Global Strategies, For a global company like Coca-Cola

Business Level Strategies

Coke is for everyone! Children, teenagers, middle-aged and older people; everyone is the target market of the Coca-Cola company. Coca-Cola must focus on the needs of consumers, customers and franchise partners. Get out into the market, listen, observe and learn from customers. Ongoing innovation that keeps the company continually providing their consumers with new product offerings such as Diet Coke, Coca-Cola Vanilla, etc.

Coca-Cola has the World’s sixth largest production plant. One assembly line can produce 2000 cans per minute. Such a strong production capacity will result in lower costs. Separate contracts (“Bottler’s Agreements”) exist between Company and each of its bottlers regarding the manufacture and sale of soft drinks. The bottler is obligated to purchase its entire requirement of concentrates or syrups for the designated Company Trademark Beverages from the Company or Company authorized suppliers.

Many cost saving opportunities arise from Coca-Cola as single sales and marketing activities will be used to sell the products. Advertising of the related products is carried out together. The strong company brand name is also important. The new product gains attractiveness because of the strong brand name.

Seeing the magnitude of Coke in terms of the size of the company and its presence globally, the functional level strategies pertaining to this soft drink powerhouse carry a vital significance. The functional strategy relates to the direction a functional area naming Marketing, Human Resources, operations Management and Finance would need to adopt to attain Coca-Cola’s proposed corporate and business unit objectives/strategies. Moreover, uniformity with other functional strategies is also very important. The rule of thumb is: always maximize resources and productivity.

Corporate Level Strategies

Corporate headquarters is where all corporate decisions are made. It also keeps an eye over the different operations across the world. The strategic decisions of innovations, divarication’s, introducing new beverages are taken here. Once the decision is taken, then it is communicated to all the regional offices which further pour it down to country subsidiaries.

The corporate headquarters keeps a watch over the activities of different regional offices located in every continent where Coca-Cola operates. Under a regional office, every country has its own subsidiary. This subsidiary is responsible for manufacturing of the beverages from the secret recipe, distribution of the products and the sales and marketing.

Making the essential moves to different businesses and achieve an appropriate kind and type of diversification is very important for a business and a key part of Coca-Cola’s corporate strategy is making decisions on how many, what are the types and on which specific line of business the company should be in.

The various strategies pursued by Coca-Cola that have been instrumental in making it the world’s largest brand in the beverage industry are: Product differentiation: Coke differentiates its products from the competitors based on brand, quality, and taste. Image differentiation: The Coca-Cola logo is the brand’s identification, signature, and image. Price differentiation: Competitive prices with rival Pepsi Co.

Since Pepsi has always been a direct revival to Coca-Cola, managing and matching prices b loyal customers and product switching would be quite easy for the price-sensitive audience. To ensure this competitive pricing, the Finance function would need to expertly manage budgets-where to increase investment with respect to supply chain, marketing, and where to cut costs.

Global Strategies

For a global company like Coca-Cola, the measures of success are defined in broader terms than the economic parameter alone. This is because of the diverse ways in which it affects the lives of people around the world. Coca-Cola has entered foreign markets in various ways. The most common approaches are Direct Exporting, Licensing, and Franchising. In addition to beverages and syrups, Coca-Cola also exports merchandise to overseas distributors and companies which have been an integral part in creating the successful brand’s global presence.

What differentiates Coca-Cola from its competitors is the level in which they perform consumer engagement. Notice the word is ‘consumer’ instead of ‘customer’. Coca-Cola direct customers are distributors; that are wise enough to know to know that customer’s demand and level of satisfaction is what truly matters. Consumers believe Coca-Cola to be full of life and a fun brand that has been loyal and intrigued at all times. This technique gives Coca-Cola a competitive edge and I propose they should continue to do this in the future also.

Coca-Cola should refrain from using Licensors in countries with strong competition. Due to Coca-Cola beats its competitors in taste and marketing. Technology is continually changing the way businesses operate. Trends and methodologies are responsible for making businesses feasible and profitable for the drive of expansion are given strict emphasis. Currently, Coca-Cola can achieve large revenue opportunities participsting in the global market.

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