Business-Level and Corporate-Level Strategies: The Coca-Cola Company
Business level and corporate level strategies
This paper analyzes the business-level and corporate-level strategies of the Coca-Cola Company in order to identify the most important strategies which have contributed to its success in the past and can help it in competing effectively in the long run. An analysis of its competitive environment has also been done in a view to assess and compare the strategies which other industry rivals are using to compete in the slow and fast cycle environments.
The Coca-Cola Company
The Coca-Cola Company is the world's largest manufacturer and distributor of beverage products. It is an American multinational corporation engaged in the manufacturing, promotion, and distribution of a wide range of beverages; including soft drinks, fruit juices and sodas, sparkling energy and sports drinks, mineral water, soy-based beverages, coffees, yogurt drinks, and tea. The Coca-Cola Company has more than 3,500 products under 500 different brand names. Its top brands include Coca-Cola, Sprite, Fanta, Fresca, Minute Maid, Dasani, Mello Yello, Power Ade, etc. The company has spread its business network in more than 200 countries around the world which is supported by its 146,200 business partners and associates. The company claims to be serving 1.8 billion consumers every day. It owns four out of the five top seller beverage brands (The Coca-Cola Company, 2013).
Business-Level Strategies of the Coca-Cola Company
The Coca-Cola Company uses the following business-level strategies for its local and international operations:
i. Differentiation Strategies:
Differentiation strategy is used by a firm to operate in its industry in a unique and competitive way (Hitt, Ireland, & Hoskisson, 2013). Since its inception in 1886, the Coca-Cola Company has always focused on differentiating its products from those of its competitors in order to establish a unique position in the Global beverages industry. Its top most brands like Coca Cola, Sprite, and Fanta are manufactured under strict quality standards and by using unique formulations. With the help of its differentiation strategy, the Coca-Cola Company is able to maintain the top market leadership position. Differentiation is found in each and every aspect of its business operations. For example, it uses unique marketing campaigns, labeling, bottle shapes, and advanced plant and machineries to manufacture the top quality beverage products. It also keeps on introducing different flavor variations in its existing products so that consumers can taste and enjoy a wide range of beverages from their favorite brand (The Coca-Cola Company, 2013).
ii. Low Cost Leadership:
In addition to delivering the top quality products, the company also keeps an eye on its increasing operational and marketing expenditures. It recognizes the importance of cost control for gaining competitive advantage in the industry and operating in a more profitable way. Therefore, the low cost leadership is one of the major business level strategies the Coca-Cola Company has been pursuing since its incorporation. It strongly emphasizes on internal efficiency so that its products can be manufactured at the minimum possible cost (Hitt, Ireland, & Hoskisson, 2013). Although the Coca-Cola Company has a wide array of products, there is high level of standardization in their manufacturing processes, packaging, and marketing. It has maintained a tight control over its manufacturing, overhead, marketing, and R&D costs (The Coca-Cola Company, 2013).
iii. Focus Strategy:
The company uses focus strategy in both low cost and differentiation dimensions. For its focused low-cost strategy, it has defined a specific line of beverage products through which it can target a specific market and achieve low cost by manufacturing these products under highly efficient manufacturing processes. For example, its top most favorite brand, Coca Cola is manufactured and promoted under focused low cost strategy. Coca-Cola is sold in more than 200 countries of the world, but has slight variations in its taste, flavor, and ingredients. The company produces its Coke for every target market at a large scale in order to achieve low cost leadership in that market. It keeps that target market under complete focus while designing its marketing campaigns and selecting distribution networks so that it can serve the potential consumers from that market in the most effective and efficient way (The Coca-Cola Company, 2013).
The Most Important Business-Level Strategy for the Coca-Cola Company:
After analyzing all these business level strategies of the Coca-Cola Company, it can be said that the most important strategy which has largely contributed towards its success in the past and will continue to deliver a competitive edge in the future is its differentiation strategy (Hitt, Ireland, & Hoskisson, 2013). The Coca-Cola Company's products are recognized for their unique taste and value proposition. If...
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