The purpose of this paper is to provide an analysis on Coca Cola Company from strategic point of view. In order to analyze the strategic analysis, it is crucial to determine how the company set it’s strategies in the market and then integrate that strategies with the SWOT analysis of the company. This paper will give a detailed description of the strategy of the company, the consequence of the defined strategy, and the key success factors of the company.
Coca Cola Company is the world’s leading manufacturer, distributor and marketer of non-alcoholic beverages concentrates and syrups. It has produced nearly 400 beverage brands. The company’s products consist of bottled and canned soft drinks, sport drink, tea and coffee. It also produces concentrates, syrups and not-ready-to-drink power products. In the 1920s, the Coca Cola Company started establishing its global network. At present, the company is operating in more than 200 countries and producing nearly 400 brands. It is assumed that the Coca Cola Company is made up of the most sophisticated and pervasive production and distribution system in the world. More than anything, the system of Coca Cola is committed to those who work long and hard to sell the products manufactured by the Company. For more than 115 years, the company has established a special moment of satisfaction for millions of people every day. The company focuses to increase shareowner value overtime. The company has done it by collaborating with its partners for delivering satisfaction and value to its customers through a worldwide system of superior brands and services. In this way, it can manage to increase brand equity among its competitors. They plan their business with those who are effectively committed to the company’s values and culture and who can meet business goals and objectives.
The mission of Coca Cola is very simple that it has intended to revitalize the world, to give moments of optimism and happiness, to generate value and make a difference. For this mission, Coca Cola set its vision as follow;
People – to bring inspiration into people’s daily life when they are working in Coca Cola
Portfolio – to bring to the world as excellence beverage brands portfolio that can persuade people desires and needs
Partners – to create a win-win network among customers and suppliers and create enduring value together
Profit – to maximize long-term return to shareholder while aware of responsibilities
Productivity – to stand as a highly successful and fast moving organization
Internal Analysis of Coca Cola
Coca Cola bases on its two core assets of its brands and its people. For its employees, it is so special for them to work in Coca Cola. They have confidence in their company and they believe that their company is a place of exploration, innovation, professional growth and interpersonal relationships. They are being inspired and motivated to achieve extraordinary things. Coca Cola make their people take pride in their work and in building brands. Actually, there are 92,800 associates of Coca Cola that are working in the markets around the world. In the geographically diverse environment, Coca Cola learn from each market and share those learns quickly. That is why the culture of Coca Cola is more collaborative than its competitors. Coca Cola associates are sharing ideas within departments and markets in innovative ways according to beverage concept and development to merchandising. In this way they increase enthusiastic on their work and inspiration of turning plans into actions.
Five Strategic Actions of Coca Cola
1. Focusing on driving revenue and profit growth
Coca Cola focused on driving revenue and profit growth. Each country they serve plays a critical role in their growth plans. Coca Cola use segmented revenue growth strategies in their business varied by market type. They adjust their employee incentives properly. They concentrate mainly on increasing volume by keeping their products affordable and strengthening the base of their future success in emerging markets. They smacked a balance between volume and pricing in developing markets. However, they depended especially on price and improving profitability by providing more premium packages such as glass and aluminum bottles.
2. Investing in their brands and business
Continuous investment is essential for healthy businesses. Therefore Coca Cola made a choice of investing in better marketing for their brands in order to increase both the quantity and quality of their advertising. They spent on media advertising more than $250 million, and they exploited these funds for stronger and more impactful advertisements.
On the other hand, they also invested in their expansive beverage portfolio. By building a strategic new partnership with Monster Beverage Corporation, they improved their position in the energy category. They invested in brands like Suja and China Green Culiangwang.
In 2015, to support the entire Coca Cola Trademark of Coke, Diet Coke, Coke Zero and Coca Cola Life, the company developed their first global marketing campaign. The campaign “Taste the Feeling”, which was launched in early 2016, highlighted the refreshment, taste, uplift and personal connections. With this campaign and Coca Cola’s “one brand” strategy, they let consumers know that they can enjoy Coca Cola with calories, fewer calories or no calories and with or without caffine.
3. Being more efficient
Coca Cola increased their efficiency and productivity at the same time reducing costs in order to increase their financial flexibility. They reduce spending on non-media marketing like in-store promotions. They also make savings in the supply chain around the world. In this way, they found that they had made more than $600 million in productivity improvement in 2015. Moreover they used to invest further in their brands and business and to return to their shareowner.
4. Simplifying their company
Industry Analysis of Coca Cola
The major competitors of Coca Cola are Pepsi, Pran, RC Cola. For Pepsi, it is a market leader globally and available in 187 countries around the world. In carbonated soft drink producing cola, lime and lemon, Pran can keeps its market share and in Bangladesh and international market, Pran’s refreshing soft drink are widely accepted.