The North American Industry Classification System (NAICS) code for the Coca-Cola Company is 3121 (U.S. Census Bureau, 2012). This NAICS code is used to identify Soft Drink Manufacturing. However, the icon Coca-Cola is not in this industry alone. The data of 2002 identifies 2,908 competitors in this category (U.S. Census Bureau, 2002). This NAICS code encompasses establishments primarily engaged in manufacturing soft drinks and artificially carbonated waters.
Although Coca-Cola has made its global footprint as a leading competitor in this market and they continue strategizing for long-term sustainable growth, Coca-Cola is innovative in their methodology and application to maintain one-step ahead of their competitors and is aware of the market’s increasing demand of product substitution.
The Coca-Cola Company, now over 125 years in existence, continues to maintain its competitive stance in the global market of beverage consumption. The goliath company’s continued growth may be demonstrated by its ability to 1) identify global awareness of market trends and consumer demand, 2) identify and comply with environmental and regulatory requirements/enhancements, 3) analyze the impact of innovative projects and identify how these external influences directly impact the strategies implemented thus reducing competitive rivalry and competitors ability to take the lead in product substitution.
Threats of Competitive Rivalry
Two major detriments to Coca-Cola’s strategy of expansion into non-carbonated beverages may be the impact of society’s recent economic uncertainty and increased health awareness. Such beverages may be considered luxuries. Although pricing might be competitive, in today’s economic uncertainty individuals may prefer a variety of beverages that offer better nutritional value vice purchasing Coca-Cola’s soda beverages. It is my opinion; Coca-Cola has strategically... [continues]
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