Coca Cola External Environmental Factors

During the st arraygic marketing management process, there be many external forces that any company moldiness be alive(predicate)(predicate) of in order to be profitcapable. These very strategic grammatical constituents to be considered sum in the form of engineering science trends, sparing and government trends, consumer trends and innovations. It is very important to be discern aware of every(prenominal) of the potential opportunities and threats that may arise from these trends. I believe that for Coca-Cola, there are external forces in all of these areas that they must be aware of and incorporate into their planning if they are to continue to be successful.When it comes to technology, in recent years there are many emerging trends that I feel that Coca-Cola could use to their good. The popularity of operate frequently(prenominal) as chirrup and Facebook may give Coca-Cola the opportunity to spread the word about their products to territories that harbort yet been r eached by their competitors. Since the majority of good deal use these services all over the world, we feel that it is a great place for them to advertise.While it is inactive very important to claim advertisements on television, more than and more stack are utilize the internet, and we feel that by collaborating with internet companies, they would be able to increase their profits. In addition to the increased use of the internet, an opposite technology trend that Coca-Cola should be aware of is the production of bio-degradable bottles. Todays plastic bottles are very bad for the environment and people are aware of this. Until recently, there was only technology to produce plastic that was made from petroleum.Now though, in the year 2010, there is technology to produce plastic that is made from plants. This plastic, in any case known as PLA or polylactide, emits fewer greenhouse gases, uses less muscle than other plastic bottles and is also recyclable and compostable. We b elieve that since the environment is such(prenominal) a high priority in everyones minds, they should take advantage of this technological development. Economic and Government trends are an extremely important class of the external environment. Since consumers are directly affected by the status of n economy, a company should always be aware of the economic conditions in the countries in which they operate. Currently, all over the world, we are dealing with a recession. The unemployment rate is very high, and as a result, consumers begin decreased buying power. When consumers have less income, the first thing that they stop buying are prodigality goods. In my opinion, speed of light is a luxury item and not a necessity. I feel that if Coca-Cola wants to continue to be successful in the on-going economic conditions, they must begin to produce goods that people must buy. An grammatical case of such a product would be dairy products, like milk.While a consumer who has a strict bu dget may skip purchasing Coke, they go out not skip on purchasing milk. While technological and economic factors are extremely important to Coca-Cola, we feel that currently, the most important factor that needs to be addressed are changing consumer trends. Today, consumers are nice more and more health conscious. When people purchase a fare or drink, we think that they would ideally prefer something that has some health benefits to it. Coke has always been criticized for being bad for your health due to the provender coloring, carbonation and high-fructose clavus syrup.While we dont believe that it is likely that Coca-Cola will lose much business to other cola competitors such as Pepsi, I do feel that they will lose business to companies that are producing healthy alternatives to cola, such as fruit drinks. I feel that Coca-Cola should be innovative and perhaps consider changing some of the ingredients in Coke, such as using natural sugar instead of corn syrup and natural sou rces of food coloring rather than chemicals. Another very important consumer trend that should be noticed by Coca-Cola is the increasing population of Hispanics in the United States.Hispanics reserve up a very large part of the population, and Coke isnt marketed specifically to this ethnic group. We feel that if Coca-Cola marketed more directly to Hispanics, they would increase their profit. Lastly, a very important consumer trend is being green. As previously mentioned, consumers in the United States, as well as the majority of other countries in the world, are very concerned with the effects of pollution and the ecumenic well being of the planet. Coca-Colas biggest competition is Pepsi. In the past year, Pepsi has introduced the Pepsi freshen attend. This program awards funding to people in America who have come up with great ideas on how they can improve their community. Some of the ideas that have been funded by Pepsi so far are making school buses more eco-friendly, growin g fresh produce at schools to fight childhood obesity and making buildings in cities more energy efficient. In 2010, the Pepsi Refresh Project will give away more than $20 million to people with similar ideas. Each month, Pepsi will accept up to 1,000 new ideas every month and will award up to $1. 3 million in grants to the ideas who have received the most votes by other consumers.We feel that this is a very effective way of bettering the world that we live in and that Coca-Cola should do something very similar. Pepsi has so far only implemented this program in the United States, so this gives Coca-Cola the opportunity to use this idea on a global scale, and extend the benefits to other countries. We feel that being green is a very important consumer trend, and if Coca-Cola used a similar program crossways the world, they would begin to develop an image where they have the environments topper interest at heart, and will gain the support of people all over the world as well as incre asing their profits.