Coca-Cola (Japan) Company

Résumé du document

In 1957, Coca-Cola Japan Company (CCJC) was established. The company has become a major player in the Japanese beverage industry. Despite the fact that Coca-Cola is an American company, many of its products have become very popular in the traditional Japanese culture. SWOT analysis will be used to analyze the current situation in which CCJC operates.

Extraits

[...] This opportunity cost could quite possibly surpass the amount of money required to launch a product. Also, if CCJC were to postpone its entrance, the market may mature or competition could become so fierce that it wouldn't be possible to gain any market share. Coca-Cola is a very strong brand with successful marketing strategies outside of the general cola market, for instance in fruit drinks and coffee. Since CCJC is known for its innovation in beverages, not entering a growing sector would be inconsistent with company philosophy. [...]

[...] SWOT Analysis Strengths Coca-Cola Japan has many strong points. When the company first came to Japan, there were many strict trade regulations that forced CCJC to focus on making local connections. This has translated into one of the biggest strengths for the company. CCJC has formed a very strong network of strategic alliances with independent Japanese bottlers. These alliances create a distribution system composed of companies that are familiar with the local markets. Utilizing these alliances has helped CCJC to gain consumer confidence, and allows them to penetrate a very large market. [...]

[...] It is safe to assume that older Japanese consumers may shy away from the company, in the same manner in which older Americans usually stick to their preferred national brands. Because of this tendency, a large portion of the beverage market may hesitate before buying a Coca-Cola product. Finally, CCJC has very little market share in the drink category of the Japanese beverage market. Although the company holds strong in the cola and non-cola carbonated beverages, they have little market share in the remaining segments. This market includes beverages such as canned teas. Opportunities Coca-Cola is currently faced with many opportunities in the Japanese beverage industry. [...]

[...] One of the largest opportunities facing the beverage market is the health trend in Japanese culture. Many people are switching to lower calorie beverages and health drinks. Specifically, the ready-to-drink tea market has seen significant growth. Currently, teas only make up nine percent of the entire beverage industry. From this, we can assume that the product is still in the growth stage, and will continue to provide profits to competing companies that are in the market. Ito En Ltd. was the first company to introduce canned tea in Japan, and has enjoyed its success. [...]

[...] Secondly, CCJC operates in a very competitive market. Currently, there are around one thousand new products introduced each year. Any new product would have to scrap for the consumer's attention. It would be a waste of capital to create a product, and have it lost in the crowd of new products hitting the market. Just as creating a new product would be a threat; not entering a growing market could hurt CCJC's relationships with its bottlers. Georgia, CCJC's canned coffee, was a late entrant into the popular canned coffee market. [...]