PESTLE Analysis of Coca Cola

Coca Cola is a soft drink empire and serves customers around the world. To supply customers with their soda, they follow strict regulations, adhere to customer demands, and use the best technology available.

More information about the company is in this PESTLE analysis of Coca Cola.

Political factors

Coca Cola products are at the mercy of the FDA. They must meet regulations, given by the government, to put products on store shelves.

Changes in established laws may prevent Coca Cola from distributing drinks. Accounting, taxes, internal marketings, and changes in labor laws can affect Coca Cola in this way.

Economical factors

Coca Cola products are distributed to hundreds of countries. These countries have different customs, cultures, tastes, and desires. Coca Cola has changed and updated how it handles its products by creating new flavors to accommodate these customers.

They have $80+ billion worth of equity. The majority of that comes from the beverage industry. And their income (roughly 70%) is from countries outside the United States.

But people are looking for healthy alternative drinks. Coca Cola is making minimal efforts to move in that direction.

Social factors

Coca Cola distributes the majority of its products in cultured countries. And they meet the demands of these customers. In Japan, they created 30 alternative flavors to appeal to Japanese consumers. In China, they are making similar efforts.

But in America, people focus on their health. They’re swapping sugary drinks for waters and teas. Because these drinks are better for their health. Coca Cola needs to respond to these needs by creating a product the healthy American public will respond to.

Technological factors

Machinery have helped Coca Cola manufacture products in better and higher quantities. Coca Cola has factories in Britain with top of the name machinery to ensure fast delivery times and quality product development.

Coca Cola has used social media technology to connect with audiences. When they launched their name campaign — putting real names on their bottles — customers lined up to take photos of bottles with their name on it. These photos trended on social media sites like Facebook, providing social proof and encouraging Coca Cola sales.

Legal factors

Coca Cola retains all rights related to their business, including past and future products developed with a patented process.

Environmental factors

Coca Cola is affected by water accessibility. Water is necessary for soft drink development. But should something happen, like climate change, the company may be under fire.

This affects their competitor, Pepsi, as well. But since Coca Cola’s products are primarily soft drinks, with a water accessibility issue, the company will suffer losses.

Coca Cola has to adhere to environmental laws as they manufacture their products. If anything is amiss, it can affect how they distribute products — or stop production completely.

Additionally, they can take advantage of humid climates who would enjoy Coca Cola drinks as a means to cool down. This works well in developing countries where Coca Cola would have very little “premium” competition.

Image “Buvez Coca Cola” by Ioan Sameli is licensed under CC BY-SA 2.0