Ch. 4:Exploring the External Environment: Macro and Industry Dynamics

Chapter 4 takes a look at the external factors that affect a firm and aspects that come into play. It is very important for a firm to understand the environment they are in and are able to adapt to change . Chapter 4 went into great detail about competition and they way firms should analyze this factor .Coca Cola is a leader in the beverage industry but competition in this industry is very high. Their biggest competitors are PepsiCo and Nestle,and they also compete with many local firms. Some of the main competitive factors include pricing,advertising,product innovation,and a number of other things. Coca Cola does have a number of competitive  strengths which are having a high level of consumer acceptance,unique marketing capabilities,and a worldwide network of bottlers/distributors. On the other hand, Coca Cola is faced with some challenges with strong competitors in some parts of the world and powerful buyers with concentrated retail sectors .