Coca Cola Management Strategy

The advancement of Cola wars has drastically changed the entire scenario of the soda industry. There are different giants participating in in this industry and Coca Cola is between them. The brutal opponents Pepsi and certain other brands are trying their level better to change the scenario of this industry by eating up market shares but Coca Cola's management strategy is so kept up to date and relevant that they are before their competition. From just one brand 125 years go the strategy of Coca Cola has strengthened so much they have launched more than 500 brands. The company originated from reselling 9 odd beverages in a day in 1886 to at least one 1. 8 billion every day in the current era. The business is continuing to grow at a massive pace and starting from just a single city to increasing its operations to more than 200 countries of the world (Coca Cola, 2012). The product actually initiated from a pharmacy and gained so much success after having a certain time period that it is regarded as one of the biggest brand of the world. New brands were added by this firm in their company products and after a certain time period almost all of the brands flourished as time passes (Coca Cola, 2012). But Coke is considered as one of the primary brand and flourished at a massive pace. The brand is continuing to grow so that a new terminology of Cola beverages actually came into existence because of this. Catering to the needs of the customer is the largest success secret of the brand. They know what the customer is really asking for and they supply the customer that in such a way that the needs are properly satisfied with it. The annals of the organization is quite abundant and they have travelled their way facing several leaps and bounds. Coca-Cola has the greatest valued product name internationally and, as one of the greatest apparent organizations globally, it has great potential client to outshine atlanta divorce attorneys scope of commercial performance (Ferrell, Ferrell, Fraedrich, 2011, p. 308). The business though has been confronted by many moral problems in respect with their shareholders. Uncertain about the company's widespread efforts to the modern culture and educational aspects, numerous shareholders are sacrificing faith in the 100 time old business. . . . . . . . . . . . . . . . . . . . . . . . .

Limitations of research

Every research has certain limitations and the intro depicts that the primary research would focus on the strategy management procedure for Coca Cola and talks about the situation that are utilized by the organization. The limits of research are initiated by the usage of secondary options in the research. The information are taken from these resources and it can't be properly commented that the information offered in these sources are hundred percent right. Additionally, another limitation of this research is that research should only be used for educational purposes and it will not be used for your choice making process for organizational goal. Within the similar manner it should be noted that this research is made by an individual and everything rights are reserved.

Organizational Strategy

Reviewing the strategic planning process that keep this business competitive in this industry are several factors that are associated with this organization. The biggest aspect is the actual fact the forming of a well established mission and vision. Within the similar manner one may easily say that the strategic decision considered by the management are aligned with the eye-sight and mission of the organization (Hill & Jones, 2012). The objectives were created so professionally that they are achieved within the stipulated deadline so that they organization achieves success in both the short and the long term.

The objective of the organization revolves around the scenario that they need to refresh the world in body, brain and spirit. In the similar manner their targets concentrate on the circumstance that they ought to create a difference in almost everywhere they participate (Sevenson, 2001). The ideals of this group derive from leadership, diversity, interest, integrity, collaboration, quality etc. Strategists and decision creators usually declare that the global strategy of the company is so enormous and gigantic because of the effective decision makers in the organization. Their strategy is sufficient because the business is reactive internally and externally. The become successful atlanta divorce attorneys form because they're aware of the culture of these organization plus they make an atmosphere in their business which results in a win-win situation (Hill & Jones, 2012). The cooperation of all the stakeholders that are inner and external generates and great fusion for Coca Cola and that is the reason why it is regarded as the brand with the best degree of brand equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The competition in the soda industry is quite fierce because of two massive brands that happen to be Coke and Pepsi (Dana 1999). The competition between these two brands is referred to as the "Cola Wars". Coca Cola is considered to be the leader of the industry and Pepsi is usually criticized by the marketing strategists as the brand that utilizes the imitating strategy. The current situation is so complicated for both brands because in order to attack the market leader Pepsi must have a unique plan or a sustainable competitive edge (Mazze & Michman, 1998). The strategies with respect to target market and introduction of an sub brand on the market of both the organizations are relatively the same because both the organizations are striving hard to fully capture the market share in order to become the market leaders in the Cola industry. Pepsi's market show in Asia is a lot more than Coke however, besides Asia Coke catches the whole world and this strategy of Coke has considered Pepsi by way of a storm. The Cola are virtually fought in nearly every country of the world and company with a highly effective strategy is victorious the contest (Boutzikas 2000). Each brand is preventing the battle with different brands and both own several non-alcoholic brands to obtain a share in customer's belly. Since the competition is becoming more and more vibrant with the advancement of time and that is the reason why the arena is become much fuzzier and for that reason reason the rivals are much difficult to identify and anticipate (Day & Reibstein, 2004).

Organizations usually study from their past errors and that is the reason why they develop a learning habit to handle any external and inside issues (Vrontis, 2003). Coke made a marketing research blunder which dipped the competitive graph of these brand and they were sinking in the competitive battle with other brands. Coke, anticipated to blind tests changed the style of the Coke and developed a method to make it sweeter. This strategy backfired quiet badly and people began to dislike the name new coke and after a certain time frame they started to dislike the flavor too. About $ 4 billion were spent on this campaign and it came out to be always a blunder for the business (Axson, 2011)

Review of the Literature

The current aims of this group are to use the formidable possessions of the company that is their brands to its full potential and attain a lasting competitive advantages through globally achieving the maximum customers. There are many different strategies that are opted by Coca Cola to attain sustainable expansion.

For analyzing the effectiveness of employed business strategies by the management at Coca Cola Company, critical analysis of current market status of the business has been talked about subsequently.

SWOT Analysis of Coca Cola Company

For strategic analysis of the Strengths, Weaknesses, Opportunities, and Risks which any group, project, or a business enterprise arises with, SWOT Evaluation is often used. Primary aim behind the conduction of SWOT Analysis is to exhaustively identify what inner as well as external factors are favorably or unfavorably influencing the development and development of any business (Champman, 2007). Within this section, Coca Cola is the undertaken company for the explanation and evaluation of SWOT.


Globally, the Coca Cola Company has following key aspects as its business talents

The brand image and equity allied with the company is internationally recognized

The brands and products of the business are strategically distributed across the world by means of strong and effective distribution network

The overall financial performance of the company is relatively higher than its competitors

Coke is internationally recognized, acknowledged as well as the utmost preferred brand for soft-drink lovers.

The product-line from the company's brand is extensively diversified

Strong and reliable corporate identity.

Continues development and improvisation in business plans and strategies


Coca Cola has pursuing weaknesses on international grounds

Despite of experiencing remarkable financial performance of the company, it includes high list in credit ratings

Continuously diverging customer concentrations credited to other brands in competition, specifically in US.

Customer commitment towards Pepsi products, which is the largest and the most powerful contender of Coke surrounding the world.

In Parts of asia, like India and Pakistan, Coke failed to acquire #1 position in soft-drink industry.


Coke Company has pursuing significant opportunities world-wide

The tremendously escalating demand of carbonated drinks all over the world.

As company has broadened its protected market areas by adding brands of mineral normal water, juices, soft-drinks etc, it can reach nearly every market segment.

Increasing globalization will allow Coca Cola to acquire certainly globalized business operations

Health Conscious People are being catered

Drastic expansion in mineral drinking water demand

Smaller market players' acquisitions.


Following business risks are being experienced by the company

Since soft-drinks are considered to be detrimental; in such scenarios, healthy drinks usually created by the JUICE Companies are imposing business risks to the Coca Cola Company, worldwide.

Customers' increasing inclinations towards critical competitors (like Pepsi, etc)

Growing financial meltdown and thus, prices of products

Biased image perceptions in several countries of the world.

BCG Matrix for Coca Cola

BCG Analysis means for Boston Consulting Group Evaluation. The idea of BCG Matrix was firstly put forward during 1970 by Bruce Henderson for the Boston Consulting Group with the intentions of helping companies in their business evaluation practices based on their business units or product lines (Middleton, 2003). BCG research is recognized as an analytical tool for marketing of brands, product management, strategic management, and profile analysis. All in all, it can help organizations to allocate their business resources.

Components of BCG Matrix: To raised understand the analytical techniques found in BCG matrix, its core components are identified in the section below

1. Stars

Representing the highly developed business with strong market position and financial performance as compared to its competitors. Businesses scored under this category are considered to be ideal with high stocks points.

2. Cash

Businesses having low expansion rates but higher point stocks are recorded under this category of BCG Matrix. It is assumed that the firms noted in this category were at first stars but somehow didn't maintain their elegance as time passes.

3. Question Mark

Businesses having high rates of progress and development but, their point stocks are low, are noted under this category of BCG Matrix. This category is the reflection of certain potentials that business has for future development and development but, at the same time, indicates the requirement of extensive work to increase point stocks.

4. Dogs

In this category, businesses have both low point show as well as low rates of expansion and development.

A basic representation of BCG Matrix is given in the shape below

Figure 1: The BCG Matrix (Source: Middleton, 2003)

As significantly as Coca Cola Company can be involved, the BCG Matrix research for the business is based upon following reports

Figure 2: Coca Cola's Performance from all around the globe (Source: Ahmad et al 2007)

On the basis of afore-mentioned statistical analysis of Coca Cola Company, created BCG Matrix for the company is given below

Figure 3: BCG Matrix for Coca Cola Company (Source: Ahmad et al 2007)

Porter's Five Pressure Model for Coca Cola

For carrying out industrial evaluation, The Five Force Model presented by Michael Porter in 1979 is being used as the de facto platform because the time of its release. The competitiveness of market is examined by Porter's five pushes. The existing or potential dangers a company can have from its associated industry are concluded by professionals after employing this model. Following five forces are contained in Porter's model (1) Threat of New Entrants, (2) Threat of Substitute Products, (3) Bargaining Ability of Clients, (4) Bargaining Vitality of Suppliers, (5) Competitive Rivalry among Existing Organizations.

The industrial analysis of Coca Cola Company and its own brands based on this five-force model is mentioned below

Threat of New Entrants/Probable Challengers: Median Pressure

As far as drink industry can be involved, the barriers to the new entrants are relatively low because the price of consumer switching in this specific industry is around no with quite low requirements for capital investment funds. A number of new products have been created on the market at relatively lower prices than that of the products and brands of the Coca Cola Company.

Threat of Substitute Products: Median to high pressure\

The consumer market segments have a variety of alternative products for soft-drinks, energy-drinks, juices and mineral water. It really is an open idea that Coke products lack any unique flavour because its flavour is 97% similar compared to that of Pepsi as concluded during a blind style test, where people failed to distinguish Coca-Cola coke and Pepsi coke.

The Bargaining Power of Clients: Low pressure

As significantly as bargaining vitality of consumers is concerned, Coca-Cola and Pepsi, which is Coca-cola's biggest rival, have almost same market price thus, it offers very little or even 0 pressure on the company. However, newly introduced, low-priced drinks are available in markets that can be preferred by the consumers but at the chance of taste and quality. Fruit juices are the most preferred drink for the consumers nowadays as most of the consumers have become health conscious and thus are aware about the adverse influences of carbonated drinks.

The Bargaining Power of Suppliers: Low pressure

In circumstance of Coca-Cola supplies all around the globe, its suppliers aren't worried about the adverse influences of such carbonated drinks as they can not afford dropping Coca-Cola, which is considered as their fundamental client.

Rivalry Among Existing Companies: High Pressure

Pepsi is the largest competition of Coca Cola recently as it also offers variety of drink products with strong international network. Pretty much Pepsi and Coca Cola are scored similarly in every around the world. However, the prospective market of Coca-Cola, as per its classical brand image, is the adult community mostly; however, children are being concentrated by the Pepsi group. Nonetheless, the show market of the united states is just a bit dominated by Coca-Cola alternatively than Pepsi because of its historical business set up. Alternatively, drink brands, like Dr. Pepper, have also recognition in US for the reason of their unique flavors.


If Coca Cola Company manages to help make the most creativity for creating relationships and gaining market reputation, the business can easily kept all the opponents behind and can stay ahead of them in one way or other.

Innovation could possibly be the to start with option for the company to avoid severe market competition. By employing innovative ideas, the company is likely to have strong competitive edge with respect to its rivals. As a matter of fact, Coca Cola has certain market reputation as well as strong brand image; so, with appropriate development in products by keeping customer needs at entrance, the company can generate certain attention among its potential consumers so that people will definitely want to go for it. If Coca Cola arises with ground breaking products, consumers will leave with no substitutes and therefore, they will gladly purchase the item even at higher prices. With this strategy, Coca Cola can create a variety of dedicated customers as well (Covering S1, S2, S4, S5, S7, T1, T2 and T3).

After technology, marketing is the most important factor to be mulled over by the supervision of the company to keep its prominence around the world. Marketing is recognized as the backbone for just about any business success and thus, is extremely significant factor for the company. Coca Cola can affirm its long-lasting market prominence and reputation by marinating strong brand image through strategic advertising of allied products. This strategy will also help the business in retaining strong consumer commitment towards its brands and can gain consumer tastes over its competitors (Covering W2, W3, W4, O1, O2, O3, and O4).

Marketing within an environment friendly frame of mind can definitely help the business to impose certain barriers to the new market entrants and thus can reduce the risks and hazards of growing competition in the relevant industry worldwide (Covering T1, T4, T5, S2, S4, S5, and S6).

If Coca Cola brands have the ability to maintain their quality and preference in such a way that these two factors surfaced as unmatchable for rival companies, Coca Cola can reduce severe hazards to be substituted (Covering S1, S4, S2, O1, O2, and O3).

Coca Cola Company miss-utilized sources of rare water in various Asian countries, like India and Pakistan, which serve as the principal reason of company's declining market reputation in this specific region. This mis-utilization adversely impacted the brand image of the company, as the reducing water levels in cola plant are certainly making the lives of the natives unpleasant. To get positive reputation in the Parts of asia Cola Company can follow the procedures listed below

Land inspection before starting any project

Assessment of environmental influences that the task can have prior to start up business operations

The job should be compliant with environmental regulatory requirements

Say "NO" to refrigeration accessories containing CFC

Efficient treatment of waste products water

Adequate businesses for bottling

Commencement of certain programs for energy conservation

Latest technology for drinking water recycling system should be used by the company for conserving 50% of drinking water requirements for the operations (Covering W3, W4, and T4)

With recycling of plastic containers, costs and resources could be saved. By using various impressive recycling ideas in company's business along with appealing advertising of Coca Cola brands can open new market segments for the business. In credited course, company will have higher revenues and improved credit history (Covering W1, W4, T1, T3, and T4).


This paper attempted to analyze the strategic business planning of the Coca Cola Company exhaustively. The study affirms that company is at its booming stages and is enjoying profitable success and reputation all over the world. However, from a superficial overlook, the afore-mentioned truth might be looked at as "true;" but, in-depth examination of what business strategies the Coca Cola company has, evidently demonstrates the lifetime of certain loopholes due to that your company is exposed to certain risks and market threats. Despite the fact that company has god market reputation, but ground breaking and unique brand ideas are required to be practiced so that the credit rating of the company could be improvised. Furthermore, it was also concluded that due to severe market competitions, the business should put much emphasis on its advertising techniques in order to make its market prominence even more noticeable. Last but not minimal, Coca Cola company has failed to comply with the health requirement rules in specifically Parts of asia which provide as the reason of its declined reputation for the reason that particular area. Thus, company must put much focus on this domain to reduce negative consumer perceptions and to make them dedicated with the brand and products.

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