Categories: Strategy

EFE Matrix of Coca Cola Company

The coca cola company was founded in 1886 and it is based on the industry of soft drinks. The company was first started or the origin of the company was United States. The production of the concentrate is sold by the company which is further sold by the company through the licensed bottles of the coca cola. The company has the very strong diversified product portfolio which attracts the interest of the customers. The different flavors of the product are produced by the company like cola lemon, cola lemon lime, cola raspberry, cola lime, cola green tea and cola orange etc.

Coca Cola External Factor Evaluation Matrix (EFE Matrix)

External Strategic Factor	Weight	Rating	Weighted Score	Comments
OPPORTUNITIES
Strong and diversified product	0.13	4	0.52	Due to the strong and diversified product portfolio the company is not affected by the any new invention in the market.
Packaging	0.08	4	0.32	The arrangements made by the company relating to the cola packaging are most advantageous for the company for enhancement in the whole world.
The acceptance of the new projects in the company	0.03	4	0.12	The acceptance of the new projects in the company has been stared in the industrial level that increases the demand for the company’s product.
New technology	0.14	4	0.56	New technology should be introduced by the company in order to improve the performance and efficiency of the work.
Niche market could be focused.	0.05	3	0.15	The company can focus on the niche areas of the market that generates and improves the sales of the products within the company.
Advertisement of unpopular products	0.03	2	0.06	There is an opportunity for the coca cola company to advertise its product that is not much popular among the customers or the people and it is beneficial for the company to stable their low profit generating products.
Gap between competitors	0.04	2	0.08	There is the great opportunity for the company to overcome the gap between them and their competitors.
Great number of successful brands	0.14	3	0.42	The coca cola company has lots of brands that continue and pursue it to the great success.
THREATS
Health conscious people	0.04	4	0.16	Although the coca cola company is attaining almost about 40 % control over the entire beverage market but due to the factor of health conscious people attitude the company can be affected badly and affects the sales of the company.
The factor of lawsuits	0.06	4	0.24	The factor of lawsuits is also the threat for the company that causes decline in the wealth and popularity and also affects the sales of the company.
Falters showing the unhealthy side of the product	0.09	3	0.27	The success and sales of the coca cola company were threaten by the falters showing the unhealthy side of the product and also the health minister take action as the threat.
Competitors (Pepsi)	0.07	4	0.28	The major threat for the company is its competitor especially Pepsi which is selling most similar product same as the coca cola and also the various sorts of the branded juices, coffee and milk are threat for the company.
Economical changes	0.08	3	0.24	Economical changes and impacts are also playing adverse role in the success of the company and the growth that is among the sales.
Increase in demand of substitutes.	0.02	3	0.06	The increase in the demand of the production of the non carbonated products like juices and nectars etc can affects the growth of the company.
Total Weighted Score	1		3.48	The large numbers of substitutes regarding the company’s product are also available in the market that reduces the demand.

Conclusion

Based on the above calculations it has been concluded that the company’s Total Weighted Score is 3.48 which shows that the company is hugely successful in utilizing its opportunities and minimizing the threats around it.