis recommendations.
Strengths after SWOT Analysis
According to Shams (2016, p.188), competitive merits changes based on the assets owned by the Company. These assets are either intangible or tangible. The enterprise has been a champion of the non-alcoholic drinks, Coca -Cola’s value chain in Australia utilizes multiple resources Shams (2016, p.188). Coca Cola has Marketing and finances, equipment and production, product patents, and skilled employees.
Financial Capital: Sparkling drinks are dropping their popularity. Users become aware of the sugar and calories contained in beverages produced by Coca Cola Company in Australia. Consumers opted to shift to other favorites as a result. The CompanyCompany funded various innovation to convince the market Shams (2016, p.189). Thus, controlling the competition created from reputation loss.
Physical Capital: This pertains to the Company’sCompany’s ownership in Australia, including distribution centers, telecommunications, and manufacturing sites. Coca-Cola leases and owns different offices for different purposes throughout Australia. These are the premises that none of Company’sCompany’s competitors could afford Shams (2016, p.194). Therefore, whenever competitors are detected, the CompanyCompany tried to flood the market supply in every corner of the country.
Opportunities
Coca-Cola Company depends on production modernization, branding, and conveying quality and worth beverages to customers around Australia. Coca Cola has experienced stable growth in revenues, which none of the competitors could afford. As Shukla and Kiridena (2016, p.700) argued, Coca Cola can rebuild and reexamine its strategy by differentiating market products through cementing its policy against its competitors.
PEST Analysis: Political, Economic, Social, and Technology
PEST analysis was a competitive dynamic evaluator who applied Coca-Cola in Australia to strengthen identified market gaps. The community in Australia witnessed an increase in obesity and diabetes among adults and children, Shukla and Kiridena (2016, p.701). The public drastically lost the product trust giving a gap for competitiveness. Coca-Cola innovated a Coke Zero to avoid cut the fast growth of preferred products.