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Posted: November 30th, 2024
May 8th 1886 Coca Cola was created by John S. and served at Jacobs’ Pharmacy. At start the company had a rough start and it was named “Coca Cola” by company’s accountant Frank. In 1887 the promotion method was coupons, and John S. registered Coca Cola Syrup and Extract to US patent office. In 1915 the Coca Cola Company design a bottle by Alexander Samuelson which became standard bottle for Coca Cola. In 2008 Coca Cola sponsored the big games and Coca Cola facebook page which is made by two fans has over twenty two million fans worldwide. In 2009 Coca Cola became a billion dollar brand, and in 2010 Coca Cola Company obtain the whole North American bottling business. By 2011 Coca Cola Company celebrates its 125 years.
Coca Cola is largest company in the world which sells beverages. Coca Cola has large product brands which are more than five hundred. Its products include popular names such as Coca Cola Classic, Fanta, Sprite, and Minute Maid. Coca Cola besides being number one company is the most valued company in the world. Coca Cola has a long history of being sustainable company in profit and also for protecting communities and their environment (The Coca-Cola Company, 2010).
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Mission of Coca Cola
In the mission statement of Coca Cola its purpose as a company is to serve in standard terms. It also takes good account about each and every action and decision made by Coca Cola. The aim of mission is to make the world refresh, inspire people, bring happiness, and to make difference by value of its products.
Vision of Coca Cola
Coca Cola vision is the framework roadmap for every aspect of Coca Cola’s business. Coca Cola’s vision is to achieve sustainable growth by applying the principle described below:
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People: Bring inspiration into people’s life while working in Coca Cola.
Partners: Creating a winning network of suppliers and customers.
Portfolio: Bring portfolio of quality into the world.
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Productivity: Making Coca Cola effective company.
Profit: Make profit while heedful of responsibilities.
Planet: Becoming responsible citizen and supporting sustainable communities.
Objective of Coca Cola
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Objectives are drive from vision and mission of the company and it serve as action of Coca Cola how to behave in the world.
Headship: Having courage for better future.
Group effort: Believe in collative genius.
Integrity: Be genuine.
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Passion: Having hard time mind committed.
Accountability: To be accountable to the people.
Diversity: Broad as Coca Cola’s brand.
Quality: Produce best products.
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Coca Cola is widely known to the world, and its popularity is its strength. Coca Cola is known to people by its colour, logos, and marketing. Coca Cola has status in beverage industry which is not challenged by any other company. People who drink Coca Cola are loyal to Coca Cola for example 80% of revenue of Coca Cola come from its 20% loyal consumers. Coca Cola has ability to sell and make products around the world which is unique to Coca Cola.
Coca Cola Company has few weaknesses. There is no effect from Coca Cola to answer the question people pose about harm’s of Coca Cola’s drinks. People think that Coca Cola’s products are not good for health.
Coca Cola has many opportunities which it can take advantage of for its success. Coca Cola can actively market its products which are less popular. Coca Cola is know to 90% population of the world and it can bring this to 100%. Coca Cola can increase the gap between itself and its competitors.
Coca Cola has been very successful company but yet to deal with some threats. Coca Cola need to settle its lawsuits. It also needs to change people’s negative view about Coca Cola Company.
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Coca Cola worldwide market shares in flavored carbonated and soft drinks are forty seven percent. In USA Coca Cola has this share to forty two percent and globally fifty percent. Coca Cola is world largest manufactures, distributer and marketer of beverage industry which brings many challenges for Coca Cola. Canning and bottling is done in many countries, in 1995 change in organization of Coca Cola lead to five regional group headed by group president and it also resulted in spinning of canning and bottling operations into independent companies.
The other challenges are faced by coca cola are related to different things. There is frequent change of Chief Executive Officer and there was also financial crisis in Russia which hit Coca Cola. Coca Cola is also facing the problem of weak global economy. Coca Cola has to deal with price due to local competitions, and there is also problem of foreign exchange which leads to low profit due to fragile currency. There was also challenge for expanding Coca Cola which resulted failure of purchase of Cadbury. Coca Cola also has challenge of being poor quality.
Challenges which are ahead of Coca Cola are related to many spectrums. Coca Cola lacks creativity in marketing and advertising. It has poor relationship with some bottlers. There are some issues related to management of Coca Cola by over controlling board of directors. There is unwillingness in Coca Cola to change according to industry demands. Pepsi diversification into snacks and non beverage industry is challenge for Coca Cola.
Brand recognition is very important factor affecting Coca Cola’s competitive position. Coca Cola’s brand name is known to ninety percent of the world. The primary cause over the past few years is to get this brand name to even better known. Packaging changes affect Coca Cola’s sales and industry position but in general the people are tending not to be effective by new product.
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Coca Cola bottling system allow it to take advantage of never-ending growth opportunities around the world. This strategy of Coca Cola gives opportunity to serve in large and different geographic areas.
Step 7: What strategies are adopted in the company over the years. Distinctly discuss separately all the levels of strategies. And identify the DOMINANT strategy.
Building Competitive Advantage Though Business-Level Strategy
In a business model which is successful we need to have business level strategy which give a company competitive advantage over its rivals. They must decide 1) customer needs and how they are satisfied 2) customer groups and how they need to be satisfied 3) distinctive competencies of how customers needs to be satisfied.
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Business-Level Strategy and the Industry Environment
In bitty industries composed of large number of small and medium size companies in the principle form of competitive strategy are chaining, horizontal merger, franchising, and using internet. In growth industries the strategies is determined by market demand. Companies need to identify from growth to maturity by choosing investment strategy that helps or supports there business model. There are four main strategies which a company can have if the demand is falling:
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