Strategies in any business are instrumental in the proper growth and expansion of a company. A strategy is a set of analytic techniques for understanding and influencing the firm 's position in the marketplace (Raimundo, 2001). Moreover, the business strategy enables a company to match its internal capabilities and its external environment. Also, the plan assists the company to realize its objectives and mission set at its inception or along the course of its operation in a particular period. The business-level strategy involves organizational decisions on how to compete for customers in the market and industry. It includes choices about the service mix, products, new technologies, facility locations and the like.
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Through powerful advertisement campaigns, Coca-Cola has managed to market its brands all over the world. An important business-level strategy implemented by Coca-Cola is developing new consumer products such as the new flavors of Vanilla and Cherry Coke. Also, the company has also introduced healthier soft drinks like the diet coke, and this has appealed to many consumers globally. The need for developing corporate-level strategies enables an organization to be globally efficient. Also, it is seen as a way of remaining competitive and creating more standardized products as is the case of Coca-Cola.
The goal regarding this study is to analyze the business-level and corporate-level strategies of Coca-Cola Company and determine the most relevant strategies that align with the long-term success of the firm. Also, this paper will discuss Coca-Cola 's competitive environment to determine the organization 's most aggressive competitor. A comparison of both strategic levels (Coca-Cola and competitor) will evaluate which company is most likely to be long-term successful.
1.Business-Level Strategies for Coca-Cola
According to the 2011 annual report filings by Coca-Cola with the U.S Securities and Exchange Commission, a significant differentiation and business-level strategy employed by the company is the use of technology advances in creating cost-friendly and efficient means of drink production. Furthermore, the commitment to innovation and sustainability has
When Coca cola bring refreshment, value, joy and fun to their stakeholders, then they successfully nurture and protect their brands, particularly Coca-Cola that is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. Marketing positioning Local marketing strategy enables Coke to listen to all the voices around the world asking for beverage that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you’re a student in the United States enjoying are freshing Coca –Cola a woman in Italy taking a tea break , a child in Peru asking for a juices drink, or a couple in Korea buying bottled water after a run together, “Coca cola is there for you. Coca cola are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, well ness, and diversity. Coke Strives to be a good neighbor, consistently shaping business decisions to improve the quality of life in the communities in which coke does business. It’s a special thing to have billions of friends around the world, and coke never forgets it.
Strategy is a set of complicated tactics formulated by the executives of a company directed towards the achievement of company’s goal (Salmela, 2002). It is about all the path ways that a company would follow to reach its ultimate goal. It is a company’s strategy which helps to identify what it does better than the other companies in the industries, which may be different from what it does best. For successful strategy formulation and implementation, a company should know the needs of customers and should have knowledge of its competitors. Through a good strategy a company would identify that opportunity which makes it different from the others (Thompson, 2005).
Does Coca-Cola allow various factors to influence the decision-making process? There are different strategy levels striving to meet or exceed overall corporate strategies within Coca-Cola. This essay will discuss functional, stability, competitive versus cooperative, trade offs, and retrenchment strategies. It will also provide examples or advantages and disadvantages the company utilizes at a corporate strategic management for tailor logical portfolio decision changes when warranted. Leading off with the first topic of this discussion, what is a functional strategy and can it affect decision-making?
Coca Cola was focused on the globalization of its brand. Coca Cola has the widest variety in the beverage industry comprising of around 3300 products and it exists in almost 200 countries. Coca Cola has a global brand value and loyalty as compared to
According to Slack et al. The corporate strategy or business strategy is the guide lines for the whole corporation’s businesses in relation to its markets, customers, and the competitors (2007). In the same context, the same authors discussed the link between the corporate strategy and
A competitive strategy, or business-level strategy, is the way a business used to successfully enter and penetrate into a market (Eastwood et al, 2006), and also, to succeed in this chosen market against its competitors (Johnson et al, 2014). A company needs to develop and apply appropriate strategy to help the company to generate distinctive competences (David, 2007). Compared with the strategies implemented in other levels of operation, competitive strategy is more focused on the competition against other competitors and strategic choices to better attain market share (Harrison and St. John, 2009). According to
Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).
The Coca-Cola Bottling Company holds true to their values and strategy, thus creating more value within their brand. Business level strategy implements new products that embodies a fun and sociable atmosphere amongst family members and friends. This ambitious quality in a company is what pushes them past the threshold of complacency to move their product. One way they were able manage their brand globally was by using intense advertisements. Adding to their already famous and highly desired beverage, a business level strategy was instituted to add flavors to their cola product. By adding Cherry Coke and Vanilla Coke to their products, they satisfied the taste buds of millions upon millions of consumers here and abroad. Having the corporate level strategy makes the corporation thrive in the global market. It is also viewed as staying relevant or competitive, by developing more products that would best serve everyone who enjoys their product.
The Coca Cola company is perceived to be the most famous trademark on the globe, and it is equally so. The company claims more than 400 brands that appeal to a wide range of individuals throughout the world. They are in a position to fulfill needs of every one of their buyers making their experience with their beverages a better one. The entity’s drinks entice a lot of people across all races, age, and gender. Coca Cola is outstanding for its overall popularity as its items are sold in over four hundred countries in the world, while major contenders like Pepsi are just available in very few countries. Such a competitive advantage has placed
The Coca Cola Company is very cautious and responsive to change; they act with urgency and have the courage to discourse when needed to work more efficiently. Coke’s focus is to administer its system assets to build values and rewards for the people who take risks by finding better ways to solve problems. Coca Cola Company feels they are accountable for their actions and inactions and hence answerable to the people. They learn from their outcomes and understand what works or what doesn’t for them.
This paper focuses on global business strategy of The Coca-Cola Company, who is the leader in the beverage industry as well as, the world?s leading soft drink maker that operates in more than 200 countries and owns or licenses 400 brands of nonalcoholic beverages. The paper will concentrate on the PESTEL analysis of the organization focusing on the external factors of the business and the environment where it operates. All of the following environments will be discusses in the research; Political, Economic, Sociological, Technological, Legal, and Environmental as they the changes in the market segment. Within this paper it will discuss some of thr
“Competitive strategy involves positioning a business to maximize the value of the capabilities that distinguish it from its competitor’s” (Porter 1980:47). A successful business plan requires first and foremost the formation of an appropriate strategy. Through the implementation of a suitable strategy, the company is able to obtain its own industry niche and gain an understanding of its customers (Porter 1985). Whichever strategy is adopted it must be adequately integrated within the firms goals and missions to achieve a competitive advantage (Parker and Helms 1992).
Last year, Coca-cola saw its sales decreased in the European market. In order to increase the sales, Coca-Cola needs to define a new strategic communications plan. As mentioned above the image of Coca-Cola has been damaged quite a lot for the past 2 years by different factors. A hard work needed to deal with consequences of this damage in the image of the company.
A strategy is said to be a plan that is made for the long term success of a product or brand. It is extremely important to have a strategy in order to figure out a direction towards which any company is able to focus all its resources efficiently and achieve desired outcomes. Formulating effective strategies is a considerably long process in itself that combines analysing several factors, situations and issues that are already present in a company and looking to improve on them alongside trying to implement various innovations and ideas to collectively create a direction towards which they can move and direct the resources available to them.