Coca Cola is the leading manufacturer, marketer and distributor of soft drinks in the world. With domestic market nearing saturation, the potential for growth lies in international markets. In recent years, economic, political and social changes have made the global environment more uncertain, forcing Coke to reevaluate its strategy, structure and culture to maintain a competitive advantage. The following is a dynamic analysis that tracks the evolution of Coke’s strategy from global standardization to a multi-domestic strategy that emphasizes national responsiveness.
During Goizueta’s management term, Coke is already a large, mature company in the formalization stage of its life cycle and in the international stage of global development. The organization’s official goal is to dominate the global beverage market and maintain its market leadership position over Pepsi and other competitors. Its primary operative goals are productivity, efficiency and profit. Coke is a highly formalized, centralized organization with a clear hierarchy of authority and a mechanistic management process. Employees believe in the supremacy of the product, and the company’s rigid, heavy-handed culture helps maintain control and drive aggressive marketing and expansion plans. Given the steady consumer demand and low uncertainty created by the simple/stable environmental dimensions, the vertical structure is appropriate because it provides management with high degree of efficiency and control. Coke’s effectiveness is a result of the synergistic fit between its structural and contextual dimensions.
Coke realizes economies of scale/scope and low-cost production from a globalization strategy that enables product design, manufacturing and marketing to be ...
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...our product categories. With greater distances between regional units, Coke needs to establish more global coordination mechanisms such as transnational teams and functional managers to link resources, disseminate knowledge and bring products to market faster. To ensure that regional units don’t act too autonomously, headquarters needs to develop unified plans and procedures to ensure control and coordination. With more differentiation, Coke’s challenge is to stay competitive in new product categories without weakening the flagship product or diluting its brand image. Looking to the future, Coke should consider moving to a transnational model, which would transform the organization into a network of interdependent global operations that work together to achieve multi-dimensional goals by simultaneously achieving efficiency, national responsiveness and shared learning.
Advancement pursued by Coke has relied heavily on expansion efforts throughout the globe and within the United States. Elmore describes one particular case example relating to Coke’s drive for increase presence when he states later on in the book that the Coca-Cola corporation created a Foreign Department for the purpose of international marketing. Heavily promoting the economic benefits that accompany the importation of Coke, a task force of five members were appointed to persuade officials overseas to bring the Coke product to their country. Commonly poor countries were preyed upon falling victim to Coke’s ploys, and promise of economic growth allowed Coca-Cola to move production operations throughout the world. Communities deprived of the natural resources to endure Coke’s presence suffered most from the expansion, yet Coke had no regard other but for themselves. Elmore reasons how goals of cutting costs for Coca-Cola have been achieved through exploiting countries on behalf of their own private
Coca Cola is more interested in penetrating all markets and is willing to invest heavily in areas that will support distribution to emerging markets like South Africa. Coca Cola does this by establishing bottling plants as close to their consumers as possible. This puts the production and distribution (and jobs) directly in the hands of the local territories; this allows communities to be invested in the success and distribution of Coca Cola. As an example; in South Africa they have the first all-Black managed bottling plant which has won Coca Cola a tremendous amount of respect and continues to perpetuate brand loyalty in that region. This Model has allowed Coca Cola to expand to 56 countries with 160 plants alone on the African
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
One of the Coca-Cola Company’s strongest strengths lies in its ability to conduct business on a global scale while maintaining a local approach, one of the most intelligent strategies thought up by the human resource department of Coca-Cola.
As we have seen, international marketing can be very complex. Many issues have to be resolved before a company can even consider entering uncharted foreign waters. This becomes very evident as one begins to study the international cola wars.
Coca cola has always dominated the markets outside United States unlike Pepsi’s internationalization strategy that took too long. Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
To handle the enormous scope of its business, the Coca-Cola Company has divided into six operating units: Middle and Far East Groups, Europe, The Latin America Group, The North America, The Africa Group and The Minute Maid Company. The head Quarter is in the United States. Methods of Research I will use The method of research which I will use is the secondary research, i.e. I have asked The Coca-Cola Company to send me their history and annual reports. I will also call The Coca-Cola Company office to ask some details, I will also use ask them some relevant questions (questionnaire method), interview the people on the high street and will do some research over the Internet. From those sources I am going to finish my all other tasks.
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
... objects and customer regions. Do making a clear differentiation image between its soft drinks and bottled water. Because the consumers may believe that bottled water of Nestle sounds healthier than Coca-Cola brand since Nestle tend to emphasize their image on healthy food products. Then do market test for new taste, new packaging, or new innovation according to each regions, and especially for Europe, the company should launch the new one to replace Dasani image in order to seize their market shares. They may renew all nutrients and packaging. Finally Coca-Cola should continue its joint ventures with the regional companies in order to protect their products from barriers to entry both international trade restrictions and distribution channels. Furthermore, joint venture with local brand is a long term contract guarantee to make it easier for HOD to a specific region.
The Coca-Cola Company was founded in 1892. Since its inception, the organization has seen a steady increase in its market share over the years, and to this day has operations in over 200 countries worldwide. To achieve such success in its competitive market, Coca-Cola has employed sound strategies that have helped it become among the leaders in its industry. The Coca-Cola Company utilizes Market Based Management (MBM) techniques as well as Value Driven Management (VDM) techniques within the organization and in its market to help the firm sustain its stronghold of the market.
Coca –Cola (KO) is one of the world’s largest beverage companies. Company was incorporated in September 1919 under the State of Delaware law and headquarters is located in Atlanta Georgia. But from 1886, company established its brand in US (Coca-Cola, 2012, p. 1). Currently company is providing for more than 500 varieties of non-alcoholic sparkles to the customers around the world. Apart from this, company also serve for still beverages that includes enhanced water, water, ready-to-drink, juices, energy drink, sport drinks and so on.
Coca-Cola has made a global mark on the world and a large portion of its success can be attributed to its marketing tactics a...
The Coca Cola Company has been among the world’s top companies that have been able to perform well in all the areas of the world. The company follows the latest strategic research and evaluation methods to formulate such strategic policies that helps in not only meeting the customer expectations and desires but also achieving various organizational goals and objectives.
Coca-Cola is a company with sustainable competitive advantage. The company is innovative and has an extensive business model with boasts of a sustainable distribution network. The company was incorporated in the late 1800s to commence the production of a sweet fizzy beverage that has become the world's most known brand. Presently, the company is still on an upward trajectory as it remains one of the world's most sought-after stocks. The company's competitive advantage has shown resilience and sustainability over the years.
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