Essay on Coke Strategy

1359 Words6 Pages
Coca Cola is the leading manufacturer, marketer and distributor of soft drinks in the world. With domestic market nearing saturation, the potential for growth lies in international markets. In recent years, economic, political and social changes have made the global environment more uncertain, forcing Coke to reevaluate its strategy, structure and culture to maintain a competitive advantage. The following is a dynamic analysis that tracks the evolution of Coke’s strategy from global standardization to a multi-domestic strategy that emphasizes national responsiveness. During Goizueta’s management term, Coke is already a large, mature company in the formalization stage of its life cycle and in the international stage of global…show more content…
Coke is also pursuing a prospector strategy, expanding its international footprint with heavy investments in emerging markets and a series of bottler acquisitions and strategic alliances. The company reaps additional efficiencies through its network of independent bottlers, which allows Coke to focus on concentrate production and marketing without getting bogged down with the high-cost bottling business. The organization is concerned with external issues and structural stability, leading to a rational goal emphasis. Adopting the right structure to match its strategy and environmental conditions is another reason for Coke’s effectiveness. It has a functional structure with an international division. The structure is designed for efficiency and control, and it delivers economies of scale/scope and low-cost production. Under Goizueta, Coke has a dominant market share and the “world’s greatest brand,” however, towards the end of his term, the company experiences a blinded stage due to a lack of effective scanning/control systems to alert management to symptoms of organizational atrophy. When Ivester succeeds Goizueta in 1997, major shifts in the market, government and international sectors are increasing environmental complexity in a way that makes Coke’s current strategy and structure less

More about Essay on Coke Strategy

Open Document