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STRUCTURE:
1. The Coca-Cola Company as a world leader
2. Strategic Positioning of Coca-Cola
2.1. Operating globally vs. acting locally
2.2. Coca-Colas distribution model
2.3. Differentiation strategy vs. cost leadership strategy
2.4. Margin vs. volume strategy
2.5. Segmentation: broad coverage strategy vs. focus strategy
2.6. Growth strategy
3. Conclusion
As the three leading companies account for 76% of the total market share, this indicates that
the concentration in this industry is high, meaning that only a few companies have a very
high market share. The Coca-Cola Company currently amounts to almost 50%, and is thus
market leader with a large lead to its competitors. Consequently, the reasons for the
companys international success are to be analyzed.
then. The most common products are Coca-Cola, Coca-Cola Zero, Sprite, Fanta, Diet Coke
and Dasani. The Coca-Cola Company encompasses more than 500 sparkling and still
brands. On top of that, Coca-Cola produces fruit juices and sports drinks in order to offer
many differentiated products. Nevertheless, the emphasis on the soft drink industry has
helped Coca-Cola to become a quality provider.
But there are several other specials that The Coca-Cola Company offers, such as the Share
a Coke with label. These are personalized bottles with names or nicknames on it.
Although this special does not have to do anything with the quality of the drink itself, it is
regarded as a nice extra for many customers. Besides, the product is customized a little bit
this way.
Apart from that, The Coca-Cola Company sells its products at a slightly higher price than its
competitors, such as Pepsi-Cola. However, since Coca-Cola offers a clearly higher benefit
than its rivals, customers are willing to pay the higher price that is still comparable to other
carbonated soft drinks suppliers prices. The main aim of Coca-Colas pricing strategy is that
customers
perceive
the
products
as
different
but
still
affordable.
years.
Afterwards, it was even launched into foreign markets and competed on an international
level. Internationalization can always be regarded as a market development strategy since a
firm
enters
new
market.
However, the foreign markets evolved further, meaning for Coca-Cola that it also had to think
about how to further penetrate them. They solved the problem by simply modeling new
products, namely Diet Coke, Fanta and Sprite, and thus followed also a product development
strategy after some time.
Although Coca-Colas business was originally reduced to the carbonated soft drinks market,
the company has finally chosen to broaden the definition of its business into ready packaged
liquid refreshments. Therefore, The Coca-Cola Company was able to enter markets such as
bottled water and fruit juices. This means they have successfully used a diversification
strategy.
Apart from that, The Coca-Cola Company has followed an external growth strategy by doing
several acquisitions. In 1960 Coca-Cola acquired Minute Maid, followed by Thums Up in
1993 and Barqs in 1995. Later Coca-Cola implemented further acquisitions like the one of
Odwalla and Fuze Beverage. In 1982, the company even purchased the movie studio
Columbia
Pictures,
which
it
sold
to
Sony
in
1989.
3. Conclusion
How Coca-Cola succeeds in holding the leading position in the global carbonated soft drinks
market can be answered with the results of the strategic positioning analysis.
The company has proven doing well in finding the best combination when it comes to the
challenge of meeting demands of local tastes and cultures. It does not only communicate its
global brand strategy differently in each country but also delegates decision making to
individual markets. And all this while having the core activities controlled centrally.
What also contributes to Coca-Colas enormous growth is its differentiation strategy.
The company is aware
products
of
superior
of
the fact
quality
with
that it
a
is not
higher
enough to offer
benefit
for
the
different
customers.
to
competitors
products
in
the
same
market.
Finally, it can be deduced that Coca-Cola is aware of constant changes in the market, such
as customer preferences, and does not sleep. It reacts to these developments in time and
permanently does efforts to grow. This can be seen when it is referred to Ansoffs matrix.
After having penetrated the home market Coca-Cola started to internationalize and
when
it
noticed
changes
in
tastes
it
evolved
new
products.
Sources:
http://www.strategy-business.com/article/00093?pg=all
http://www.coca-colacompany.com/brands/the-coca-cola-company
http://softdrinkcolawar.blogspot.com.es/2012/12/coca-cola-pricing-strategy.html
http://www.academia.edu/389600/The_Strategic_Positioning_of_CocaCola_in_their_Global_Marketing_Operation
http://en.wikipedia.org/wiki/The_Coca-Cola_Company
http://yourbusiness.azcentral.com/marketing-mix-coca-cola-12969.html