Coca Cola Amatil is among the world’s largest bottlers. The co. is owned by Coca Cola Co., HSBC. The co.’s origin is of Australia. It was originated in 1904 as a tobacco co. British tobacco. For the first time, it was listed on stock exchange of Australia in the year of 1972. The primary products of the co. were soft drinks and snacks. It expanded its bottling business operations worldwide by purchasing a Coca Cola Bottling plant in Australia and Europe in 1982. They further expanded their business to Fiji and New Zealand in 1982 and 1987 respectively.
Right now they sell or provide the non-alcoholic products which are ready to drink. They operate as one of the five largest operators in the Asia Pacific region. Their main operations are in six major countries. The countries are like Australia, New Zealand, Fiji, Samoa, Papua New Guinea and Indonesia.
It is a Public Co. which mainly serves beverages in these countries. The co. is headed by David Gonski who is the Chairman of the co. with Alison Watkins who is the Managing Director of the Co. The headquarters of CCA are in Australia named as Coca Cola Place North Sydney, New South Wales, Australia. They mainly focus on the manufacturing and distribution of the beverages. (Cocal Cola- About Us, 2018)
The revenues earned by the co. as provided secondary data are A$ 5.12 billion till 2014. The operating income of the co. was A$ 502.8 million for the year of 2014. Meanwhile the Net Income counts to A$ 79.9 Million. The numbers of employees work for CCA are 15,000 and more. (Success story- Coca Cola, 2018)
Introduction
The CCA operates in mainly six countries right now, including Australia and New Zealand (Our History, 2018). They are operating, basically since 1904, more than 100 years (Our History, 2018). They began their operations as British Tobacco co. in 1904. During the time period of 2nd world war, the Coco Cola entered Australia with the drink Coca Cola (Our History, 2018). They purchased Coca Cola Bottlers Pvt. Ltd. in Perth. In 1977 it becomes AMATIL, Allied Manufacturing and Trade Industries Limited (Our History, 2018). It was the time period of 1986 to 1989 when they acquired franchises across Australia, Fiji and Wellington. (Our History, 2018)
Board of directors of CCA includes Ilana Atlas, Alison Watkins, John Borghetti, Mark Jhonson, Paul O’Sullivan and Krishnakumar Thirumalai. They all are very skilled and unique in their work style. The reports presented by all of them on the performance of the CCA in 2017 have been positive so far. (Annual Reports)
Products of CCA:
They provide a huge range of products to the general public including the Non Alcoholic and Alcoholic products. The products are as follows:
Non Alcoholic: Coca Cola, Diet Coca Cola, Coca Cola Zero, Sprite, Sprite Zero, Fanta, Fanta Zero, Lift, Kirks, Mount Franklin, Deep Spring, Fuze Tea, Zico etc(Our Brands, 2018).
Energy Drinks: Mother, Mother (Sugar Free), Monster, Monster Zero
Alcoholic: Teacher’s, Laphroaig, Ardmore, Kilbeggan, Connemara, Canadian Club, Jim Beam, Jim Beam Devil’s Cut, Makers and Maker’s Mark etc(Our Brands, 2018).
Hot Beverages: Fix Coffee, Grinders, Romanza, Taboe, Simplici Tea (Many Flavours)
Food: Peaches, Australian Peaches, Bean Pot, Perfect Fruit, Aussie Peaches, Provital Apple and Peach, Fruit Salad, Pears and Apricot etc. (Our Brands, 2018)
Targeted Customer of CCA:
If we talk about the customers of the CCA, the main customer group is the youngsters and teenagers. The old age people also prefer CCA products but they mostly prefer the alcoholic products. Teenagers and youngsters prefer every product of the CCA. The energy drinks of the CCA are being preferred by the sportsperson, like players of rugby and cricket etc. The young boys and girls who have just started their career use more energy drinks.
CCA provides taste as well as hygiene in their products. There are some non-alcoholic products which are fulfilling the taste needs of the public and the quality of the CCA is not compromising at all.
Mission and vision of CCA:
The CCA mainly focuses on the customer satisfaction (Sustainability Report, 2018). They have the slogan that every day is day when they try to create number of happy moments for the customers of the CCA (Sustainability Report, 2018). They say that they work for their customer by providing plenty of brands of products (Sustainability Report, 2018). They focus more on having unrivalled shared values (Sustainability Report, 2018). They wanted to drive the passionate and inclusive culture (Sustainability Report, 2018). They wanted to provide the world class quality to their customers. (Sustainability Report, 2018)
They also have the vision of contributing to the community by any means. And foremost, for the investors, they try to earn huge returns so that the interest of the investors can also be taken care in the CCA (Our vision and values, 2018).
Their values say that they are very much frank and straightforward for their actions (Our vision and values, 2018). They take the initiative of building the great world for the organization (Our vision and values, 2018). The above said vision and the mission of the CCA helps them to join together to achieve the ultimate goal of the organization (Our vision and values, 2018). The employees of the CCA feel motivated on it (Our vision and values, 2018).
Two Disruptive Technologies:
Business going online: With the passage of time, the world class business houses are now going online and so is the need of the hour for the CCA too. They have to be online on strong basis. They cannot be reluctant to it. They need to focus more on it. The digital marketing is being the major threat now days in competitive world. The major competitors of the CCA in Australia or anywhere are PepsiCo.
Technology has put impact upon first of all the needs of the customers. Now they use technology for having the home delivery of the food products. The main reason for this is that they have now the option of home delivery which is being provided on large scales by the different business houses. The distribution costs of the companies may go higher but other costs of outlets are decreasing day by day for them. Online food and beverage distribution is being cheaper. The business which makes early entry in the online market enjoys the lion’s share of the market for long run (O’Neill, 2015).
As compared to its competitors, i.e. is PepsiCo, the CCA’s costs of operations are higher (O’Neill, 2015). The PepsiCo has cheaper sources of distribution. This thing is putting impact upon the prices of the delivery of the CCA and then on the revenue of the CCA (O’Neill, 2015).
SHARE PERFORMANCE
Comparison of Five-Year Cumulative Total Return
Coca-Cola Enterprises, Inc. S;P 500 Comp Peer Group
(Coca Cola Enterprises at a glance)
The customers are shifting from tastier products to healthier products (O’Neill, 2015). For tackling with this change of need, CCA offered some products like juice, energy drinks i.e. Coke Life, Zero and sugar free products. In the same context, they launched one product named as Barista Bros (O’Neill, 2015). But the records and facts are saying that it’s not being so successful product so far in Australia. This is being the most threat full thing for CCA now that they are not being in position, up to some extent to tackle the change of the needs of the customer. (O’Neill, 2015)
Technology has impact upon R;D, Work Culture and Supply Chain: This is the second disruptive change so far has been seen in the market which has negative impact upon the business of the various companies and so is on the business of CCA (Coca-Cola Amatil Limited SWOT Analysis / Matrix ). As per the facts, the research and development needs huge investments to know the new challenges upcoming in the market (Coca-Cola Amatil Limited SWOT Analysis / Matrix ). But as per the records and facts, the investments which are being made by the CCA in research and development sector are lower than the other competitors (Coca-Cola Amatil Limited SWOT Analysis / Matrix ). This thing will put huge impact on the survival of the CCA in the market as it is providing the window to the other competitors in the market who has better research and development plans and investments (Coca-Cola Amatil Limited SWOT Analysis / Matrix ). This thing has resulted in having the gap between the products being sold by the CCA and the demands of the customer. (Coca-Cola Amatil Limited SWOT Analysis / Matrix )
The impact of Technology on Culture: The Technology has put impact upon the work culture of the business of various co.’s. The world market is the game of being integrated with each other, having collaborations with each other. But due to changes in the technology, its being difficult for some of the houses, like for CCA too, to tackle with the different organization who are having different work culture than CCA.
Impact on supply chain: The marketing of the products has taken new heights. The modes of the marketing have changed and so are the change has been seen in the supply chain mechanism. New technology will cut the costs of supply chain if followed, however massive changes are required in the working model of the business to adopt this technical changes of supply chain. The home delivery mechanism completely changes the production scales as it increases the demands, also the focus of management will be shifted to home delivery supply chain rather being focused on outlets supply chain. So this change in the technology is hitting hard for CCA right now. As they have to face the competition in the market in home delivery service too. The cost is another challenge to be managed in the supply chain.
Impact of Disruptive technology:
With the change in the technology, the impact is always integrated with the change. So in this case the change in the change in the technology will affect the CCA in the following ways as discussed below:
a. Impact on business model: The Business model of the CCA has to be completely changed. When they have to make an adjustment for the new segment i.e. online business of their products and home delivery, it affects the whole business existing model. The new business policy is needed to be designed, the cost structure has to be altered, and the channels of distribution have to be altered and in fact have to be increased. So it will increase the overall costs of the business of CCA.
b. Quick response: The online market provides the quick response to the search of the customers. And the delivery of the products should also be the quickest one. That is the only way to survive in the online marketing. So the technical system will put pressure on CCA and this may be converted into threat if they do not take care of the real time responses to the customers.
c. Technology Coverage area: The technology has the disadvantage that it can take you anywhere; this is disadvantage for business because it is costly for business sometimes to reach the wider area. So CCA has to define their reach through online business that how much range they will cover in online selling of products and up to which area they will provide the home delivery of the products (Robots in the food industry, 2015). If they neglect any area, losing of goodwill in that area may be another threat for them (Robots in the food industry, 2015).
d. Impact on Supply chain: The existing supply chain of the business will be affected. The existing model of the business needed to change accordingly so that the supply chain can be altered as per the new needs of the online business (Robots in the food industry, 2015). New distribution channels are required to be set for providing the home delivery of the product. The number of home delivery channels or stations has to be increased and set up in those areas where they don’t have it (Robots in the food industry, 2015).
e. Alteration of the menu: The online market has the beautiful advantage to customers is that they get variety of products for single search and for single category (Robots in the food industry, 2015). So the same thing has to be provided by the CCA (Robots in the food industry, 2015). They have to personalize the categories of the products to be provided to the customers so that every product must be different from the next in the display and must be unique in it (Robots in the food industry, 2015). So the menu may increase or botheration of the increasing the menu may increase too (Robots in the food industry, 2015). Also the needs of the different people will be different. Suggestions and the recommendations of the customers needed to be taken care. If the recommended changes for the customers are not made, then they may lose the market (Robots in the food industry, 2015).
f. Research and development: The needs of the customer have changed because of the change in the technology but before providing them products, CCA has to know these needs of them (Robots in the food industry, 2015). So they have to put great efforts on their research to know more about the new technical disruptive changes in the market (Robots in the food industry, 2015). The groups of the customers have to be studied as the different groups have different needs (Robots in the food industry, 2015). The youngsters prefer the soft drinks and the adults prefer juice like products, tea coffee etc., so the needs of the different customers needed to be studied (Robots in the food industry, 2015).
g. Impact of culture: With the advancement of technology, coverage of the area has gone wider and so is the coverage of the culture (Robots in the food industry, 2015). Now new culture is becoming the part of the CCA (Robots in the food industry, 2015). So they have to tackle with the new culture of the new customer they will get through online business (Robots in the food industry, 2015). The collaborations may be the other reason. If they want to grow in that area where don’t have much of the goodwill, they have to share their market with the existing organization (Robots in the food industry, 2015). So the existing organization may have different culture, adjustment is required to be made over there (Robots in the food industry, 2015).
h. Personalization of the Outlets: The personalization of the outlets of the CCA at various places also needed to be made. They can start the home delivery from their far away outlets to cover the far away areas. So before doing that, they need to make the setup accordingly (Robots in the food industry, 2015).
i. Automatic mechanism: For making the online marketing smooth and quick, automatic mechanism needed to be followed. Also the robotic world is being integrated with the business. Especially in food industry, the robotic world as made it’s knocking. So with that, the extra costs of the staff and labor will be cut down but it will also create the unemployment in the industry. This is not good for the economy. Cost cutting will be the positive point but the complexity of the business model and change of the business model is challenge for the business houses and for CCA too (Robots in the food industry, 2015).
