Evaluation of the Acquisition of BodyArmor Impacts on the Growth of Coca-Cola

Abstract

As people become increasingly concerned with their health, the market for sports beverages is rapidly expanding. Beverages are evolved into more practical vitamin and food supplement items. This essay intends to explore whether the acquisition may increase Coca-Cola’s profitability by entering the sports drink industry. Due to the magnitude of this deal on a worldwide scale, this article mostly used secondary research as research approach. BodyArmor and Coca-Cola's finances are first being analyzed to access the deal's premium. Meanwhile, the united conglomerate's future development potential is analyzed using the 4Ps: price, product, location, and promotion. Overall, a cost-benefit analysis is performed to see whether this acquisition transaction will actually allow Coca-Cola to develop over time by entering the sport drink industry. The study suggests that the acquisition provides a lot of diversification benefits in terms of the synergy formed.