Corporate level strategy of coca cola. Corporate Level Strategy The corporate scope of the activities of the Coca Cola 2022-12-12
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Coca-Cola is a globally recognized brand and one of the largest and most successful companies in the world. As such, its corporate level strategy plays a significant role in its overall success.
At the corporate level, Coca-Cola's strategy focuses on expanding its reach and increasing its market share through a variety of methods. This includes acquisitions of other companies, partnerships with local businesses, and the introduction of new products.
One key aspect of Coca-Cola's corporate level strategy is its focus on diversification. The company has a wide range of products, including carbonated beverages, sports drinks, juices, and teas, which allows it to appeal to a diverse customer base. In addition, Coca-Cola has a presence in over 200 countries, making it a truly global company.
Another important aspect of Coca-Cola's corporate level strategy is its focus on sustainability and social responsibility. The company has implemented a number of initiatives to reduce its environmental impact, such as increasing the use of recycled materials in its packaging and investing in renewable energy. Additionally, Coca-Cola has a number of programs in place to give back to the communities in which it operates, including education and job training initiatives.
Overall, Coca-Cola's corporate level strategy is centered on expanding its reach, increasing its market share, and being a responsible and sustainable corporate citizen. These efforts have contributed to the company's continued success and have helped it maintain its position as a leader in the global beverage industry.
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One of the ways is by a firm considering a product design that does not attract extra costs especially where alternative materials can be used Magretta, 2009. Indeed, the Coca-Cola Company initially limited its activities to the manufacturing of concentrates and to the marketing of the final beverage. The corporation has used a number of techniques, including corporate and business-level approaches, to overcome the challenges of today's business world and maintain its market position. Paper Presented at the International Trade and Academic Conference Research, 3 1 155-169. Products developed by the Company are sold through bottlers, fountain wholesalers and distributors around the globe. Socio-cultural factors More health-conscious individuals are shunning these conventional fizzy drinks for more natural products in a fashion euphoria sweeping in many industries globally.
Ideally, the company operates an international differentiation strategy where it offers the product depending on the local setting in emerging markets. The brands that the company produces are highly carbonated sugar drinks that are slowly losing market share, with more consumers aligning towards healthier options. Through its distribution channel, the company makes sales of about 2 billion unit cases distributed all over the 28 countries across the three continents that the company operates. For instance, following the growing Chinese beverage market, PepsiCo recently established a strategic alliance with Tingyi in China so that it can tap into the market. At the heart of everything lies data, and our recent organizational changes have set us up to leverage data across the enterprise as well as the system. Through differentiation strategy, the company makes unique and valued products for its customers. Read also Globalization strategy This is another significant corporate business-level strategy.
Moreover, the industry is also expected to experience a decline in the future owing to the health concerns that inform healthy eating. In 2006 according to the New York Times, the company recorded a 22% fall in profits. Coca-Cola and every last bit of its connected items are associated with standardizing and playing around with relatives and companions. This, in turn, helps it to limit direct costs so that it can achieve organic growth. This way, foreign customers can relate to the company at a personalized level. Secondly, the company enjoys a large economy of scale.
Strengthening the Competitive Position With the increase in competition in the soft drinks industry, the Coca-Cola Company had to come up with a complimentary strategy to reinforce its already strong competitive strategy. This way, brand awareness is enhanced globally and thereby creating strong brand equity that subsidizes future marketing expenditure. However, if vertical integration was adopted that sought to buy out these bottling companies, and then the company would be fully responsible for the quality of its products. Significant competitor Following an analysis of the competitive environment, the most significant competitor of Coca-Cola is PepsiCo Inc. Ideally, the company utilizes a different strategy for different parts of the world.
This has been mainly due to decreasing consumer power as inflation and employment tends to reduce consumers real income and disposable income. Intelligent experimentation goes beyond new flavors and brands — it also includes product, package and process. In effect, the company should consider harmonizing these salaries so that the pay does not show such a significant disparity among genders. Some of the products that it is associated with are Coke, Sprite, Fanta, Minute Maid and Kinley Afzal, 2010. I would advise that the company diversifies into the area of non-carbonated soft drinks and other health drinks to keep up with the new consumer trends. Today, we have a strong global position in all category clusters in nonalcoholic ready-to-drink NARTD beverages.
Further, the present brands have a very strong image and markets. Coca Cola Goals Essay Conclusion The operations of the Coca-Cola Company are directly aligned with its strategy. Besides, its goods have a non-price attribute, and hence don't attract premium payments from customers. The pandemic allowed us to accelerate our digital transformation and evolve into an organization that can execute its marketing, commercial, sales and distribution strategy both in the on-line digital world as well as in the physical world. As a result of the previous diversification success, I suggest that the company undertakes diversification in the same line of business specializing in non-carbonated beverages.
Indeed, the company moved from its initial Direct Store Delivery, in which bottlers deliver to stores directly and are responsible for managing shelf space, to a more centralised distribution system using warehouses. Coca-Cola said net income for the third quarter, which ended on Sept. The company's marketing and labeling strategies have always stood out. Coca Cola uses absolutely all existing means for communication on a massive scale for their products to reach an indeterminate public and integrated into a… Coca Cola Hashtag Analysis The main approach to achieve this is associating happiness with the product. Having started its operations more than a hundred years ago, the company has gone through different challenging times of economic prosperity and depression, and war and peace. On the other hand, it meets the needs and expectations of young consumers by providing vanilla coke and cherry coke, which are flavored and PowerAde products of Coke Coca-Cola, 2013. Correcting these figures to the present shows that it is quite costly to set up plants; hence the cost restriction limits competition among bottlers; hence they yield high power on other companies seeking their services with very few alternatives.
The remaining 25 per cent consists of well known soft drinks such as Sprite, Fanta, Fresca, Mello Yello, Surge, POWERaDE, Barq 's Root Beer and many other brands. Source for value share positions: Euromonitor It all starts with a strong core, and we remain laser-focused on strengthening that core through our advanced capabilities in marketing, innovation, revenue growth management and execution. Corporate Level Strategies PepsiCo embraces mergers and acquisitions as a strategy for international market expansion so that it can gain access to infrastructure and competencies. In effect, the company launched Coca-Cola University, a virtual and global university for all learning and capacity development. This implies that there are minimal changes a company can apply to gain a new market share. For many years, the Coca-Cola company has focused on reducing its administrative and marketing costs to maintain a healthy profit margin and gain a competitive COCA-COLA 3 advantage.
Globally, we are the No. Corporate Level and Business Level Strategies for Coca Cola 2 Business Level and Corporate Level Strategies for Coca Cola Strategies form very critical instruments in any business for their growth and expansion. As a concentrate producer, the company enters into franchised contracts with bottlers in different regions across the globe Pendergrast, 2000. The interview processes of the company seek to determine the experience of the employees applying for the post. Recent performance The company has been faring well in the last few years despite the fact that health concerns n according to the management, has been a threat to the company.
