Coca-Cola's Competitive Strategy
Added on 2020-02-18
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Running head: COMPETITIVE STRATEGY Competitive StrategyName of the Student:Name of the University:Author note:
1COMPETITIVE STRATEGYSection 1: There can be no gain stating the importance of strategy in determining the organizationalsuccess of a company. In fact, it is the strategy that enables an organization draft an action plandesigned to achieve an immediate or long-term objective. While there will remain thousand ofbeverage companies selling carbonated drinks across the globe, the strategic framework of CocaCola has always helped the company stay ahead of its competitors (Kryscynski 2017). Founded along time back in the year of 1886, Coca Cola has indeed come a long way in evolving itselffrom a mere cocaine-infused elixir to emerge as the most favorite brand amongst the consumers(Moye 2016). Hence, it is interesting to examine how effective strategies have helped Coca Colagain competitive edge over the rival brands. The strategy of any company is its blueprint for success and the same holds truth forCoca Cola as well. However, while attempting to evaluate the strategic priorities of Coca Cola, itis important to understand why strategy adoption became so indispensible for the company. CocaCola has been finding it difficult to sustain itself in a highly competitive market, where it isexposed to tough competition from some of the rival giants such as PepsiCo and Dr. PepperSnapple Group. Consequently, if Coca Cola had to thrive, it must adopt strategies that wouldhelp it boost its profitability, and enhance its revenue growth by attracting the attention of largercustomer base. However, no matter what the organizational goal of a company is, the goal can befulfilled only when it is backed by a powerful strategy. Accordingly, the management authoritydecided that it would retain consumers and attract new ones through the strategy of productdifferentiation (Moye 2016). Consequently, the company, in no time, successfully launched itsfamous drink, named Roo Juice, which was introduced as part of a joint venture between Coca-Cola and Disney that is expected to boost the competitive growth of the company. As part of its
2COMPETITIVE STRATEGYbusiness strategy, the company has at the same time launched different kinds of beverages andcarbonated drinks such as Diet Coke to ensure that it is able to draw the attention of a largercustomer base. Thus, the strategy of the company is to tap the attention of a larger customer base,whereby it tries to serve some unique product as per the needs of each customer base (such asRoo Juice for the kid segment, or Diet Coke for the health conscious segment). Usually, when acompany encounters cut-throat competition, it has two alternative courses of action to follow-either cut down the price or offer innovation in product. Since Coca Cola offers good qualityproducts, the cost-cutting strategy would only imply compromise with the quality of the productoffered. Hence, the strategic course of action chosen by the company to achieve competitiveadvantage over the rival brands is to offer a variety of new products promoted by valuable brandssuch as Disney that can help in attracting the attention of a larger customer base. Section 2: The importance of business model in a company can never be overstated. In fact, it isimportant to note that it is the business model that provides a structured framework to anorganization about how a company can generate its revenue, identify new and unique sources ofrevenue or how it will target its new customer base (HSGUniStGallen 2017). Thus, the businessmodel of a company plays a vital role in making or marring the success of the company. Avariety of business models are available and different companies usually adopt them as per thespecific needs of the industry. Although there are many companies, the business model ofGoogle is being selected as it has emerged to be the most recognized American multinationalcompany which has managed to organize global information and to make it universallyaccessible and useful.
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