Sunday, December 8, 2019
Strategic Global Business and Competitive Coca Cola
Question: Discuss about the Strategic Global Business and Competitive Coca Cola. Answer: Introduction: Coca cola is leading among the soft drink companies in the world, selling sparkly and still drinks. The company makes around 60% of its income and around 80% of its operational revenues from its divisions outside the United States having the most solid brand known all over the world. Liquid refreshment business brands market space is composed of the fruit beverages, energy drinks, sports beverages, bottled water and ready to drink tea and coffee(Feloni, 2015). On a scale basis, coca cola controls the largest market space. The products outstanding performance cannot be over highlighted.it stands out amidst all states and channels. Coca cola is not only the leading liquid refreshment beverage in the United States but also tops the global rankings in soft drinks, this is based on the product value. The brand also has the second highest number of fans on its Facebook page.(Bhasin, 2016) The most important factor for global companies is that they are able to find the correct combination of local and universal in their processes. The coca cola company is universal, yet the company is still locally relevant. The company may be giving their customers the same happy messages, the same product may be communicated to the clients but it is still done in a different manner in different countries(David Butler, 2015). Coca cola boasts of being a franchise structure. The bottles are sourced locally. For instance in Turkey, there are Turkish bottlers, in Kenya, coca cola bottlers and much more. This means that the success of the business depends on the value of the relationship the company has with the bottlers and the companys brand. To manage franchise relations, as a company, you have to have a geographical positioning. Worldwide, Coca-Cola Company has five functioning groups, Latin America, North America, Europe, Pacific and Eurasia combined with Africa(Vrontis, 2003). The juice franchise at the same time has necessitated a change in managerial structure, as compared to the sparkling drinks business. Raw materials are expensive with prices not being constant and there is an opportunity for the business to innovate faster. For instance, the company is capable of introducing four to five variances of their juice in a particular year. Thus, a matrix exists. In Atlanta, the company has a functional group which is responsible for juices globally, but still work through the topographical organizations(Vaid, 2015). The company has come out to state categorically that the franchise is still developing in a bid to finding the best indigenous and worldwide combination that will work for them. The companys relationship with the bottlers is local, decisions are made within the local context, quality standards are local (adhering to government standards). The company however has its own international, severe quality control criterions(Bhasin, 2016). The company stresses a collaborative process in its way of doing business to minimize conflicts and make decision making easy. There is a strong thread of uniformity among all the areas and all these regions remain linked to the head team in Atlanta through the investment and marketing societies. The company projects using todays demographics that in the year 2020, half of the changes will be in Eurasia and Africa, teenagers numbers will grow, urbanization and new players in the middle class. The consumptions of beverages are very low in these nations with South Africa recording about 250 drinks in a year for a person. This is above the international average. For Turkey, it is slightly higher than 150. The company strategy is to grow its Coke brand with its consumers locally(Vrontis, 2003). This the company achieves through the correct pricing, packaging, with smaller and larger packs, or take away packs. The company also places new coolers in the marketplace, then invest in people who activate the channels one by one. This is successful because in some of the markets coca cola has gone into, water and juice businesses flourish but tea and energy drink market is still emerging(Khanna, Palepu, Bullock, 2010). SWOT analysis Strengths Brand consciousness: The Company has marketed itself well and is one of the brands known globally. This is due to its signature logo. The company also has a large number of factions who incline not to move to other brands(Khanna, Palepu, Bullock, 2010). Delivery network: Its supply network also makes its products accessible to customers in more than 200 nations. Weaknesses Water managing: water is still a limited resource in some countries, yet still the major ingredient for Coca Cola Company. Many factories use water to make their products. This resource is also useful to the communities. These actions escalate the danger of pollution and poor managing. Variation in foreign exchange: the company gets revenue, pays expenditures and suffers liabilities in countries that do not use the US dollar(Vaid, 2015)r. Opportunities Diversification: the company has been working hard to figure an existence in the quickly developing beverage classes. It owns 16% of Keurig Green Mountain currently and still developing a fresh Keurig Kold device set to debut later on. Coca Cola also procured 17% stake in Monster drink. Threats Healthy choices: a cultural change towards natural and organic foods has steered many to go for dietary waters and other healthy beverage selections. This means that coca cola products with high quantities of sugar and sweeteners have fallen out of approval with several people. This trend is not likely to end soon because consumers are becoming more conscious about dieting. Incidental rivalry: minor franchise and retail shops offer clients healthy substitutes for carbonated drinks hence placing a cavity in the companys marketplace. Industry statistics suggest that clients will continue to be dragged away from rudimentary beverage selections in favor of customizable selections with greater nutritional value(Magretta, 2012). Conclusion Even though the company faces many challenges, it still possesses a pronounced deal for the future. Its financial resources, size and influence have it well placed to take benefit of valuable acquisition goals. The establishments brand charm and cut like following to ensure that the company will remain a top tier liquid refreshment supplier in years to come. Its massive delivery system should facilitate better capacities in the future and accomplishment in in mushrooming markets. All said, investors who are conservative and want a consistent source of revenue and a bit of investment achievements acquaintance might want to give the coca cola company a glimpse(Vrontis, 2003). References Bhasin, H. (2016, June 29). Marketing 91. Retrieved September 14, 2016, from Marketing Strategy of coca Cola: www.marketing91.com/marketing-strategy-of-coca-cola/ Center, P. (2014, October 21). Press Releases. Retrieved September 14, 2016, from The Coca-Cola Company Announces Actions To Drive Stronger Growth: https://www.coca-colacompany.com/press-center/press-releases/the-coca-cola-company-announces-actions-to-drive-stronger-growth David Butler, L. T. (2015, February). How Coca-Cola Learned to Combine Scale and Agility (and How You Can, Too). Design to Grow, 230-256. Feloni, R. (2015, June 12). BUSINESS INSIDER. Retrieved September 14, 2016, from 7 briliant strategies Coca-Cola used to become one of the world's recognizable brands: www.businessinsider.com/strategies-coca-cola-used-to-become-a-famous-brand-2015-6 holstein, w. j. (2011, November 7). Wharton University of PENNSYLVANIA. Retrieved September 14, 2016, from strategy+business: www.strategy-business.com/article/00093?gko=f3ca6 Jurevicius, O. (2016, March 31). Strategic Management insight. Retrieved from Coca Cola SWOT analysis 2016: www.strategicmanagementinsight.com/swot-analyses/coca-cola-swot-analysis.html Khanna, T., Palepu, K. G., Bullock, R. J. (2010). Winning in emerging markets : a road map for strategy and execution. Boston: Harvard Business Press. Magretta, J. (2012). Understanding Michael Porter : the essential guide to competition and strategy. Boston: Harvard Business Review Press. Marcus, A. A. (2010). Management strategy : achieving sustained competitive advantage. New York: McGraw-Hill Higher Education ; London : McGraw-Hill [distributor], 2010. Michael Gomez, W. R. (2012, November 8). Coca-Cola: International Business Strategy for Globalization. The Business and management Review, 3(1), 155-163. Vaid, S. (2015, may 10). Coca Cola Case Study. Retrieved September 14, 2016, from International Business Strategy Coca-Cola.: https://www.slideshare.net/vaidsanjay/international-business-stratedgy-cocacola Vrontis, D. (2003). The Strategic Positioning of Coca-Cola in their Global Marketing Operation. The Marketing Review, 289-309.
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