Managing Innovation in Business: A Case Study of Coca-Cola Company

Managing innovation in Business
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Executive Summary
Coca-cola Company is the manufacturer, marketer, retailer of nonalcoholic beverages and
syrups. The American corporation is best known for its brand coca-cola, and its share is traded in
public since 1920s. The company has nearly 300 bottling partners worldwide. In 2010, it was
first brand to achieve £ 1 billion in annual UK grocery sale. Coca-cola Company has number of
product, which include, fruit juices, smoothes, coconut water drinks and organic tea.
Problems due to change in customer tastes and shift from drinking sugary drinks the sales
thrashed by 11% in the year 2017. This changes in consumer behavior, lead Coca-cola to bring
out innovative drinks for health conscious customers of UK.
Solution using Innovation
To maintain the business and regain the lost sale, the company not only made changes in the
ingredient and formulated line-extension policy by launching, Diet-coke, but also went for
acquisitions of other companies. Thus apart from carbonated drink the company now has
Sobenbicha, Ice Dew, Green Cola, Diet Coke, Innocent, Dobry, Vio and many more in their
product portfolio.
Customers for coca-cola are both young and old. However, due to increased health awareness
campaign and government health policies the consumer behavior changed. People shifted from
sugary drinks to other healthy drinks, which are more fruit, based.
Diversification in its product and business strategies gave Coca-cola Company a competitive
advantage.
Coca-cola dominates the carbonated market with a market share of nearly 48%. The global
market is estimated at 341.6 billion U.S. dollars. The net operating revenue of Coca-cola until
2017 was 41.86 billion US dollars in United States alone. The four main brands, which drive
growth for the company, now, are Diet Coke, Sprite and Fanta, apart from the classic coke.
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Table of Contents
Introduction......................................................................................................................................4
The Organization and Industry Overview.......................................................................................5
Conclusion.....................................................................................................................................13
Reference List................................................................................................................................14
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Introduction
Innovation in business is required to improve the quality and productivity of the organization.
Innovation means to introduce new objectives in the business strategies. It is required to make an
increase in efficiency. These kinds of innovation develop market demands among the consumers.
This kind of new ideas has impact on the minds of the consumers to use the products. As it is a
creative process, it includes a new brand value. The profitability of the organization also depends
on how the innovation brings positive impacts on the consumers.
In this report it is noticed how the innovation brings impacts on the business structure of the
organization. Cocacola is the chosen organization for this report. Since 1886, this company has
been one of the reputed carbonated soft drinks enterprises quenching the thirst of thousands. In
this report it is analyzed what are the needs of innovation for this organization to keep the brand
value intact (Albert et al., 2014). Innovations taken by the organization are in different sectors
like marketing, system, product and sustainability of the enterprise.
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