The Coca-Cola Company is currently in a strong competitive position in comparison to its rival companies, dominating the carbonated soft drink market with a market share of 48.6 percent in 2015 according to Bloomberg. It is true that the firm’s annual report on Form 10-K shows a decrease of 4% in net operating revenues from 2014 to 2015 but the company still appears to be in a sound financial position with at 2% increase in volume of its beverage products, favorable product mixes in emerging markets, and a foreseeable increase in revenue from investments and recent acquisitions. Coca-Cola has distinctive competences in consumer marketing and distribution operations that are both likely to be sustainable. However, as seen in the case study and the company’s annual SEC report, the company needs to address the challenge of building an efficient organizational structure that will deliver the proper strategy for its international markets.
In order to craft and execute a winning strategy, we must first analyze Coca-Cola’s overall situation using a SWOT analysis and transform these conclusions into strategic actions. From a financial standpoint, the company continues to maintain a high market standing and a consistent financial performance over the past three years with an increase in stock price of $2.50 per share and the gross profit margin hindering at 61%. This indicates that their current overall performance is strong but their strategy has room for improvement. Percentage distribution of revenues and income from operating segments shows that foreign currency fluctuations and unfavorable product mixes are negatively impacting net operating revenues.
Coca-Cola, the iconic beverage company, has a long h...
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...e customers which in turn, will drive long-term profitable growth. According to the firm’s SEC filing, the volume and product mix rose 2% in 2015 which shows there is a huge opportunity for growth in the worldwide market share and throughout the firm’s operating segments.
In order to implement this strategy, Coca-Cola must strengthen its organizational structure. The company should consider improving its information technology and use it to develop their competitive strategies. This provides the ability to capture sales data, critically examine their performance and processes to improve operational efficiency, customer and supply intimacy, and enhance their competitive position in international markets. As a result, Coca-Cola will be able to rebuild its growth momentum while offering each operating segments different beverages that suits their taste and lifestyle.
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