Coca cola has been used as an example of organization for internal and external environment, business level and corporate level strategy. Coca cola was introduced in the year 1886 and it has its operations in more than 200 nations around the world with over 2700 products.
Internal environment
Coca cola has effective production procedure, skills and effective communication network. It has used assessment for the purpose of operations and it has several long term objectives for the purpose of supporting reward intentions. The primary objective is for maximizing the value of share owner. It focuses on maximizing long term cash flow by giving an increase to gallon sales and optimization of profit margins. It has also invested in attractive returns and ensures efficiency production, marketing, distribution and production of marketing systems.
There are heavy expenditures for brand awareness. There are barriers in the industry like access to bottles and distribution system. There is exclusive agreements with them. This makes it difficult for new entrants by setting barriers.
There is high level of competitive rivalry. The presence of Pepsi is high and there are several products that compete directly with the brand.
There is medium threat of substitute products. There can be an easy shift to substitutes. However there is a strong loyalty for the brand which makes them stick to the brand.
There is medium bargaining power of buyers.
Segmentation of market
It focuses on high inventory costs and the focus is on individuals who come from expensive areas. It associates itself with activities and sports. Sport events serve as best platform for the purpose of advertising.
Swot analysis
Strengths
It has high sales rate
It is a popular brand with strong brand presence and brand loyalty
Weakness
It has gotten into trouble for the health risks attached to it
There are also concerns related to the upcoming healthy products that people tend to prefer
Threats
There are upcoming competitors who serve as threat and there is pressure on the brand to be absolutely attractive
Opportunities
It has opportunities to keep booking in international markets
It can take the opportunity of its decreasing volumes in places like Thailand and Indonesia.
It has competitive advantage and it leads to value creation by help of neutralizing threats. The primary and secondary activities are department of value chain. It follows the important business aspects and maintains the loyalty of its customers. The strong marketing and management strategies help the organization to stand apart (Regassa & corradino 2011)
The business level and corporate strategies have been listed below
The organization focuses on operating in the industry in a competitive and unique way. It uses unique formulations and focuses on maintaining strict quality standards. The unique marketing campaigns, labeling, texture, top quality products maintains the variations. Even though new flavors are introduced it does not experiment with the original taste.
It has low cost leadership and successfully delivers top quality products. It serves as a successful strategy and focuses on internal efficiency. It has high level of standardization and marketing. There is tight control for marketing, research and development.
The corporate strategy focuses on growth strategies. It targets new customers and new geographical locations. It makes use of horizontal growth strategy with development in supply and distribution system. It has diversification strategy and unique stability strategy.
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