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Strategic Choices for Coca-Cola Company - Research Paper Example

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The paper explores strategic choices for Coca-Cola Company. Coca-Cola has been in existence since 1886 when it was established. From the period, it was established the company has progressively become popular and recognized brand in the global market. …
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Strategic Choices for Coca-Cola Company
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"Strategic Choices for Coca-Cola Company"

Download file to see previous pages The paper "Strategic Choices for Coca-Cola Company" focuses on Coca-Cola Company's strategic choices. The company has not operated alone in the market; it has received competition from other companies like Pepsi. In order to create an edge over its competitors, Coca-Cola has adopted differentiation strategy, which in many ways has proved successful for the company. It is important to evaluate how this strategy has been successful for the company and the likely recommendations for modifications especially in line with its mission and vision. Coca-Cola has for a long time favored the resource-based concept, which has become the main avenue of its strategic goals. The company perceives its success in the market to rest on effective use of its fundamental resources such as the brands, systems, capital, and the people. The goals of the company have been drawn and implemented based largely on these fundamental resources. At the same time, the attempts of the company have largely been geared towards creating competitive advantage by utilizing its resources to the maximum. The most characteristic of the company has been reflected in its increased use of resources to promote its brands around the globe through increased advertisement and promotion. As a result, the company has been successful in creating strong brands in the market. In order to successful carry out its strategic goals and objectives, Coca-Cola has widely adopted the differentiation strategy, and this strategic method has enabled the company to strengthen. and foster its position in the wider global market (Knol Beta p.1). Differentiation strategy according to Porter aims to make company’s products or services unique when compared to its competitors (Stonehouse and Campbell p.177). The ultimate aim of this strategy is to create customer loyalty that exhibit little price elasticity of demand due to perceived unique aspects of the products or services as compared to competitors (Stonehouse and Campbell p.177). Effective of this strategy for the Coca-Cola can be linked to its increased and ever growing advertisement and promotion activities, which have enabled the company to create a unique market position as compared to competitors. At the same time, differentiation strategy has proved successful given Coca-Cola’s established customer loyalty base, which has built over a long period. More so, refreshment and beverages market is increasingly becoming saturated and differentiation strategy has enabled Coca-Cola to stay apt and address the needs of its customers satisfactorily (Knol Beta p.1). Weaknesses of the company have been witnessed in negative publicity, increasing health concerns, unpopularity of some brands, and poor performance in some markets (Knol Beta p.1). As a result, differentiation strategy seems to address the concerns by responding to the unique nature of concerns in each market in the areas the company operates. On the same grounds, as the competition in the market continue to increase especially in localized areas that Coca-Cola operates, the differentiation strategy seems to give the company upper hand in terms of penetrating markets and establishing loyal and satisfied consumer base. Lastly, as health concerns and ...Download file to see next pagesRead More
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