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Coca-Cola - Case Study Example

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From its invention in 1855 by John S. Pemberton who was inspired by the formidable success of Vin Mariani, Coca-Cola has risen to become one of the world's most famous drinks. Coke, the flagship brand of the Coca-Cola Company is manufactured and distributed in 200 countries around the globe…
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Coca-Cola Case Study
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Download file to see previous pages The first part of the paper will identify and evaluate the key success factors employed by the business organization. Next, this paper will analyze the weaknesses of the company and the potential threats that lie ahead. Lastly, this report will give its recommendation on how Coca-Cola can further improve its marketing strategy. In order to give a thorough investigation, this paper will utilize different strategic management tools.
A key success factor is defined as specific skill or talent or competitive capability which spells the difference between profit and loss or competitive success or failure of a business organization. Looking at the strategic operation of Coca-cola, it can be seen that the key success factors of the company are its superior marketing mix, focus on innovation, and global orientation.
Coca-Cola's marketing mix, as with other companies have four major components which are product, price, promotion, and place. It can be seen that the company has done an excellent job in coming up with a marketing mix which appeals to the global market. The products offered by Coca-Cola, for instance, have become widely accepted in the global market because it conveys a "universal taste" which discounts the differences in nationality, culture, and traditions. Secondly, the company has a pricing strategy which is at par with the industry. The marketing campaigns launched by Coca-Cola define and become a foundation of modern day marketing. The advertisements of the business organization irrefutably reveal new techniques and styles in capturing the audience. Lastly, Coca-Cola's success is largely due to its wide availability. Its products are sold almost everywhere, from restaurants, to cafes, to vending machines, to kiosks, and most establishments.
Another key success factor of Coca-cola is its focus on product innovation. Recognizing that the various changes in the market where it operates, the company reinvented itself to evolve from a single core product to a total beverage firm. Currently, Coca-Cola has nearly 400 beverages in its portfolio and is still geared in offering beverages which suits the preferences of its market. In 2005, the company announced that it has introduced "a variety of new brands, brand extension, and new beverage products."
Lastly, Coca-Cola's success is also highly attributed to its global orientation. Recognizing the huge profit opportunities abroad, the company has expanded geographically. By being global oriented, the company is not only able to establish presence in foreign markets but is also able to generate new revenues and efficiently distribute costs among its operating segments. The company is also able to utilize resources which are present abroad in order to enhance its operations. However, aside from being globally oriented, the company also concentrates on creating specific products which suits the need of a specific market:
"Consumer demand can vary from one locale to another and can change over time within a single locale. Employing our business strategy, and with special focus on core brands, our Company seeks to build its existing brands and, at the same time, to broaden its historical family of brands, products and services in order to create and satisfy consumer demand locale by locale."
Weaknesses and Threats
The weaknesses and threats faced by the Coca-Cola can be determined by conducting a SWOT ...Download file to see next pagesRead More
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