Cokes Primary Strategy - Essay Example

The problem that Coke is currently faced with is determining the most appropriate competitive strategy that would achieve consistency in Coke’s brand and enable them to sustain global market leadership.
Analysis
Using Miles and Snow’s framework, Coke appears to be using three diverse competitive strategies as defenders, prospectors, and analyzers.

As disclosed, prospectors are creators of change to which their competitors respond to. Due to the global leadership exemplified by Coke, they could also assume a defenders strategy by devoting current and future efforts to improving the efficiencies of their current and core competencies. Finally, as analyzers, Coke continues to undertake research and scan the environment for changes in demands and customers’ needs and preferences. Porter’s framework uses the five forces: rivalry, supplier power, buyer power, the threat of substitutes, and the threat of new entrants.

Coke’s success in surpassing the performance of its competitors has been due to its continued commitment to review these five forces and determine strategies that would effectively address defined threats and risks and tap existing opportunities. Coke’s ability to maintain a proactive stance through continued research, employing innovative and competitive strategies, and responding to the needs of the clientele have contributed to their leadership on a global scale. By consistently delivering high-quality and affordable products, coupled with effective strategies for promotions, place, and price, Coke has sustained market profitability and assumed a competitive advantage over its competitors.

Suggested Solution
The most appropriate competitive strategy that would allow an organization to develop a sustainable competitive advantage is offering a product with distinct competency that is difficult to copy by competitors. For Coke, their secret formula for the classic Coke had remained confidential and no competitor could copy or closely resemble the distinct taste that made Coke number 1. Coke would have to continue to apply the various competitive strategies as defenders, prospectors, and analyzers and maintaining a proactive stance to effectively scan the environment, address the risks and threats and capture opportunities in the global market.

For Butler, the design strategy that would provide consistency in Coke’s brand should apply the strategies as defender, prospector, and analyzer, in creating a unified design for the global market. Butler’s evaluation of the 450 brands should streamline, delete, replace and maintain only those that are clearly identifiable to Coke. A unified and consistent brand would actually minimize costs and thereby maximize revenues that would further increase Coke’s financial performance and success.

Projected Outcome
A unified and consistent brand image would be easier to maintain and monitor and would assist in enhancing customers’ awareness of Coke, as an iconic global brand.
Value Added
The competitive strategies have been successful for Coke due to their ability to implement different strategies as deemed appropriate for the situation.