Strategic Plan: Addressing Issues Faced by Coca-Cola Company

This report provides a comprehensive strategic analysis of the Coca-Cola Company, focusing on its challenges and opportunities in the global beverage market. It begins with an introduction to the company and its significant presence worldwide, followed by an identification of key issues such as socio-economic changes, health concerns, and increased competition. A detailed SWOT analysis is conducted to evaluate the company's strengths, weaknesses, opportunities, and threats. The report then proposes alternative strategies, including distribution, corporate, pricing, communication, and brand development strategies, to address the identified issues and enhance the company's competitive advantage. The conclusion summarizes the findings, emphasizing the importance of adapting to changing market dynamics and the need for strategic planning to ensure the company's continued success. Finally, recommendations are provided, highlighting the importance of health consciousness, cost reduction, technological advancement, and employee training. This analysis offers valuable insights into the strategic management of a leading global brand and can be used for leadership and management courses.

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STRATEGIC PLAN
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Table of Contents
Introduction................................................................................................................................2
Identify the issue........................................................................................................................2
Analysis of Issues.......................................................................................................................3
Alternative for the issue.............................................................................................................5
Conclusion..................................................................................................................................6
Recommendation........................................................................................................................7
Reference....................................................................................................................................8

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Introduction
The paper discusses about the case study of Coca- Cola Company in Australia. The
paper highlights about the strategic analysis of the company. The company is a leading brand
in the beverage segment. It serves its operations in more than 200 countries and it also have
large target market. The company is one of the successful beverage brand in the international
market. The company have started its business in the year 1886 and have earned respect and
value all over the world (Banutu-Gomez 2012). The purpose of this paper is to identify the
issues of Coca- Cola Company and develop strategic plan to overcome such issues for
achieving competitive advantage in the global market.
The strategic aspects of the company can help the company in strengthening the
competency level for facing the challenges of various rivalries in the business field. The
company sells beverages to Europe, North America, and East South Asia and in many other
countries throughout the world. The strategic plan is developed by identifying the key issues
that have impacted the company’s performance (Dauvergne 2012). The challenges are high
when the company is in leading position in the market, but needs to manage the strategic
roles of the company. There are several operations which needs monitoring of process to cut
down heavy cost and wastage of resources.
Identify the issue
The issue with the company is that it faces major challenges in current competitive
market place. This is because of the socio- economic change, market driven changes and
changes in various regulation by the government. There is a need of external analysis for the
soft drink business in order to determine the impact of environment that is external and
internal environment to the business. The internal analysis helps the company to determine
the internal capabilities for higher growth in the business and to overcome the lack of

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leadership approach in the global market (Toğlukdemir 2016). The financial performance of
the company have been excellent but the company have extended its brand and distribution
network in the market which have led to inactivity in the market. The company have faced a
loss with carbonated products that have affected the growth of the Coca- Cola Company. The
company faced a slowdown in the business in the carbonated segment. The company have
several other strategic issues such as health and wellness sector, and increased competition
(Ware 2014). The health and wellness is an issue as the company is dealing with carbonated
products, but customers are concerned of their health and focuses more on dietary drinks.
The company have faced several issues on carbonated products which slowed down
the business in international market. The increased level of competition have occupied the
market and the competitors have several unique strategy to compete in the market by
providing the customers with the drinks that they demand of. The Coca Cola Company need
to analyse the needs of customers and their changed demands on beverages (Stead 2013).
With this rapid changing environment, the new generation people are more concerned on
their health and diet products. Their increased demand for healthy drinks have introduced
many competitors to do business by serving health drinks. The competitors are serving green
tea, filtered coffee and availability of fruit juice in highly packaged manner have attracted
several customers to switch towards the competitors (Scott 2018).
Analysis of Issues
The issues that have been stated above can be analysed using SWOT analysis for
Coca – Cola Company. This analysis can help to identify the core of the business and its
issues where the changes are to be made.

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SWOT Analysis
Strength Weakness
The company have high brand value.
The strategies for the company have led the
position high in the market.
The company is running for long period of
time and is serving the best drink that
customers’ demands.
Suppliers are high in numbers for
The company have high competition in the
market that can be tackled by introducing
unique strategy for the company.
The pricing of coca cola drinks are quite
high as per the competitors (Wellington
2014).
The drinks have high carbonated percent
which has encouraged the competitors stand
in the market.
Opportunity Threat
The opportunity for the company is to serve
healthy drinks that various competitors are
serving.
The company must implement latest
technology that can help in competitive
advantage (Nadaf 2014).
The healthy drink must be different from
competitors, as they serve only one type of
healthy drink. The company can provide
with a package of several flavoured fruits
with high nutrition content.
The strategic plan for the company
identifies the flavoured drinks that is mostly
The competitors may also low the price
which can give tough competition.
The lowering of price may often leads to
high cost and low savings of the company.
Sales rate is decreasing rapidly due to
changing in customer preferences.
The high competition in the market is a
threat for the company.
The drinks have high proportion of
carbonated percent in the drinks that is
losing value in the market.

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demanded by the target market.
Alternative for the issue
The issues can be resolved by developing several strategies that can help to overcome
the lack of competency in the market. The company having efficient manpower in the
company to produce such a high range of products in stipulated time slot can trigger the
competitive advantage in the global market (Mohamed 2015).
Distribution strategy- The distribution strategy states that the higher is the distribution
channel, the more advertising of the product is done and the people can be provided with
services easily. This strategy is that the products are availed in rural and urban areas in order
to save the advertising cost and encourages for easy access and availability of the product in
the market (Furey 2012). Coca Cola can improve its distribution and management operations
with adopting distribution strategy.
Corporate strategy- the effective strategy and management of the company can lead to
success. The company by short time moves with strategic partnership can trigger the
competitive advantage.
Pricing strategy- the price is a factor that impacts heavily in a business. The company must
reduce the price of the products as per the demands by the company. The sales can be
increased by consumption of drinks by large target market (Duhaime 2013).
Communication Strategy- the strategy states that high communication among the customers
and the company can help the company to address all the issues of customers and enhance
functionality of the firm.

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Brand Development Strategy- the strategy is used to manage the value and goodwill of the
company by not including alcohol in the business. The company can focus on the customer’s
mind set in value of price and preference for the products.
Conclusion
The paper concludes that the company have determined the internal and external
environmental analysis so as to overcome the issues that the company face sin the continuous
change in the international market. The company have taken measurable steps to reduce the
carbonated beverage. The company have developed strategies to diversify the product
portfolio in order to make the product non -carbonated one. The company have managed the
revenue and cost by determining the need of customers. The company have efficient
manpower in the company to produce such a high range of products in stipulated time slot.
The SWOT analysis is done to determine the threats and weakness of the company. This
analysis helps to develop the strategies that can boost the company from slowing down in
business. The healthy drinks that the company can introduce may help to increase the brand
value. The pricing strategy must be critically analysed by the experts for effective growth of
the firm. The value is increased by effective strategic plan. The company have the ability and
strength to face all the challenges that can have high impact on the business. Thus, with the
development of strategy for competitive advantage, the company have analysed properly the
areas for improvement and acknowledged the change in the operations of the company.

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Recommendation
 The company must use the strategies that are discussed above. The pricing strategy
and all other strategy can trigger the competitive advantage of the business.
 The company must be health conscious, as the customers are interested in healthy
drinks.
 The leadership in the market can be achieved by providing value to the customers and
analysing the competitors changing strategic plan (David 2013).
 The company must reduce its cost by determining the amount of products to be
manufactured at particular period of time.
 The technological advancement can help the company to overcome the issues of
competitiveness in the global market.
 Several training programs must be introduced to train the employees for enhancing
their skills and knowledge in the technological aspects.

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Reference
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