Competitive Strategy Analysis: Nestle, Coca Cola, Toyota, Ford

This report provides a strategic competitive analysis of Nestle, Coca-Cola, Toyota, and Ford, examining their market entry strategies and global value propositions. The analysis delves into the strengths and opportunities each company has leveraged within the food and beverage and car industries. Case studies explore Nestle's approach to target markets in China and Coca-Cola's diverse market entry modes, including franchising and foreign direct investment. The report also examines Toyota's globalizing value proposition, focusing on hybrid cars, and Ford's global strategies. Recommendations are provided to enhance each company's strategies, address weaknesses, and adapt to evolving market dynamics. The report emphasizes the importance of strategic discipline, market entry timing, and positioning strategies to maintain a competitive edge.

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Competitive Strategy Analysis
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1COMPETITIVE STRATEGY ANALYSIS
Executive Summary
Strategic competitive analysis is focused on identifying the competitors along with
analyzing certain strategies for determine weaknesses and strengths associated with the
company’s services and product. A competitive analysis serves as a vital part of the selected
companies marketing plan. The objective of the paper is conduct strategic competitive analysis
of the selected companies. Nestle Company and Coca Cola Company are selected in order to
analyze target markets and mode of entry within food and beverages industry. In addition,
Toyota Company and Ford Company are selected in the paper in order to analyze globalizing
value proposition within car industry. Strengths and opportunities attained from the selected
competitive strategies by the chosen companies will be analyzed in the paper. Moreover, certain
recommendations will also be provided to the companies so that these strategies make them
evolve with time along with decreasing their threats and weaknesses.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Target Markets and Modes of Entry in Food and Beverage Industry.........................................3
2.1. Case Study 1: Nestle Company............................................................................................3
2.2. Case Study 2: Coca Cola Company......................................................................................5
3. Globalizing Value Proposition in Car Industry...........................................................................6
3.1. Case Study 1: Toyota Company...........................................................................................6
3.2. Case Study 2: Ford Company...............................................................................................8
4. Conclusion.................................................................................................................................10
Reference List................................................................................................................................11

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1. Introduction
Strategic competitive analysis is focused on identifying the competitors along with
analyzing certain strategies for determine weaknesses and strengths associated with the
company’s services and product. A competitive analysis serves as a vital part of the selected
companies marketing plan. The objective of the paper is conduct strategic competitive analysis
of the selected companies (Amine and Raizada 2015). Nestle Company and Coca Cola Company
are selected in order to analyze target markets and mode of entry within food and beverages
industry. In addition, Toyota Company and Ford Company are selected in the paper in order to
analyze globalizing value proposition within car industry. Strengths and opportunities attained
from the selected competitive strategies by the chosen companies will be analyzed in the paper.
Moreover, certain recommendations will also be provided to the companies so that these
strategies make them evolve with time along with decreasing their threats and weaknesses.
2. Target Markets and Modes of Entry in Food and Beverage Industry
2.1. Case Study 1: Nestle Company
Strengths and Opportunities Attained from Target Markets and Modes of Entry Strategy
Based on the likings of its target market in different regions of the world, Nestle
Company has decided to implement certain effective market entry strategies to attain competitive
edge over its business rivals. For instance, Nestle has attempted to buy local companies in China
and modified its own product portfolio based on the demands of the Chinese market (Ang,
Benischke and Doh 2015). As numerous Chinese consumers find coffee a bit bitter and do not
prefer such taste, Nestle has attempted to develop an innovative formula to offer these consumers

4COMPETITIVE STRATEGY ANALYSIS
with “Smoovlatte” that is a coffee beverage almost tasting like an ice cream. The target market in
this nation prefers the company to position itself as a company that offers them healthy food. In
entering the international market the company has used its brand name as a strength in order to
attain increased sales along with increasing its market share that encompass all its customized
products which fits better in its target market profile (Ashton, Richards, Galatsanou and Bollman
2014). Nestle has always used acquisition method as an effective market entry strategy for
expanding and penetrating within new global markets that decreases all the local barriers to its
competition.
Recommendations
Based on the successfulness of the strategy implemented by Nestle Company in capturing
its target market through suitable modes of entry, several recommendations have been provided
that can facilitate the company in attaining competitive advantages. Considering the same, it is
recommended that Nestle needs to implement strategic discipline in selecting the target market it
needs to serve (Crane et al. 2014). The company also needs to decide the perfect time to enter
into a target market along with measuring the considerable advantages of the direct as well as
indirect presence in several regions of the world. Considering the weaknesses of the company’s
market entry strategy and quality measure that recalls for product recalls, Nestle must decide to
decentralize its market entry strategy units into 7 subunits dealing with different product lines.
For instance, single subunit for coffee and beverages along with another one just focusing on
milk products and ice cream. Moreover, to address such weaknesses in its strategy, the company
is recommended to bring all its management level staff from all through the world for a two
week training in its headquarter (Gereffi and Luo 2015). Such training will facilitate the

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company in ensuring that all its staff are familiarized with their global culture, new market entry
strategy along with offering them access to the organizations top management.
2.2. Case Study 2: Coca Cola Company
Strengths and Opportunities Attained from Target Markets and Modes of Entry Strategy
Coca Cola has attained several opportunities through selection its target market along
with implementing suitable market entry mode (Getz and Robinson 2014). Based on the
demands of the international target market, Coca Cola Company has decided deviate its focus
from manufacturing normal product and concentrated on expanding its beverage varieties.
Considering the need of its target market, Coca Cola has developed mixed fruit drinks, high
calorie energy drink and basic water drinks. Coca Cola follows different market entry mode
strategies to enter the international market such as joint ventures, exporting, and licensing,
financing and foreign direct investment. Along with reporting its new beverages and special
syrups, the company also exports its merchandises to all its foreign companies and distributors.
Coca Cola attained several benefits in franchising market entry mode strategy (Kim and
Mauborgne 2014). This strategy used by the company is manufactured-sponsored wholesalers
manufacturing process. Coca Cola attained the opportunity of franchising its finished products
and selling them to retailers in global target market. Moreover, licensing also served as most
effective entry mode for the company as it offered the company with advantages of export
market opportunities, diffusion of new products and decreased risk manufacturing relationships.
Recommendations
Based on the demands of its global target market that desires innovative beverages and
non-alcoholic sparkling drinks from Coca Cola, it is recommended that the company must select

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market entry mode of foreign direct investment through acquisitions (London, Pogue and
Spinuzzi 2015). This can provide the company with advantages of direct ownership of facilities
within the global target market along with attaining opportunities like technology, capital and
workforce. Direct ownership market entry strategy must be implemented by Coca Cola Company
as this can provide the company with increased control on its operations along with capability to
address its consumer’s demands along with its competitive environment. Another market entry
more strategy that is recommended to Coca Cola is through strategic alliance or joint venture
with renowned companies in target country as this might facilitate the company in sharing risks
and resources needed to enter global markets (Kim and Mauborgne 2014). There are several
benefits that can be attained by Coca Cola in partnership market entry strategy that includes
successful and profitable market entry, technology strain, risks and rewards sharing, joint
product advancement along with successful confirmations of government regulations. Exporting
market entry strategy is also recommended to Coca Cola that can facilitate the company in
making direct sale and marketing of domestically manufactured products to all its target
countries.
3. Globalizing Value Proposition in Car Industry
3.1. Case Study 1: Toyota Company
Strengths and Opportunities Attained from Globalizing Value Proposition Strategy
Over the past years, Toyota Company was observed to struggle for coming up with
innovative design after maintaining a successful setting of superior quality cars (London, Pogue
and Spinuzzi 2015). Through the company was attaining increased profits the company was
dealing with issues regarding ensuring the consumers the future of its manufactured cars with

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less environmental concerns. Futuristic global value proposition strategy of the company as per
the demands of its target consumers provided Toyota with several opportunities to manufacture
hybrid cars that can use electricity as well as liquid fuel simultaneously. Global value proposition
strategy of Toyota is to address the un-met needs of its target consumers. The company has
developed its cars based on the needs of its consumers worldwide those love their cars and can
easily accept change particularly if it is based on their physical well-being and comfort (Meyer
and Thaijongrak 2013). Considering the same, Toyota Company has developed its value
proposition of offering hybrid cars based on consumer demands. Such global value proposition
strategy of the company has been effective enough in serving as a key to the business for the
reason that the company that develops value proposition strategies based on future trends will be
more successful than a company that develops value proposition strategies based on instant
trends. Global value proposition strategy of Toyota Company has generated a strong differential
between the companies and is business rivals.
Figure 1: Globalizing Value Proposition of Toyota Company
(Source: London, Pogue and Spinuzzi 2015)
Recommendations

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Based on the success of the globalizing value proposition strategy of Toyota, the
company is recommended to focus on its positioning strategy which pertains to marketers
offering design along with its product image for attaining an exceptional place in the minds of
target market of the company (Moodie et al. 2013). Efficient product positions should be
maintained by Toyota that can facilitate the company to develop consumer focused value
proposition that in turn offers a basis to its target market for purchasing a particular product.
Globalised value proposition strategy of Toyota must be focused on providing superior quality
fuel efficient cars that comes with different colors and variations. The company is also
recommended to position it with unique selling proposition for all its distinct versions. Such
positioning strategy might offer Toyota Company with opportunities of selling exceptional value
to its target consumers and attain global positioning in an innovative and different manner
(Nielsen and Lund 2014).
3.2. Case Study 2: Ford Company
Strengths and Opportunities Attained from Globalizing Value Proposition Strategy
Figure 2: Globalizing Value Proposition of Ford Company
(Source: London, Pogue and Spinoza 2015)

9COMPETITIVE STRATEGY ANALYSIS
Ford Company has attained numerous opportunities in globalizing is value proposition
strategies. The globalised value proposition strategies of Toyota are described under:
 The company has established and respected brand name: The Company being one of the
highly renowned names in the car industry along with manufacturing some of the highly
important car models all through several jurisdictions (Ofreneo 2016).
 The company’s global sales along with its marketing reach: The Company offers
innovative global value propositions that have a string back record that manufactures
effective and reliable cars for both the customers along with for commercial operators.
 The quality along with reliability of the company’s products: The value proposition
strategy of the company that has attained global success that operates within a wide
network for Ford along Lincoln branded car dealerships that reaches international
consumer base that has considerable market share within jurisdiction all through Europe
and America (Pananond 2013).
 The company has attained expertise and experience: The Company has developed
effective global value proposition strategy by being among the oldest car manufacturers
all through the world along with maintaining the capability to grab attention of highly
trained specialist personnel along with appointing experienced industry executives.
Recommendations
Based on the opportunities that can be attained by Ford Company, the company is
recommended to develop more innovative value proposition strategies and position itself as a
leading manufacturer of cars. Ford Company is recommended to develop innovative design after
maintaining a successful setting of superior quality cars. Through the company must focus on

10COMPETITIVE STRATEGY ANALYSIS
attaining increased profits the company was dealing with issues regarding ensuring the
consumers the future of its manufactured cars with less environmental concerns (Riasanow,
Galic and Böhm 2017). Futuristic global value proposition strategy of the company as per the
demands of its target consumers must focus on providing Ford with several opportunities to
manufacture hybrid cars that can use electricity as well as liquid fuel simultaneously. Value
proposition strategy of the company must focus on developing car products online along with
developing personalized models of the cars within the company’s website. The company must
focus on selling its products through offering maintenance and support service to its target
consumers for making its international value proposition strategy successful.
4. Conclusion
The objective of the paper is conduct strategic competitive analysis of the selected
companies. Nestle Company and Coca Cola Company are selected in order to analyze target
markets and mode of entry within food and beverages industry. In addition, Toyota Company
and Ford Company are selected in the paper in order to analyze globalizing value proposition
within car industry. It is gathered from the paper that Based on the likings of its target market in
different regions of the world, Nestle Company has decided to implement certain effective
market entry strategies to attain competitive edge over its business rivals. Coca Cola has attained
several opportunities through selecting its target market along with implementing suitable market
entry mode. Based on findings it is recommended that efficient product positions should be
maintained by Toyota that can facilitate the company to develop consumer focused value
proposition that in turn offers a basis to its target market for purchasing a particular product.

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