Challenges of Coca-Cola

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Challenges of Coca-Cola

Assalamualaikum everyone, I’m sabrina saila and now I am going to talk


about the challenges that coca cola company is facing.
So as we can see, the first challenge is
Health Concern:
Coca-Cola is the largest producer of carbonated beverage. As we know, carbonated
drinks contain a lot of sugar. So, these drinks lead to a large amount of sugar
consumption which is not good for health. It can cause diabetes and obesity.
Recent studies have added evidence of a link between sugary drinks and diabetes,
and appear to confirm the negative effects of these drinks on brain, kidney, and
liver activity.
Less Diversity:
Coca-Cola relies too much on the carbonated drink segment. Coca-Cola should
work on the diversity of the product. the company will be able to take care their
customers preference with variety of product line. This will help to expand their
business more and they will be able to gain more customers all around the world.
Scarcity and Usage of water:
Water is the prime ingredient for carbonated drinks. The company knows and
understand that the water quality, sustainability and availability is one of the most
important barriers for the business. Around 1.9 billion servings of Coca-Cola
products are consumed every day worldwide and more than 300 billion liters of
water must be pumped through 863 bottling plants to deliver carbonated beverages
to the consumers. As climate change threatens global water security and within the
next 10 years an estimated 2.8 billion people will be at risk of encountering water
shortages, it is a big challenge for Coca-Cola to maintain water usage. (YOOSEJH)
The company can develop some strategies to cope up with this issue.
Strategies for balancing water use include improving production to reduce water
waste, plant-level innovations such as recycling treated wastewater in boilers,
evaporators and chillers, and improving local infrastructure through partnerships
with governments and NGOs for financing and build water treatment facilities,
install rainwater harvesting structures, construct check dams, and restore water to
natural reservoirs.
Plastic waste
Coca-Cola was named world’s most polluting brand in plastic waste third time in a
row in 2020. Plastic pollution is a climate, health and social justice issue. If the
plastic pollution increases then the society will be locked into high emissions. To
solve this matter the company can take some steps which are:
1. Educating their consumers on the need and practice of re-cycling single use of
plastic.
2. Secondly, The company can develop an infrastructure in which re-cycling will
be easy for the consumers.
3. Lastly, Minimize the use of plastic and develop alternative materials to use
instead of plastic.
Too many rivalries:
There are many direct and indirect rivals of Coca-Cola. Pepsi is well known among
them. Other brands along with Pepsi that can damage Coca-Cola’s market position
are Nescafe, Red bull, Starbucks and some alcoholic drink makers. To cope up
with this issue, Coca-Cola should focus on improving and maintaining product
quality, targeted market, proper product promoting and appropriate pricing
strategy.
Now I would like to request my next group member to continue the rest of the
presentation.

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