Coca Cola Business and Corporate Level Strategies
Business level strategy relates to the mechanisms put in place to gain market penetration and expand the market niche to be able to sell products at a substantive profit. On the other hand, corporate level strategies entail initiatives that an organization undertakes to determine which business units to sell or purchase in an effort to integrate operations and find ways of creating synergies for value development across markets. The paper will analyze Coca-Cola Company strategic ingenuities that have been designed to ensure the business is competitive and manages to fulfill their market objectives to every stakeholder. Coca-Cola Business Level Strategy Coca-Cola Company has evolved over time to become a significant brand across the world primarily due to the way it has organized their business strategy to respond to changing market dynamics.
The company uses several business strategies that seek to enhance the capacity to satisfy consumer expectations. Moreover, Coca-Cola applies the focus strategy which merges the low-cost model and differentiation model to put in place a system that looks into specific market segments to deliver the best for consumers. The focus strategy is critical to business progression since it allows Coca-Cola to develop methodologies of designing their product based on the unique market characteristics for purposes of attaining substantive growth. For instance, the focus strategy is implemented through mass production for a given targeted segment and ensuring the business goes on to put in place marketing strategies that seek to attract a significant portion to utilize the products for economies of scale to make sense (Galpin, Whitttington, & Bell, 2015).
The focus strategy enhances the ability of the organization to treat every specific segment with the required attention based on the determination to provide the best quality at limited costs. The most important business strategy for Coca-Cola Company is differentiation since it has defined the past success of the organization and has the ability to be backed by innovation to be sustainable across several segments. The growth of the Coca-Cola brand from a soft drink manufacturer to providing other products such as mineral water, juices, tea, coffee, and soda demonstrates the commitment to developing varieties for the market. Diversification has enabled the business to grow exponentially and enabled their customers to be spoilt for choice in the different products available. Stability strategy is another corporate level strategy applied by Coca-Cola to enhance the competitiveness of their business.
The company has an articulate plan focused on enabling substantive growth despite the underlying challenges within the market. The elaborate plan for growth has a series of checks and balances to determine the capacity of the endeavor upon realization of the practicality in situations that the external environment makes it challenging for the organization. Even though other significant players such as Starbucks, Dr. Pepper Snapple Group, Nestle Waters, Red bull GmBh among others, Coca-Cola has attained substantive dominance. The growth of the dominance is due to the significant investment in marketing initiatives applied by Coca-Cola to advance their brand compared to Pepsi. The growth of the brand is due to the expansion strategies and diversification employed by Coca-Cola as opposed to Pepsi in increasing their presence across new market frontiers (Gürhan-Canli, Hayran, & Sarial-Abi, 2016).
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