• Conduct a situation analysis: SWOT Matrix 
• strengths - what is the firm particularly good at? 
• weakness -what areas are in need of improvement 
• Opportunities- what trends in the marketplace could exploit
• Threats - who are re they more the new competitors entering the market?. How fast are they growing? Are they more innovative? 
• Firms have the means to exploit the trends because they have the resources and knowledge to exploit it 
•    coca cola strength - Strong marketing and advertising, strong brand, world's largest beverage company
• weakness - over reliance on carbonated drinks, lack of diversification, negative publicity
• Opportunities- Growth in beverage consumption, increased demand for bottled water, reduced price of production material
• Threats - Changing user demand for healthier ( competitor) drinks 
• imitation products- coke maintains strong marketing and advertising