External and Internal Environments Research Paper - 5

External and Internal Environments - Research Paper Example The issues related to this segment include obesity and health concerns and product quality concerns, including concerns related to the ingredients of the beverages (Coca-Cola Annual Report 2013). Another segment is the global segment, as the company operates globally, and is planning to expand its operations in developing and emerging markets. The company might fail its global growth strategy because of adverse economic and political conditions, different cultural attributes, limited purchasing power or inability to acquire local bottling companies (Coca-Cola Annual Report 2013). In the soft drink industry, fierce rivalry between dominant producers Coca-Cola and Pepsi Co and the threat of substitution are strong, while the threat of entry, the bargaining power of buyers and the power of suppliers are more benign. The Coca-Cola Company is facing fierce industry competition, and in order to keep its competitive advantage, the company has created and implemented integrated marketing programs, aimed to increase consumers’ awareness and raise appeal for the Coca-Cola’s brands (Coca-Cola Annual Report 2012). Moreover, in order to raise customer preference for Coca-Cola’s brands, the company has been undertaking some joint brand-building initiatives with the customers (Coca-Cola Annual Report 2012). As the threat of substitution is high in the soft drink industry as the popularity of tea, coffee and other non-alcoholic beverages is growing, the Coca-Cola has also diversified its brand portfolio with new products, substitutes for soft drinks, such as bottled waters (Dasani, Ciel), sport drinks (Powerrade), juices (Simply Orange, Del Valle), vitamin water and smartwater (Glacà ©au), tea (Fuze tea, organic bottled tea Honest Tea), etc. (Coca-Cola Company, n.d.). With the same two forces in mind, high industry rivalry and threat of substitution, it is possible to suggest that the Coca-Cola Company might introduce coffee drinks and more healthy (sugar