Competitive Advantage: A Strategic Analysis of Coca-Cola Company

This report provides an analysis of Coca-Cola's competitive strategy within the food and beverage industry. It examines how Coca-Cola maintains its competitive advantage in the market, particularly against its main competitor, Pepsi. The report discusses the importance of attracting customers, and meeting their needs. Key strategies include the 'Blue Ocean' strategy, foreign direct investment, product quality, employee training, brand marketing, and a focus on core business operations. The report highlights Coca-Cola's global presence, effective marketing, and continuous employee training as critical factors in its success. The report also emphasizes the importance of legal and ethical competitive practices and collaborative decision-making within the company.

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Competitive Strategy
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Competitive Strategy
Competition is inevitable for businesses. These are due to the availability of many
entrepreneurs transacting same goods and services since they view the business as attractive and
with huge profits. Therefore, a firm must be competitive to attract more customers who will, in
turn, increase their profit margin (Wagner III, and Hollenbeck, 2014). There is a guarantee of the
perpetual existence of the business in the market. Stakeholders and managers must ensure that
the firms meet the needs of the customer adequately to secure market of its goods and service.
Customers are the critical people for enterprises and managers must strive always to make their
needs satisfied. Happy customers will return for more goods and services from the firm and also
help its marketing. Business must have a competitive edge in the market to be successful.
Companies always use the ‘Blue Ocean' strategy as a competitive strategy to avoid competition
(Kim, and Mauborgne, 2014). It aims at firms identifying ‘blue oceans' which are areas without
competitors and then starting their businesses in those areas. These make the firms have no
competitors thus increasing the market of its sales. These reports will focus on Coca-Cola
Company which is in the food and beverage industry and look for the ways the management
makes it have a competitive advantage in the market.
Coca-Cola Company is located in Atlanta in America and the largest firm in the beverage
sector but with Pepsi as the major competitor. The company management is qualified to ensure
the decisions made make it successful. The high group sales are as a result of many reasons such
as foreign direct investment. These means the ability of a firm to invest in the international
market with the aim of making more sales. Coca-Cola has branches many countries, and this
makes the business has attracted a large market base. The firm has quality products that meet the
customers' needs. These have been achieved by employment of qualified employees as it has a

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global pool to source them. It has also invested in research making it adapt to the changing
business environment.
The company has invested heavily in its business and brands in the market. Marketing of
the Company is superb. The company products are known by all potential customers globally
due to the vigorous advertisement. The brands are customized to meet the customers' needs fully
thus a great source of attraction of the firm's products and services. Over the years the company
has put more emphasizes on its core business and this makes the firm not divulge from its goals
thus assurance to the customer of better quality products. Employees are the persons involved in
the execution of the company's business, and Coca-Cola Company offers continuous training to
ensure they are updates of new business changes (Rothaermel,, 2016, pp. 233-256).
Finally, business requires joint efforts of all the persons to succeed, i.e., stakeholders and
the employees. Decision-making must be properly researched and the merits greater than the
demerits for them to be adopted. Competition has been a reason for many business failures, and
managers must be creative and innovative to find ways of ensuring the firm is competitive in the
market. However, the ways must be legally accepted in the business sector (Madsen, and Walker,
2015).

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References
Kim, W.C. and Mauborgne, R.A., 2014. Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business review
Press.
Madsen, T.L. and Walker, G., 2015. Modern competitive strategy. McGraw Hill.
Rothaermel, F.T., 2016. Competitive Advantage in Technology Intensive Industries.
In Technological Innovation: Generating Economic Results (pp. 233-256). Emerald
Group Publishing Limited.
Wagner III, J.A. and Hollenbeck, J.R., 2014. Organizational behavior: Securing competitive
advantage. Routledge.