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Coca cola strategy and structure
Coca-Cola business strategy
Coca-Cola business strategy
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revenue from the existing consumers by buying their products (Böhm, 2009).
Supply Chain Development
As we talked about earlier, Coca Cola is the biggest supply franchise in the world. Supply chain can boost the organization cost and operation. The business can have developments in these areas to improve their differentiation plan.
Threats
Raw Material Sourcing
H2O is a raw material that is important in the making of Coca Cola products. The drawback of the business is the alleged use of pesticides or the large use of water. A Shortage in water sources is one risks that the business is encountering today. This occurs because of global warm up around the globe that carries out the results to the water shortage.
By Altering Strategic Choices Coca Cola is enclosed with a number of strong points that can expand upon as the company changes their strategic choices. A few of the strengths to concentrate on is maintaining a predominant market share and prevalent supply of drinks. Another strength is a strong marketing and advertising plan, customer loyalty, and negotiating power amongst others. Coca-Cola’s strategic options have boundaries that revolves throughout its present status in the market.
Altering the
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With this information put into exercise, it is debatable that the business wants to benefit from environmental circumstances as it reduces numerous threats like water shortage in its attempts to change strategic preferences (Hill & Jones, 2014). It is obvious that there is a growth in drinking of bottled water, which gives an opportunity that the company can benefit from the process of altering its strategic plans. The Coca-Cola Vision and Mission is Influenced by Strategic
The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical idea has catapulted them into the much sought after position of number one.
Key success factors in the industry are a strong brand presence, maintaining customer loyalty as exploring new markets and distribution channels as well as offering a diversified product line. Implications of these factors are strong competition and dependency of company’s behavior and marketing strategies on competitors’ behavior. This is especially true for Coca-Cola and PepsiCo since their flagship products are very much alike in look and taste.
One of the Coca-Cola Company’s strongest strengths lies in its ability to conduct business on a global scale while maintaining a local approach, one of the most intelligent strategies thought up by the human resource department of Coca-Cola.
Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
... objects and customer regions. Do making a clear differentiation image between its soft drinks and bottled water. Because the consumers may believe that bottled water of Nestle sounds healthier than Coca-Cola brand since Nestle tend to emphasize their image on healthy food products. Then do market test for new taste, new packaging, or new innovation according to each regions, and especially for Europe, the company should launch the new one to replace Dasani image in order to seize their market shares. They may renew all nutrients and packaging. Finally Coca-Cola should continue its joint ventures with the regional companies in order to protect their products from barriers to entry both international trade restrictions and distribution channels. Furthermore, joint venture with local brand is a long term contract guarantee to make it easier for HOD to a specific region.
Considering individuals are becoming more health conscious it would be beneficial for Coca Cola to continue producing even more healthy products. Producing healthier drinks could potentially get their products back in schools. Researching into cheaper materials as well as environmentally friendly alternatives to plastic would be another recommendation. The main concern for Coca Cola is water supply. Without water Coca Cola would not be able to stay in business. It is recommended for Coca Cola to reduce the amount of water it uses. They have already begun a goal to improve water use. “Our 2020 goal is aggressive and builds on the 21.4% water efficiency improvement we’ve made since 2004. We expect to increasingly assess not just the quantity of the water used to grow our product ingredients, but the impact of that use as well” (Improving,
In India, Coca-Cola has been accused of instigating droughts since its carbonated and bottled water beverage lines rely on large volumes of water taken directly from municipal water systems tapped from local watersheds. The same instance has happened in the United States with damaging impacts on the water tables in places where bottling plants are located. Further, there are instances where traces of pesticide have been found on Coke products.
The Coca-Cola Company was founded in 1892. Since its inception, the organization has seen a steady increase in its market share over the years, and to this day has operations in over 200 countries worldwide. To achieve such success in its competitive market, Coca-Cola has employed sound strategies that have helped it become among the leaders in its industry. The Coca-Cola Company utilizes Market Based Management (MBM) techniques as well as Value Driven Management (VDM) techniques within the organization and in its market to help the firm sustain its stronghold of the market.
Coca-Cola HBC has a close relationship with its investors as an important stakeholder to discuss different strategies on water stewardship and anti corruption. Annual assessment of the company’s sustainability performance is provided by Foundation Guile. Coca-Cola HBC is chosen among top three in Europe by analyst regarding investor relations (Coca-Cola HBC Corporate Social Responsibility Report 2011).
Weaknesses – Coca-Cola is a very successful company with an impeccable social media following. Word of mouth is probably a strength, but only when feedback from consumers is positive, but there are people who are against Coca-Cola and their products. Even though Coca-Cola produces over 200 brand products, Coca-Cola lacks the social media popularity of other brands that they produce (Moth, 2013). Many drinks that they produce are extremely popular such as Coke or Sprite, but there are a lot of Coca-Cola products that are unknown, unseen, and unavailable for
As the world 's largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and PowerAde. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.
The effectiveness of these efforts has been shown in the progress they have made with their recycling of packaging, water stewardship, and agriculture. These are, but a few of the areas in which Coca Cola has enacted sustainability into their business practices. With continued efforts Coca Cola will be able to reduce water consumption in production, improve water quality across the globe, improve sustainable practices used by their agricultural suppliers,and reduce wasteful pollution and emissions. It is uncertain what goals Coca Cola will set for itself once it achieves its 2020 goals, but what is certain is the benefits of the current goals they have achieved and will continue to
Coca-Cola is a company with sustainable competitive advantage. The company is innovative and has an extensive business model with boasts of a sustainable distribution network. The company was incorporated in the late 1800s to commence the production of a sweet fizzy beverage that has become the world's most known brand. Presently, the company is still on an upward trajectory as it remains one of the world's most sought-after stocks. The company's competitive advantage has shown resilience and sustainability over the years.
Some key factors that makes The Coca Cola Company “sustainable” are: 1) promotion of active healthy living 2) Human Rights 3) Product & Ingredient Safety 4) Water Stewardship 5) Packaging 6) Recycling and Recovery. The sustainability principles that have been useful for The Coca Cola Company seem to have met in all pillars environmental, ecological, economical, and social. The Coca Cola Company has implemented a program where the goal was to have 100% water replenishment by 2020. To date, they are on track to have this goal accomplished by the end of 2015. An article published online by The Coca Cola Company states, “Based on the Coca-Cola system’s global
Learning from experience Coca-Cola has had some fierce competition over the years but nothing in the form of an entire health market shift like now. As well as mounting political persecution of its products like they are facing today. They must rely on past experiences to get through but likely will need to start studying the new trends to stay relevant.