PESTEL Analysis of Coca Cola Products

PESTEL Analysis of Coca Cola Products

Coca Cola is a continental company that is located all over the world in so many countries. It is well known for the production of soft drinks that are processed in various industries. The company has to follow regulations and technological advancements to ensure that the services that they offer are in line with the expectations of the public and the countries that they exist in as a whole. PESTEL analysis is the analysis that is conducted on a specific service or a product to come up with the external factors that Coca Cola has to adhere to for swift continuity. The analysis composes of Political factors, Economic factors, Social factors, Technological factors, and Legal factors. There can be added the environmental factors (HABIBA 195).

• Political factors

The political factors of Coca Cola are based on the requirements that are set by the Food and Drugs Association. These include rules and regulations that the association has offered for the company to put the special drinks provided in stores. The Coca Cola has to account for any possibility of laws changes and adjust to the requirements that include paying of taxes. The political factors aim to ensure that the products that Coca Cola produces are not harmful to the customer’s health.

• Economic factors

The economic factors are based on each country that gets access to the company’s drinks. The difference in cultures and customs brings about the gap that exists economically in various countries. The company keeps eying on each economy, basing their views on inflation rates of the states and the income of consumers. The economic factors are reached to realize the price of the products and attain economic growth.

• Social factors

Social factors are the general beliefs and attitudes that people in various countries have towards the drinks produced by Coca Cola. Most of the countries that receive the services are cultured. Therefore the company adjusts on the flavors production to appeal to its customers. An example, in America, their drinks are based on the health of people. The company concentrates on the health assurance of people. It intends to satisfy the social factors of each country (HABIBA, 196).

• Technological factors

The advancement in technology has benefitted Coca Cola in the production of machinery that manufactures a good number of soft drinks. Some of the mechanisms in Britain are of high quality promising timely delivery of the drinks. The technology has enabled Coca Cola to connect with new customers worldwide. Some of the techniques that the company uses are the branding of customer’s names on the cans. These create increased markets in various countries.

• Legal factors

The company promises and does follow the legal requirements of its consumers, beginning with the health and safety measures assurance to do legal activities.

• Environmental factors

Environmental factors relate to the climatic conditions that vary in various places. The company experienced problems in water that are used in the production of soft drinks. The issue of water affects the company leading to intense competition from rival companies like Pepsi. On the other hand, the humid climate favors the company because many people will prefer taking drinks to cool down their temperature. Therefore Coca Cola should produce based on environmental factors.

Part 2

In the line of features of drinks produced, Coca Cola provides a variety of drinks that are branded in different ways based on consumer expectations. The products are manufactured in different brands because of the taste and preferences that people have. The young will prefer specific drinks, the middle-aged their own and the old too. There are a good number of benefits that are realized by Coca-Cola, to begin with, is the profit realization. The company can generate a lot of funds from the drinks projects. There is an increased number of customers because the drinks are meant for a particular target market; hence, it satisfies customers’ tastes and preferences. I choose Coca Cola drinks in Vietnam because a lot of people prefer their various types of drinks, and it’s the most sold product in Vietnam.