Explore the Reasons for Coca-Cola’s High-profit Margins

DOI

10.2991/aebmr.k.220307.234How to use a DOI?

Keywords

Coca-Cola; Beverages; High profitability; Profit margin

Abstract

This paper explores the reasons for Coca-Cola’s high profitability, which have essential enlightenment and reference significance to other companies in the beverage industry. The industry analysis illustrates the current condition of the beverage industry, especially under the adverse impact of the COVID-19. Then the corporate strategy analysis, which concentrates on product, marketing, cost, supply chain strategy and the influence of the strategic acquisitions, is applied to analyze the special and unique process of Coca-Cola company. And the financial analysis, including horizontal analysis and financial ratio analysis, evaluates Coca-Cola’s high profitability in quantity through various financial ratios by using the data in the recent three years. Based on the comprehensive analysis focusing on the differences between Coca-Cola and other enterprises from the perspectives of revenue and cost, this paper finally concludes that the reasons for Coca-Cola’s exceptionally high profitability are that the company has excellent development strategy to boost revenue and cost control strategy to save costs.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Qianhao Gao
AU  - Shihui Geng
AU  - Yuke Shi
AU  - Shuya Zhao
PY  - 2022
DA  - 2022/03/26
TI  - Explore the Reasons for Coca-Cola’s High-profit Margins
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1430
EP  - 1436
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.234
DO  - 10.2991/aebmr.k.220307.234
ID  - Gao2022
ER  -