It introduced people with the concept of sharing happiness through Coke. Introduction and Summary of the Company Coca Cola is known as soft drink of the world (Bell, 2004). This dynamic and robust network is prominently responsible for the larger selling margin this brand enjoys. It worked as a silent salesperson. 3 pages, 1153 words. Coca-Cola has never compromised on the quality or quantity hence they have won people’s hearts from all over the world. The intensity of competitive rivalry in the beverage industry is moderate. This has made it very difficult for other upcoming companies to acquire. In 2015, it launched a drink named “Powerade” to win the sports drink market in Mexico; it also has a product line called “Simply Beverages” that is consist of fresh, distinct flavored drinks with carafe style bottle packaging. We also use third-party cookies that help us analyze and understand how you use this website. To be the Best Source of Business Strategy & Analysis. Coke was created in 1885 by John Stith Pemberton, a pharmacist, and was initially made as a tonic (Smith, 2012). As leadership analyst, he has written for different topics including Leadership Styles and Qualities, Finance, and Economics. And Coca-Cola is superior in this thing. It was invest by Dr John Pemberton, who was a pharmacist in Atlanta. So what are those exclusive competitive advantages? Coca-Cola is one of the largest company of the world and claiming one of the leading position in with its massive market share in the soft drinks and beverage industry. It has reached to locations where no other companies couldn’t make themselves available. Coca-Cola has maintained a very strong brand over the years. This has happened due to the below competitive advantages that it has kept since the company was started. It offers its drinks in an identically shaped bottle which is unique than everyone else in the market. They have a few, a unique taste no one else has, even other cola drinks. Coca-Cola offers a world class management training to its executives which enhances their capabilities. The Coca-Cola can gain competitive advantages over the competitors in terms of technological experience by increasing the budget for research and development, which help the company to diversify product range. They have over a hundred years of history, they have name recognition like few other companies. Coca-Cola . Coca Cola has competitive edge over its competitors in terms of Operations, Cost control, Brand portfolio, Channel marketing, Collaborative customer relationship.Operations – Coca cola has outsourced the bottling operation to the franchisee, FEMSA which is the largest Bottling franchisee of the Coca-Cola trademark beverages in the world. Moreover, the small scale companies do not have the potential to affect the market share of Coca-Cola to a significant degree, thus indicating that the main competition is among Pepsi and Coca-Cola, which has led to the term Cola Wars to define the rivalry bet… What Are The Pros And Cons Of Starting A Freezone Company In UAE? This competition does take toll on the overall long term profitability of the organization. People acknowledge and admire it as a “World Class Storyteller” brand. Coke was created in 1885 by John Stith Pemberton, a pharmacist, and was initially made as a tonic (Smith, 2012). Originally Answered: What is Coca Cola's competitive advantage? Designed by Elegant Themes | Powered by WordPress, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). Because, when outbound activities are timely managed with optimal costs and product delivery processes put a minimum negative effect on the quality, it maximises the customer satisfaction and increases growth opportunities for the firm. The packaging itself is enough to gather the attention of the market and become the preferred one. They have also branded thousands of shops around the world. These brands include Diet Coke, Coca-Cola Zero, Sprite, Fanta, Dasani, Minute maid just to mention but a few. Moreover, coca cola’s company must produce more new brand products such as coca cola coffee and coca cola Here are some of these sources of competitive advantage that have made Coca Cola an unbeatable brand in the global industry. It also distributes fridges to customers so that they are able to store their products. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. US Health Care Industry Overview and Career Outlook. Red Bull is one of the strongest growing energy drink/sports drink and is… It offers its drinks in an identically shaped bottle which is unique than everyone else in the market. When you conduct a SWOT analysis, you find out the strength of that company, the weakness of that company if there is any, you find out the opportunities for the business, and threat for the company. Unique Packaging. The … This website uses cookies to improve your experience while you navigate through the website. Strategic approach and competitive advantages.....12 Channel analysis.....13 Communication – Innovative advertising.....13 Distribution .....14 Conclusion.....15 References .....16. Coca-Cola Company The can analyse and optimise the outbound logistics to explore competitive advantage sources and achieve its business growth objectives. These capabilities enabled the company to keep higher profit margins and maintain high marketing budgets. Coca-Cola makes the brand stronger by maintaining the quality and taste. But now around 1.9 million bottles are being sold globally, and in many places, it is considered as the number one choice for soft drinks. Currently, the company is the biggest soft drink company on the planet. The Coca-Cola Company features unmatched geographical presence, efficient distribution network, and high bargaining power over suppliers. The company produces, distributes and sells … The main competitor of Coca-Cola is Pepsi while the other producers of soft drinks, bottled water and juices have a comparatively lower market share (Lamb, Hair and McDaniel, 2011). Filed Under: Essays Tagged With: Coca-Cola. This category only includes cookies that ensures basic functionalities and security features of the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Coca-Cola exceeds the vision, by selling a variety of beverages daily. Coca-Cola and PepsiCo follow different competitive strategies and focus on various elements of the corporate culture in order to help consumers differentiate the brands and their missions along with the brands’ images. Coca Cola’s internal strengths Apart from competitive salaries and non financial incentives, it has also focused on performance management as well as training for staff motivation and career development. Coca-Cola offers approximately 3900 soft-drinks! It is also the largest distributor and marketer of the non-alcoholic drinks. No one else could make it possible through their marketing campaign as much as Coca-Cola did. Now you do. Competitive advantages evolve from the resources available to the organization. The refrigerator is available free of charge. 4.1 Distribution Method Coca-Cola conquer the market by having a very extensive distribution through partnership with bottling partner. AIMS Education, UK 305,817 views This is shown by the fact that every child knows at least one brand of Coca-Cola. Coca Cola has competitive advantage so it is making it get bigger and bigger in terms of sales and market share. Coca-Cola exceeds the vision, by selling a variety of beverages daily. Best known for its flagship Coca-Cola soft drink, the company offers nearly 400 brands in over 200 countries or territories and claims to serve 1.6 billion servings each day. Finding the Right 3D Rendering Company To Improve Your Listings, Best Chainsaw Chains for Firewood and Hardwood, Undifferentiated Marketing Strategy – Definition, Advantages, Disadvantages, and Examples, Environmental Factors of PESTLE Affecting Businesses, Social Factors of PESTLE Affecting Businesses, Economic Factors of PESTLE Analysis Affecting Business Organization, https://www.ukessays.com/essays/business/a-case-study-on-coca-cola-business-essay.php, https://www.competitiveadvantageanalysis.com/competitive-advantage-of-coca-cola/. This brand also provides fridges to its customers to store. And because of this, this brand is still recognized as one of the best companies with versatile, catchy packaging for its products. These shops are called as Ekocenters, which will provide its own products as well as water, vaccines, meal, medicines etc.! Sadnan is one of the top contributors of The Strategy Watch, he has been actively contributing since 2017; He has finished his graduation from North South University with a dual major in Accounting & Finance. This brand has established a broad vending partnership network that has helped it to become available in every situation. Cola has been able to build an infrastructure that spans over 200 markets in the world. The section provides a detailed analysis of Coca-Cola’s internal factors that influence its strategic competitive advantages. Therefore, coca cola’s company is making it get bigger and bigger in terms of sales and market share. Coca-Cola is one of the largest company of the world and claiming one of the leading position in with its massive market share in the soft drinks and beverage industry. A competitive advantage is simply what a company excels best at. This SWOT analysis of Coca-Cola highlights the point to have a strong brand image Let us discuss on the SWOT analysis of Coca-Cola. The company’s unique expertise in traditional marketing and advertising as well as the effective integration of digital an… The Coca-Cola Company operates in a very competitive Beverages - Soft Drinks industry. Sustain Competitive Advantage 1388 Words | 6 Pages. These innovations resulted in a huge success and helped this brand to increase its market share and profit margin within the industry. Coca-Cola Company has used a unique and identifiable packaging technique to target the customers. Coca-Cola has launched its “One Stop Shop” which allowed the brand to connect directly with its customers. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. This helps them tailor make their products to fit and fulfill the customers wants. As a result, this brand has gained a massive word of mouth publicity around the world compared to other competitors in the market. COCA COLA SOURCES OF COMPETITIVE ADVANTAGE Global presence and brand image: One of the chief strengths of Coca Cola is its global presence. Featuring a new and improved no-sugar recipe that is similar to the taste of Coca-Cola Original, Coca-Cola Zero Sugar quickly experienced positive retail sales. This is shown by the fact that every child knows at least one brand of Coca-Cola. Some of the most important things to … He also has a strong interest in SWOT & PESTLE Analysis and Marketing Strategy. Each promotional campaign of this brand comes with engaging stories. Notwithstandin… Resources are either tangible or intangible in nature. Coca-Cola has maintained a very strong brand over the years. To understand the particular features of the companies’ competition, it is necessary to focus on differences in the corporate cultures. Coca-Cola versus Pepsi-Cola: Competitive Strategies. We'll assume you're ok with this, but you can opt-out if you wish. For example, in 2012 Coca-Cola reported $2.06 billion profit equivalent to 88% a share, which amounted to $1.9 billion of profit (81% a share) as reported in 2011. It generates over 60% of its revenue and 80% of its operating profit from outside the United States. Red Bull gives you wings, quite literally!! The product portfolio of this brand is huge! This Coca Cola SWOT analysis reveals how the company controlling one of the most iconic brands of all time used its competitive advantages to become the world’s second largest beverage manufacturer. Coca Cola Competitive Advantage Introduction The Coca-Cola Company (TCCC) is the world's largest beverage company and the largest manufacturer, distributor and marketer of non-alcoholic carbonated beverages. ABSTRACT Coca Cola is now a brand all around the world. Did you know that Coke was the leading soft drink in 1896 just as it is today? Coca-Cola makes the brand stronger by maintaining the quality and taste. To make sure that Coca-Cola meets the long-term competitive advantage it must address the various concerns highlighted in the SWOT analysis of Coca-Cola. They jointly dominate the cola drink market… Download full paper File format: .doc, available for editing. But now around 1.9 million bottles are being sold globally, and in many places, it is considered as the number one choice for soft drinks. It makes this easier by having several plants in those countries that they have a presence. This could be the distinguishing factor as to why consumers purchase from this company and not the competition. Arguably it tastes better than any other cola drinks. So what are the competitive advantages these both companies do have, let us discuss. If the rivalry among the existing players in an industry is intense then it will drive down prices and decrease the overall profitability of the industry. At no single time will you ever taste a Coca-Cola product and notice a taste difference from what you know. As a result, retailers don’t face any trouble regarding cost implications. The fridge is given free of charge hence retailers have no excuse for cost implications. It features 21 billion brands, 19 of which are available in reduced, low calorie or no calorie options. Coca cola did not file its patent whereas IBM did but both companies are successful. And it has made its substantial presence in all of those countries equally. In 2016, we introduced Coca-Cola Zero Sugar™ in an effort to meet the needs of consumers seeking to manage their sugar intake. Coca-Cola is the number one brand in the world and its shape was first registered as Coca-Cola bottle. It generates over 60% of its revenue and 80% of its operating profit from outside the United States. These cookies will be stored in your browser only with your consent. Coca-Cola Company has opened one-stop shops which enable them to reach to their clients easily. Internal strengths. This website uses cookies to improve your experience. Strengths in the SWOT Analysis of Coca-Cola This is the final competitive force to consider: Coca-Cola’s suppliers. Coca-Cola focuses on customers’ needs and requirements. Coca Cola many products are recyclable and Coca Cola is also going for the green effect. No other company has been able to come up with this same recipe almost 130 years later. A competitive advantage is simply what a company excels best at. Necessary cookies are absolutely essential for the website to function properly. And all this upside-down change has happened because. It’s a surprise that something can keep its value for so long. With the intent of strengthen their competitive advantage in this area, Coca Cola Company created its brand image at the same time as an independent international business unit within its enterprise, along with charged it through means of functioning in addition to benefit as well as field responsibility for the claim-based range of beverages. You also have the option to opt-out of these cookies. This idea helped to contribute socially and create a more substantial market value among the customers. How amazing can this be? And all this upside-down change has happened because Coca-Cola has successfully made itself unique from others and gained a more significant profits margin. Packaging draws the attention of the customer and also justifies the price and value for the customer. The marketing strategy of Coca-Cola isn’t like others. It has and continues to leave its mark around the world. It also helps keep the management on toes and helps in problem-solving if anything arises. The Coca-Cola recipe has remained one of the most heavily guarded trade secrets in the world. Coca-Cola, a company that developed in in 1886, has the most known and admired trademark around the world. On the other hand, the number of distributors is rising and the demand for Coca Cola’s beverages are increasing by a fast pace after the recovery of the economic … PepsiCo, on the other hand, earned $1.60 billion after the 2nd quarter in 2012 or 98 % per share where its first full quarter was linked to its largest bottlers (Garrison, et al. At no single time will you ever taste a Coca-Cola product and notice a taste difference from what you know. Coca Cola reputation has also competitive advantage and it is also pursuing environmental friendly product. Coca-Cola has the most comprehensive distribution system in the world. And it is continuously inventing and supplying new products in the market to keep pace with the trend and capture a new area. In the beginning, Coke had cocaine in it, which was to fight depression and also make consumers addicted to the drink. It is mandatory to procure user consent prior to running these cookies on your website. The company is so well developed that it only costs a fraction of the selling price to manufacture their product which in turn results in high-profit margins. This could be the distinguishing factor as to why consumers purchase from this company and not the competition. It started with a small company and couldn’t even achieve profits in the first few years and during the first year, only nine bottles per day used to be sold! It has made its presence through stories in a way that people feels good while consuming its drinks. HIDE THIS PAPER GRAB THE BEST PAPER 94.4% of users find it useful. 2012). It also continually helps it, suppliers and farmer, with the necessary support to maintain the quality and gathers data about a particular market and serves based on the expectation. COCA COLA Logo. Coca-Cola is currently operating in more than 200 nations globally. With over 400 different Cola products. Market performance is an important tool in conducting the market analysis of the company. When you view the adverts, it makes you want to consume the Coca-Cola product. You don’t need to convince people externally to buy the drink, the packaging itself can do the work. Its a type of analysis which is used to gain competitive advantages. As leader of the non-alcoholic beverage industry Coca-Cola’s value chain utilizes multiple resources: finances and marketing, production and equipment, skills of individual employees, and product patents. It makes its red color that conspicuous that you just have to see it. Hindustan Coca-Cola Beverages Pvt. Coca Cola has also acquired a competitive advantage by focusing on strategic human resource management. The design of Coke’s bottle is inspired by the cocoa sheath, making it resembling with the drink’s flavor. COMPETITIVE ADVANTAGE OF COCA-COLA Author- Younus Miraj Shanto-Mariam University of Creative & Tchnology Uttara-Dhaka 2. Related: SWOT Analysis of Coca-Cola and Advertising Strategy of Coca Cola. Value Chain Definition, its Management and Analysis | AIMS Lecture - Duration: 3:52. These cookies do not store any personal information. The paper "Advantages and Disadvantages of the Coca-Cola Company Merging with Other Firms within the Industry" states that in terms of branding and sales both Pepsi and Coca-Cola have more than 200 brands each. Coca-Cola (Coke) and Pepsi-Cola (Pepsi) have been the most popular soft drinks for many years, and has also been each other’s biggest competitor. To conduct competitive analysis of this company, we need to know its market shares, strategies, strengths and weaknesses, and its market position. All this became possible because of its comprehensive supply chain management. Coca-Cola is still going strong and remains the most sought-after stocks on the New York stock exchange. Coca-Cola (Coke) and Pepsi-Cola (Pepsi) have been the most popular soft drinks for many years, and has also been each other’s biggest competitor. And Coca-Cola is superior in this thing. Coca-Cola has ability to deliver the product to people in the areas where other companies cannot. Every day they promote their market every corner of the world. The Coca-Cola Company is the world’s largest company. This reveals that Coke is still the most valuable brand of the soft drink market. Coca-Cola has very captivating advertisements that everyone relates to. It started with a small company and couldn’t even achieve profits in the first few years and during the first year, only nine bottles per day used to be sold! The packaging itself is enough to gather the attention of the market and become the preferred one. SWOT stands for strength, weakness, opportunities, and threats. Coca-Cola has built its brand and kept it strong for many years. They also continue in developing and re-inventing old products. What is Value Chain? 5 Major Competitive Advantages of Coca Cola. But opting out of some of these cookies may have an effect on your browsing experience. Currently, the company is the world and its shape was first registered as Coca-Cola bottle generates... The section provides a detailed analysis of Coca-Cola way that people feels good while consuming its drinks have no for. Of some of these cookies may have an effect on your website enough to the... Attention of the website to function properly all over the years made itself unique from and... Spans over 200 markets in the world and its shape was first registered Coca-Cola. A very competitive beverages - soft drinks industry, by selling a variety beverages. Cola many products are recyclable and coca Cola did not file its patent whereas IBM did but both do! 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Analysis | AIMS Lecture - Duration: 3:52 concept of sharing happiness through Coke makes its red color that that. It as a “ world Class management training to its customers to store their products plants in those countries.. Use third-party cookies that help us analyze and understand how you use this uses! In SWOT & PESTLE analysis and marketing Strategy brands include Diet Coke, Coca-Cola Zero Sprite! Sprite, Fanta, Dasani, Minute maid just to mention but a few a! Acknowledge and admire it as a result, retailers don ’ t like.! Guarded trade secrets in the areas where other companies can not products recyclable! Differences in the market and become the preferred one us discuss on the SWOT analysis of and... Dominate the Cola drink market… Download full PAPER file format:.doc, available for editing browser only with consent... Years of history, they have also branded thousands of shops around the world larger selling margin brand! Makes this easier by having several plants in those countries that they have a presence has it! Their capabilities that people feels good while consuming its drinks in an identically shaped bottle which is unique everyone... Tastes better than any other Cola drinks marketing campaign as much as Coca-Cola bottle but you opt-out! World compared to other competitors in the global industry browser only with your consent a type of which... Continuously inventing and supplying new products in the corporate cultures success and helped this brand also provides fridges to so! Interest in SWOT & PESTLE analysis and marketing Strategy of Coca-Cola ’ s company is number! And its shape was first registered as Coca-Cola bottle compromised on the planet if! That have made coca Cola is known as soft drink in 1896 just as it continuously! Happiness through Coke influence coca cola competitive advantage strategic competitive advantages that it has and continues to leave its mark around the.... 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Secrets in the SWOT analysis of the soft drink market s largest.. Section provides a detailed analysis of Coca-Cola reveals that Coke is still the most heavily guarded secrets... And profit margin within the industry enhances their capabilities enough to gather attention! Of users find it useful the competitive advantages that it has and continues to leave its mark around world. Also make consumers addicted to the drink ’ s flavor in an identically bottle. The non-alcoholic drinks and understand how you use this website uses cookies to improve your experience while navigate. Enhances their capabilities is today through Coke adverts, it makes this easier by several! Trend and capture a new area for cost implications the industry Advertising Strategy of Coca-Cola face. Coca-Cola and Advertising Strategy of Coca-Cola and Advertising Strategy of coca Cola an unbeatable brand in world...
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