Competitive Strategy Models with Examples

Competitive strategy
Trimester- T1 2019
Unit Code- HI6006
Unit Title - Competitive Strategy
Assessment Type- Individual Assignment
Assessment Title- Essay – Key Strategy Development Tools
Competitive strategy models with an examples
1

Competitive strategy
Introduction
The report discusses about the several competitive models which can be used by
the company to sustain in the market. The report includes the Ansoff model, PESTEL,
five forces – diamond model and SWOT model with respect to Coca cola.
Ansoff model
What is Ansoff matrix?
It is observed that one has to prepare best possible growth, development, and
penetration strategy for organisations to sustain in the market. The Ansoff model guides
the corporates to prepare such strategies considering the market demand, resources,
risks and capabilities. Coca cola is one of the most well known brands across the globe
and operating in beverages industry from almost past 100 years (Evangelia, 2017).
Market Penetration
The intent of market penetration strategy is to sell the existing goods to existing
markets. Coca-Cola has adopted the market penetration out of four developmental
strategies. Moreover, company has got measurable profit due to this strategy and its
incredible brand name in the market.
Market Development
The strategy of market development refers the process where the company aims
to enter in a new market with existing products. Coca Cola initially captures the US
market and then entered successfully in different countries. Moreover, the company is
operating in almost every country across the world. Recently vanilla coke was
introduced in USA, after getting enough favorability for the product; it now plans to enter
in United Kingdom (habib, 2016).
Product Development
The strategy of product development refers to the activity where the company
targets existing market with introducing new product. Here, the company innovates or
renovates the existing product to capture more market share. Coca cola came up with
diet coke, lemon icy and cherry coke to increase market share and penetrate in the
market with diverse products.
Diversification
Diversification refers to the strategy where the company targets new market with
introducing new product. Diversification enables market to capture more market share
2

Competitive strategy
by introducing the new product as per customers’ expectations. Coke came up with
mineral water and related products other than coke. Moreover, the company has
introduced diet and energetic soft drinks (Ahmed, 2017).
SWOT analysis
Let us discuss the SWOT of Coca Cola. The internal environment anlaysis
includes strength and weakness of the Coca Cola. The external environement analysis
includes the factors of opportunity and threat (Simpson, 2014).
Strength
The company is valued around 80 billion dollar with a considerable market share
in 200 countries. The company has been awarded the highest brand equity awards. The
company has executed largest distribution networks across the industry with highest
brand loyalty from consumer point of view (Ahmed, 2016).
Weaknesses
The company does not have enough product diversification to retain its market
share in the industry. Coca cola has been confronting competition from Pepsi Co. If
Pepsi Co. had not been in the market, Coca cola could have become market leader in
the beverages industry.
Opportunity
Coca cola has an opportunity to diversify its business to food supply chain. With
the existing supply chain, the company can start distribution of snacks based foods
such as wafers. The supply chain can be more efficient that would decrease the overall
cost of the distribution network.
Threats
The Coca cola company has list of strong indirect competitors such as starbucks
and barista. The indirect compeitiors list even includes the companies that sell energy
drinks and fresh fruit juices. Customers may choose juices over the soft drinks.
Moreover, the Coca Cola company was accussed of using pesticides in their products.
It has affected their brand equity (marketing91.com, 2019).
3