Strategic Analysis for Coca Cola (Individual Paper)
Since its beginning in the spring of 1886 Coca-Cola has become the most popular and biggest-selling soft drink company in history. The Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of non-alcoholic beverages in the world. As a global leader in the beverage industry, the Coca-Cola Company further indulges in enhancing their value propositions as an instrument to create ‘virtuous cycles of geographic expansion’ and thus greater advantage. Coke, owns the most important elements of the value chain or the “globally leverage able intangibles” such as the brand, the technology, the management, the marketing expertise and the relationships. Being a primary advocate of value-building in the beverage industry, Coke converged with different value-added activities. Within the Coca-Cola system that is consists of suppliers, bottling partners, customers and consumers, one of the primary value-added activities which is the Coca-Cola Retailing Research Councils, such contributes largely on the value chain of the company especially on the aspect of innovation and product development. Soft drink industry is divided into two segments namely production of soft drink syrup and manufacturing and/or distribution of soft drinks in retail level. Coke chose to concentrate their operation on the first segment while intimately depending on independent bottlers companies. Basically, the company is engaged into blending raw material ingredients (product planning), packaging in plastic canisters (market research) and shipping to bottlers (advertising). Rivalry condition is concentrated on two main players – Coca-Cola and Pepsi Cola – thus, the emergence duopoly competition or the “Cola wars” . Existence of substitute products is wide and thick and substitute products for Coke reached the market where Coke has a strong presence. Apart from the primary rival (PepsiCo), the company finds intensified...
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