Coca Cola External Facto

Evaluation Matrix (EFE Matrix)

External Strategic
Factor
Weight Rating Weighted
Score
Comments
OPPORTUNITIES

Strong and
diversified product
0.13 4 0.52 Due to the strong and diversified product
portfolio the company is not affected by the any
new invention in the market.
Packaging 0.08 4 0.32 The arrangements made by the company
relating to the cola packaging are most
advantageous for the company for enhancement
in the whole world.
The acceptance of
the new projects in
the company
0.03 4 0.12 The acceptance of the new projects in the
company has been stared in the industrial level
that increases the demand for the companys
product.
New technology 0.14 4 0.56 New technology should be introduced by the
company in order to improve the performance
and efficiency of the work.
Niche market could
be focused.
0.05 3 0.15 The company can focus on the niche areas of
the market that generates and improves the
sales of the products within the company.
Advertisement of
unpopular products
0.03 2 0.06 There is an opportunity for the coca cola
company to advertise its product that is not
much popular among the customers or the
people and it is beneficial for the company to
stable their low profit generating products.
Gap between
competitors
0.04 2 0.08 There is the great opportunity for the company
to overcome the gap between them and their
competitors.
Great number of
successful brands
0.14 3 0.42 The coca cola company has lots of brands that
continue and pursue it to the great success.
THREATS

Health conscious
people
0.04 4 0.16 Although the coca cola company is attaining
almost about 40 % control over the entire
beverage market but due to the factor of health
conscious people attitude the company can be
affected badly and affects the sales of the
company.
The factor of
lawsuits
0.06 4 0.24 The factor of lawsuits is also the threat for the
company that causes decline in the wealth and
popularity and also affects the sales of the
company.
Falters showing the
unhealthy side of
the product
0.09 3 0.27 The success and sales of the coca cola company
were threaten by the falters showing the
unhealthy side of the product and also the
health minister take action as the threat.
Competitors (Pepsi) 0.07 4 0.28 The major threat for the company is its
competitor especially Pepsi which is selling
most similar product same as the coca cola and
also the various sorts of the branded juices,
coffee and milk are threat for the company.
Economical 0.08 3 0.24 Economical changes and impacts are also
playing adverse role in the success of the
changes company and the growth that is among the
sales.
Increase in demand
of substitutes.
0.02 3 0.06 The increase in the demand of the production of
the non carbonated products like juices and
nectars etc can affects the growth of the
company.
Total Weighted
Score
1 3.48 The large numbers of substitutes regarding the
companys product are also available in the
market that reduces the demand.
Conclusion
Based on the above calculations it has been concluded that the companys
Total Weighted Score is 3.48 which shows that the company is hugely
successful in utilizing its opportunities and minimizing the threats around it.