Article | Competitive Advantage

Management
Competitive advantage
Student’s name
8/19/2019

Competitive Advantage 1
Introduction-
Strategic development tools mainly consider the potential internal as well as external impact on
the organization and accordingly mapping out an approach to deal with such impact. Hence, for
this there are numerous tools, which can be further applied to develop an appropriate plan, which
can be put into an action effectively. Hence, various strategic tools comprises of SWOT analysis,
Porter’s five-force model, Ansoff matrix, pestle analysis (Hitt, et al, 2012).
SWOT analysis is strategic marketing tool, which mainly highlight about the companies
strength, weaknesses, external opportunities and threats, which makes the company aware about
the market happenings, and accordingly they can make further strategies to win over the market
in only in financial terms but also in terms of long-term reputation.
Strength of Coca-Cola Company highlights that it is considered as the highest brand with the
main brand equity. Other than this, they also have the vast worldwide occurrence with the unique
brand personality. Moreover, they also capture the large market share and they have customers’
loyalty as compared to the other brands. Along with this, they also have the large distribution
network all because of the demand in the market (Chapman, 2011).
Weaknesses among the brand highlights that they are having a higher rivalry with the Pepsi. As,
the rivalry in-between these two varieties is immense. Other than this, product diversification is
also very low but if we see the competitor company Pepsi, they have introduced varieties of
snacks such as lays and kurkure and much more. In terms of health, people are now more
concern for their health and they are taking various health. Hence, by this, the sale will get
majorly affected and so does with the companies branding position.
Opportunities of Coca-Cola mainly states that they can diversify their products in terms of
health and food commercial as this will improve the contributions of the Coca-Cola to their
ultimate clienteles. Other than this, they should also makes improvement in supply chain as their
entire corporate is based on conveyance and delivery, thus, in this case they can keep an eye over
the supply chain and retain working over the price reduction (Santos, & Laczniak, 2015).

Competitive Advantage 2
Threats of Coca-Cola, mainly highlights about the competitors not only in the same product line
but other than this, coffee such as Starbucks, costa coffee are also one of the biggest competitor
to the carbonated drinks. Other than this, healthy drinks such as Real juices, Tropicana as well as
many energy thirst-quenchers like red bull are stealing away the large marketplace or the
customers’ base of Coca-Cola indirectly. Moreover, raw material sourcing is also important and
in terms of Coca-Cola, H2O is the major risk. Due to this, the company will experience the major
fall in their revenue and the distribution (Hassan, Amos, & Abubakar, 2014).
Pestle analysis mainly highlights more about the external environment other than the
competitive forces. The external environment mainly comprises of political, economic, legal,
technological and environmental factors. If we talk about wesfarmers, it is one of the well-known
companies, which mainly based in Australia, and deals in retail, chemical, fertilizers and
coalmines (Jie, & Gengatharen, 2019).
Political factors- play a significant role and having a major impact over the profitability. In
order to achieve success in which retail business certain political risks and factors that are need
to be considered before arriving or participating in certain marketplace. As political steadiness is
must to maintain the country’s budget, legal framework for agreement implementation, taxation
in includes taxes rates and incentives (Campbell, 2017).
Economic factors- it mainly includes information about inflation rate, foreign exchange rate,
interest rate, GDP of country. As, all these factors has major impact on companies’ profitability
and for that they need to consider likewise, the rate of GDP growth in the country will affect the
wesfarmers to grow in the near future (Campbell, 2017).
Social factors- Society culture also impact the workings of the organizations as shared attitude
and beliefs of the population also plays the major role as through this company got to know
about their customers wants and needs and accordingly the actions are taken onto place by the
company. Other than this, certain measures are need to be taken into consideration such as
demographics, attitude, leisure interest and class structure, hierarchy and power structure in the
society (Campbell, 2017).
Technological aspect mainly highlights about the innovation, this is not only for the sake of
maximizing the profits of the company but other than this, it also prevents obsolescence in the