Coca-Cola Company Evaluation

Topics: Strategic management, Coca-Cola, Competition Pages: 3 (1045 words) Published: March 18, 2013
The Coca-Cola Company: Company Evaluation
The Coca-Cola Company is the leading supplier of non-alcoholic beverages in the world. The brand is most recognized in the industry, providing over 3,500 soft drinks, sports drinks, water, juices, coffee, and milk products to more than 200 countries around the world. Guided by the company’s core values, Coca-Cola has created value and accomplished great notoriety through careful planning and execution of their business strategy. Current Strategies

Although the Coca-Cola operates in a consolidated industry the company is still able to implement an integrated low cost/ differentiation strategy that “builds on the company’s basic strengths in marketing and innovation, driving increased efficiency and effectiveness in interactions with our system and generating new energy through core brands that focus on health and wellness”(Coca-Cola Company). The low cost side gives the company the ability to continue building profits in the midst of new entrants into the industry, substitutions, competitor rivalry, suppliers' power, and buyers' power. The low cost/differentiation strategy allows Coca-Cola to decrease costs consistently while adding differentiated attributes to its product lines. Using this strategy, Coca-Cola has “ increased its annual marketing budget substantially, launched many new products, and developed a model to help retail customers maximize their sales while continuing to plan for the next one, five and ten years in business” (Coca-Cola Company). In addition, the company implements a combination of defensive tactics as strategies for dealing directly with competition efforts to create sustainable growth opportunities. Because of direct competition from Pepsi, Coca-Cola uses a frontal assault strategy to match the competitor in every category from price to promotion to distribution channel. In addition, the company implements an encirclement strategy by offering a larger variety of products in more markets....
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