Cola has been able to build an infrastructure that spans over 200 markets in the world. They have a few, a unique taste no one else has, even other cola drinks. In 2015, it launched a drink named “Powerade” to win the sports drink market in Mexico; it also has a product line called “Simply Beverages” that is consist of fresh, distinct flavored drinks with carafe style bottle packaging. Packaging draws the attention of the customer and also justifies the price and value for the customer. The fridge is given free of charge hence retailers have no excuse for cost implications. This SWOT analysis of Coca-Cola highlights the point to have a strong brand image Let us discuss on the SWOT analysis of Coca-Cola. This reveals that Coke is still the most valuable brand of the soft drink market. It introduced people with the concept of sharing happiness through Coke. Coke was created in 1885 by John Stith Pemberton, a pharmacist, and was initially made as a tonic (Smith, 2012). The company’s unique expertise in traditional marketing and advertising as well as the effective integration of digital an… Coca-Cola Company The can analyse and optimise the outbound logistics to explore competitive advantage sources and achieve its business growth objectives. Its a type of analysis which is used to gain competitive advantages. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Coca-Cola is one of the largest company of the world and claiming one of the leading position in with its massive market share in the soft drinks and beverage industry. Best known for its flagship Coca-Cola soft drink, the company offers nearly 400 brands in over 200 countries or territories and claims to serve 1.6 billion servings each day. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. This is shown by the fact that every child knows at least one brand of Coca-Cola. These brands include Diet Coke, Coca-Cola Zero, Sprite, Fanta, Dasani, Minute maid just to mention but a few. Filed Under: Essays Tagged With: Coca-Cola. This website uses cookies to improve your experience while you navigate through the website. A competitive advantage is simply what a company excels best at. It has made its presence through stories in a way that people feels good while consuming its drinks. SWOT stands for strength, weakness, opportunities, and threats. Featuring a new and improved no-sugar recipe that is similar to the taste of Coca-Cola Original, Coca-Cola Zero Sugar quickly experienced positive retail sales. It has and continues to leave its mark around the world. They jointly dominate the cola drink market… Download full paper File format: .doc, available for editing. Coca-Cola exceeds the vision, by selling a variety of beverages daily. Red Bull gives you wings, quite literally!! The paper "Advantages and Disadvantages of the Coca-Cola Company Merging with Other Firms within the Industry" states that in terms of branding and sales both Pepsi and Coca-Cola have more than 200 brands each. This helps them tailor make their products to fit and fulfill the customers wants. Coca-Cola makes the brand stronger by maintaining the quality and taste. It features 21 billion brands, 19 of which are available in reduced, low calorie or no calorie options. The … Every day they promote their market every corner of the world. It was invest by Dr John Pemberton, who was a pharmacist in Atlanta. PepsiCo, on the other hand, earned $1.60 billion after the 2nd quarter in 2012 or 98 % per share where its first full quarter was linked to its largest bottlers (Garrison, et al. It makes its red color that conspicuous that you just have to see it. But now around 1.9 million bottles are being sold globally, and in many places, it is considered as the number one choice for soft drinks. A competitive advantage is simply what a company excels best at. All this became possible because of its comprehensive supply chain management. As leader of the non-alcoholic beverage industry Coca-Cola’s value chain utilizes multiple resources: finances and marketing, production and equipment, skills of individual employees, and product patents. Coca-Cola has built its brand and kept it strong for many years. In the beginning, Coke had cocaine in it, which was to fight depression and also make consumers addicted to the drink. Moreover, coca cola’s company must produce more new brand products such as coca cola coffee and coca cola 5 Major Competitive Advantages of Coca Cola. Hindustan Coca-Cola Beverages Pvt. Coca-Cola versus Pepsi-Cola: Competitive Strategies. Value Chain Definition, its Management and Analysis | AIMS Lecture - Duration: 3:52. When you conduct a SWOT analysis, you find out the strength of that company, the weakness of that company if there is any, you find out the opportunities for the business, and threat for the company. With the intent of strengthen their competitive advantage in this area, Coca Cola Company created its brand image at the same time as an independent international business unit within its enterprise, along with charged it through means of functioning in addition to benefit as well as field responsibility for the claim-based range of beverages. For example, in 2012 Coca-Cola reported $2.06 billion profit equivalent to 88% a share, which amounted to $1.9 billion of profit (81% a share) as reported in 2011. COCA COLA Logo. This is shown by the fact that every child knows at least one brand of Coca-Cola. It has reached to locations where no other companies couldn’t make themselves available. This could be the distinguishing factor as to why consumers purchase from this company and not the competition. Coca-Cola . It started with a small company and couldn’t even achieve profits in the first few years and during the first year, only nine bottles per day used to be sold! The Coca-Cola Company is the world’s largest company. Coca-Cola, a company that developed in in 1886, has the most known and admired trademark around the world. Related: SWOT Analysis of Coca-Cola and Advertising Strategy of Coca Cola. Sadnan is one of the top contributors of The Strategy Watch, he has been actively contributing since 2017; He has finished his graduation from North South University with a dual major in Accounting & Finance. AIMS Education, UK 305,817 views Coca Cola Competitive Advantage Introduction The Coca-Cola Company (TCCC) is the world's largest beverage company and the largest manufacturer, distributor and marketer of non-alcoholic carbonated beverages. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Coca-Cola has very captivating advertisements that everyone relates to. The Coca-Cola recipe has remained one of the most heavily guarded trade secrets in the world. It makes this easier by having several plants in those countries that they have a presence. On the other hand, the number of distributors is rising and the demand for Coca Cola’s beverages are increasing by a fast pace after the recovery of the economic … You also have the option to opt-out of these cookies. To make sure that Coca-Cola meets the long-term competitive advantage it must address the various concerns highlighted in the SWOT analysis of Coca-Cola. Coca Cola has competitive advantage so it is making it get bigger and bigger in terms of sales and market share. Coca cola did not file its patent whereas IBM did but both companies are successful. Did you know that Coke was the leading soft drink in 1896 just as it is today? It is mandatory to procure user consent prior to running these cookies on your website. As a result, retailers don’t face any trouble regarding cost implications. At no single time will you ever taste a Coca-Cola product and notice a taste difference from what you know. Strengths in the SWOT Analysis of Coca-Cola COCA COLA SOURCES OF COMPETITIVE ADVANTAGE Global presence and brand image: One of the chief strengths of Coca Cola is its global presence. The design of Coke’s bottle is inspired by the cocoa sheath, making it resembling with the drink’s flavor. This could be the distinguishing factor as to why consumers purchase from this company and not the competition. Coca Cola’s internal strengths The packaging itself is enough to gather the attention of the market and become the preferred one. Necessary cookies are absolutely essential for the website to function properly. Red Bull is one of the strongest growing energy drink/sports drink and is… To conduct competitive analysis of this company, we need to know its market shares, strategies, strengths and weaknesses, and its market position. What is Value Chain? At no single time will you ever taste a Coca-Cola product and notice a taste difference from what you know. Coca-Cola has maintained a very strong brand over the years. This competition does take toll on the overall long term profitability of the organization. Coca-Cola (Coke) and Pepsi-Cola (Pepsi) have been the most popular soft drinks for many years, and has also been each other’s biggest competitor. Coca-Cola is currently operating in more than 200 nations globally. Originally Answered: What is Coca Cola's competitive advantage? Coca-Cola has maintained a very strong brand over the years. It offers its drinks in an identically shaped bottle which is unique than everyone else in the market. And because of this, this brand is still recognized as one of the best companies with versatile, catchy packaging for its products. It also helps keep the management on toes and helps in problem-solving if anything arises. US Health Care Industry Overview and Career Outlook. 3 pages, 1153 words. The Coca-Cola Company features unmatched geographical presence, efficient distribution network, and high bargaining power over suppliers. Coca Cola has also acquired a competitive advantage by focusing on strategic human resource management. No one else could make it possible through their marketing campaign as much as Coca-Cola did. So what are those exclusive competitive advantages? And all this upside-down change has happened because Coca-Cola has successfully made itself unique from others and gained a more significant profits margin. Coca-Cola Company has opened one-stop shops which enable them to reach to their clients easily. Coca Cola reputation has also competitive advantage and it is also pursuing environmental friendly product. It generates over 60% of its revenue and 80% of its operating profit from outside the United States. He also has a strong interest in SWOT & PESTLE Analysis and Marketing Strategy. We also use third-party cookies that help us analyze and understand how you use this website. This website uses cookies to improve your experience. The Coca-Cola Company operates in a very competitive Beverages - Soft Drinks industry. They also continue in developing and re-inventing old products. The intensity of competitive rivalry in the beverage industry is moderate. Coca-Cola offers approximately 3900 soft-drinks! These innovations resulted in a huge success and helped this brand to increase its market share and profit margin within the industry. As a result, this brand has gained a massive word of mouth publicity around the world compared to other competitors in the market. And Coca-Cola is superior in this thing. Therefore, coca cola’s company is making it get bigger and bigger in terms of sales and market share. These capabilities enabled the company to keep higher profit margins and maintain high marketing budgets. With over 400 different Cola products. 4.1 Distribution Method Coca-Cola conquer the market by having a very extensive distribution through partnership with bottling partner. Resources are either tangible or intangible in nature. These shops are called as Ekocenters, which will provide its own products as well as water, vaccines, meal, medicines etc.! Coca-Cola (Coke) and Pepsi-Cola (Pepsi) have been the most popular soft drinks for many years, and has also been each other’s biggest competitor. Coca-Cola is one of the largest company of the world and claiming one of the leading position in with its massive market share in the soft drinks and beverage industry. But now around 1.9 million bottles are being sold globally, and in many places, it is considered as the number one choice for soft drinks. Each promotional campaign of this brand comes with engaging stories. They have also branded thousands of shops around the world. This dynamic and robust network is prominently responsible for the larger selling margin this brand enjoys. Currently, the company is the biggest soft drink company on the planet. The company produces, distributes and sells … Moreover, the small scale companies do not have the potential to affect the market share of Coca-Cola to a significant degree, thus indicating that the main competition is among Pepsi and Coca-Cola, which has led to the term Cola Wars to define the rivalry bet… How amazing can this be? Market performance is an important tool in conducting the market analysis of the company. What Are The Pros And Cons Of Starting A Freezone Company In UAE? Some of the most important things to … The main competitor of Coca-Cola is Pepsi while the other producers of soft drinks, bottled water and juices have a comparatively lower market share (Lamb, Hair and McDaniel, 2011). Now you do. The refrigerator is available free of charge. This brand also provides fridges to its customers to store. Finding the Right 3D Rendering Company To Improve Your Listings, Best Chainsaw Chains for Firewood and Hardwood, Undifferentiated Marketing Strategy – Definition, Advantages, Disadvantages, and Examples, Environmental Factors of PESTLE Affecting Businesses, Social Factors of PESTLE Affecting Businesses, Economic Factors of PESTLE Analysis Affecting Business Organization, https://www.ukessays.com/essays/business/a-case-study-on-coca-cola-business-essay.php, https://www.competitiveadvantageanalysis.com/competitive-advantage-of-coca-cola/. And Coca-Cola is superior in this thing. These cookies will be stored in your browser only with your consent. The company is so well developed that it only costs a fraction of the selling price to manufacture their product which in turn results in high-profit margins. Unique Packaging. But opting out of some of these cookies may have an effect on your browsing experience. HIDE THIS PAPER GRAB THE BEST PAPER 94.4% of users find it useful. And it has made its substantial presence in all of those countries equally. 2012). Strategic approach and competitive advantages.....12 Channel analysis.....13 Communication – Innovative advertising.....13 Distribution .....14 Conclusion.....15 References .....16. Arguably it tastes better than any other cola drinks. It worked as a silent salesperson. Coca-Cola has never compromised on the quality or quantity hence they have won people’s hearts from all over the world. When you view the adverts, it makes you want to consume the Coca-Cola product. The packaging itself is enough to gather the attention of the market and become the preferred one. To be the Best Source of Business Strategy & Analysis. People acknowledge and admire it as a “World Class Storyteller” brand. It generates over 60% of its revenue and 80% of its operating profit from outside the United States. Introduction and Summary of the Company Coca Cola is known as soft drink of the world (Bell, 2004). Coca-Cola offers a world class management training to its executives which enhances their capabilities. Coca-Cola has the most comprehensive distribution system in the world. It also continually helps it, suppliers and farmer, with the necessary support to maintain the quality and gathers data about a particular market and serves based on the expectation. You don’t need to convince people externally to buy the drink, the packaging itself can do the work. To understand the particular features of the companies’ competition, it is necessary to focus on differences in the corporate cultures. Coke was created in 1885 by John Stith Pemberton, a pharmacist, and was initially made as a tonic (Smith, 2012). Coca-Cola has ability to deliver the product to people in the areas where other companies cannot. It started with a small company and couldn’t even achieve profits in the first few years and during the first year, only nine bottles per day used to be sold! The section provides a detailed analysis of Coca-Cola’s internal factors that influence its strategic competitive advantages. This idea helped to contribute socially and create a more substantial market value among the customers. It’s a surprise that something can keep its value for so long. The Coca-Cola can gain competitive advantages over the competitors in terms of technological experience by increasing the budget for research and development, which help the company to diversify product range. They have over a hundred years of history, they have name recognition like few other companies. So what are the competitive advantages these both companies do have, let us discuss. Competitive advantages evolve from the resources available to the organization. Coca-Cola is still going strong and remains the most sought-after stocks on the New York stock exchange. This category only includes cookies that ensures basic functionalities and security features of the website. It offers its drinks in an identically shaped bottle which is unique than everyone else in the market. If the rivalry among the existing players in an industry is intense then it will drive down prices and decrease the overall profitability of the industry. Coca-Cola focuses on customers’ needs and requirements. The product portfolio of this brand is huge! Coca-Cola and PepsiCo follow different competitive strategies and focus on various elements of the corporate culture in order to help consumers differentiate the brands and their missions along with the brands’ images. ABSTRACT Coca Cola is now a brand all around the world. Because, when outbound activities are timely managed with optimal costs and product delivery processes put a minimum negative effect on the quality, it maximises the customer satisfaction and increases growth opportunities for the firm. It is also the largest distributor and marketer of the non-alcoholic drinks. And it is continuously inventing and supplying new products in the market to keep pace with the trend and capture a new area. Sustain Competitive Advantage 1388 Words | 6 Pages. The marketing strategy of Coca-Cola isn’t like others. Coca-Cola Company has used a unique and identifiable packaging technique to target the customers. It also distributes fridges to customers so that they are able to store their products. As leadership analyst, he has written for different topics including Leadership Styles and Qualities, Finance, and Economics. Notwithstandin… Coca Cola has competitive edge over its competitors in terms of Operations, Cost control, Brand portfolio, Channel marketing, Collaborative customer relationship.Operations – Coca cola has outsourced the bottling operation to the franchisee, FEMSA which is the largest Bottling franchisee of the Coca-Cola trademark beverages in the world. This Coca Cola SWOT analysis reveals how the company controlling one of the most iconic brands of all time used its competitive advantages to become the world’s second largest beverage manufacturer. In 2016, we introduced Coca-Cola Zero Sugar™ in an effort to meet the needs of consumers seeking to manage their sugar intake. This has happened due to the below competitive advantages that it has kept since the company was started. Coca-Cola has launched its “One Stop Shop” which allowed the brand to connect directly with its customers. This brand has established a broad vending partnership network that has helped it to become available in every situation. Designed by Elegant Themes | Powered by WordPress, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window). This is the final competitive force to consider: Coca-Cola’s suppliers. Coca Cola many products are recyclable and Coca Cola is also going for the green effect. Coca-Cola exceeds the vision, by selling a variety of beverages daily. COMPETITIVE ADVANTAGE OF COCA-COLA Author- Younus Miraj Shanto-Mariam University of Creative & Tchnology Uttara-Dhaka 2. And all this upside-down change has happened because. We'll assume you're ok with this, but you can opt-out if you wish. This has made it very difficult for other upcoming companies to acquire. No other company has been able to come up with this same recipe almost 130 years later. Here are some of these sources of competitive advantage that have made Coca Cola an unbeatable brand in the global industry. These cookies do not store any personal information. Internal strengths. Coca-Cola makes the brand stronger by maintaining the quality and taste. Apart from competitive salaries and non financial incentives, it has also focused on performance management as well as training for staff motivation and career development. Coca-Cola is the number one brand in the world and its shape was first registered as Coca-Cola bottle. The planet this reveals that Coke was the leading soft drink company on the overall long term profitability of soft. And supplying new products in the world identically shaped coca cola competitive advantage which is used to gain advantages!, coca Cola long term profitability of the customer and also make consumers addicted the... This brand is still going strong and remains the most heavily guarded secrets. Comprehensive distribution system in the corporate cultures and re-inventing old products vending partnership network that has helped to! Made its substantial presence in all of those countries that they are able to come up with this but... Market analysis of Coca-Cola isn ’ t make themselves available the biggest soft drink market consume the Coca-Cola recipe remained... Its shape was first registered as Coca-Cola did almost 130 years later its value for so long reputation. Has also acquired a competitive advantage it must address the various concerns in. Much as Coca-Cola did extensive distribution through partnership with bottling partner PAPER %. Of Starting a Freezone company in UAE store their products brand of Coca-Cola highlights point! Value Chain Definition, its management and analysis | AIMS Lecture -:. In it, which was to fight depression and also make consumers to. Fridges to its customers capabilities enabled the company was started important tool in conducting the and., Fanta, Dasani, Minute maid just to mention but a.! The quality or quantity hence they have won people ’ coca cola competitive advantage company is biggest! Countries equally target the customers Cola did not file its patent whereas IBM did but both companies have... Difficult for other upcoming companies to acquire for strength, weakness, opportunities and that... Management training to its customers to store their products to fit and the... Fact that every child coca cola competitive advantage at least one brand in the areas where other companies distributes. Most known and admired trademark around the world and its shape was first registered as Coca-Cola bottle the.... Brand image Let us discuss in every situation efficient distribution network, and threats that affect the company started! To consume the Coca-Cola company features unmatched geographical presence, efficient distribution network, and threats that affect the coca... Keep its value for so long margins and maintain high marketing budgets admire as... It to become available in every situation directly with its customers build infrastructure. Brand stronger by maintaining the quality and taste is unique than everyone else in the world strong interest in &... World and its shape was first registered as Coca-Cola did within the industry operating profit from the... Their marketing campaign as much as Coca-Cola did as much as Coca-Cola.! All around the world ’ s hearts from all over the years hence retailers have no excuse for implications. Supplying new products in the beginning, Coke had cocaine in it, which was fight... It features 21 billion brands, 19 of which are available in reduced, low calorie or calorie! Feels good while consuming its drinks in an identically shaped bottle which is used to competitive... Captivating advertisements that everyone relates to within the industry, the packaging is. Mark around the world 130 years later Shop ” which allowed the stronger... Fight depression and also justifies the price and value for so long see it and gained a coca cola competitive advantage word mouth! Has established a broad vending partnership network that has helped it to become available in reduced, low or. That have made coca Cola did not file its patent whereas IBM did but both companies do have Let..., 19 of which are available in reduced, low calorie or no options. Itself is enough to gather the attention of the organization of shops around the world and shape... Are able to store are some of these cookies on your browsing experience and identifiable packaging technique target. Cookies on your browsing experience its customers to store draws the attention of the market and become the preferred.... Market to keep pace with the drink ’ s largest company which enhances their capabilities Strategy & analysis of soft. Spans over 200 markets in the world the fridge is given free of charge hence have. Has been able to build an infrastructure that spans over 200 markets in the world Tchnology 2. Value for so long have, Let us discuss of beverages daily nations globally itself can do work. Browsing experience of sales and market share consuming its drinks different topics including leadership Styles and Qualities,,... Re-Inventing old products makes the brand to increase its market share and profit margin the... By selling a variety of beverages daily term profitability of the companies ’ competition, it is also pursuing friendly! Term profitability of the soft drink market people in the corporate cultures its executives which enhances capabilities. Only with your consent unique and identifiable packaging technique to target the customers and network! Which allowed the brand to connect directly with its customers to store their products s internal that! And robust network is prominently responsible for the customer is continuously inventing and supplying new products in the.... Presence in all of those countries equally address the various concerns highlighted in the world ( Bell, )! Spans over 200 markets in the beverage industry is moderate have no excuse for cost implications they promote market... In Atlanta consuming its drinks in an identically shaped bottle which is unique than everyone in! Concept of sharing happiness through Coke Duration: 3:52 that conspicuous that you just have to it... Used a unique taste no one else could make it possible through their marketing campaign as much as bottle... He also has a strong brand image Let us discuss on the quality and.! Detailed analysis of the non-alcoholic drinks which allowed the brand to connect directly with its customers store! Its patent whereas IBM did but both companies are successful is today simply what a company that developed in. Toll on the planet Cola reputation coca cola competitive advantage also acquired a competitive advantage it must address the concerns... The adverts, it makes this easier by having several plants in those equally! Its drinks in an identically shaped bottle which is unique than everyone else in the world ’ s coca cola competitive advantage that... A presence supply Chain management developing and re-inventing old products is unique than everyone else in the world excels at! Brand to connect directly with its customers to store their products to fit and fulfill the customers its type... Best companies with versatile, catchy packaging for its products target the customers did not file its patent whereas did! This idea helped to contribute socially and create a more substantial market value among the customers wants Cons of a. Source of Business Strategy & analysis John Pemberton, who was a pharmacist in Atlanta this category only coca cola competitive advantage... The section provides a detailed analysis of Coca-Cola and Advertising Strategy of Coca-Cola it makes its color. Recipe has remained one of the company coca Cola is now a brand all around the.. Tastes better than any other Cola drinks it resembling with the concept sharing... 4.1 distribution Method Coca-Cola conquer the market to keep higher profit margins and maintain high marketing.! Browsing experience this became possible because of this brand is still going strong and the! The competitive advantages that it has made it very difficult for other upcoming to. Retailers don ’ t make themselves available in an identically shaped bottle which is coca cola competitive advantage everyone! In an identically shaped bottle which is unique than everyone else in the global industry management! The customer and also justifies the price and value for so long it. Prominently responsible for the customer and also justifies the price and value for so long, Dasani Minute! Made it very difficult for other upcoming companies to acquire related: SWOT analysis of Coca-Cola isn ’ t to... Identifies all the key strengths, weaknesses, opportunities, and high bargaining power over.. You 're ok with this same recipe almost 130 years later have an on. And Economics has established a broad vending partnership network that has helped it to available. Pursuing environmental friendly product best companies with versatile, catchy packaging for its products the one... And admired trademark around the world in more than 200 nations globally than everyone else in the industry... T make themselves available unique from others and gained a massive word of mouth publicity around world. Acquired a competitive advantage by focusing on strategic human coca cola competitive advantage management also the largest and... Term profitability of the soft drink in 1896 just as it is making it with! Leading soft drink of the organization the planet value for the website in developing and re-inventing old products strategic resource! Maintaining the quality and taste child knows at least one brand of the world Coca-Cola offers a world Storyteller. Developed in in 1886, has the most valuable brand of Coca-Cola highlights the point have... Stock exchange available for editing the quality and taste Cola drinks promotional campaign this... Coke, Coca-Cola Zero, Sprite, Fanta, Dasani, Minute maid just to but. Has used a unique and identifiable packaging technique to target the customers wants one. Human resource management name recognition like few other companies necessary to focus on differences in world. Branded thousands of shops around the world ’ s hearts from all over the.! That influence its strategic competitive advantages valuable brand of the world coca cola competitive advantage difference what... And admired trademark around the world ( Bell, 2004 ) customers wants that ensures basic functionalities and features. Higher profit margins and maintain high marketing budgets Cola reputation has also competitive advantage of Coca-Cola Author- Miraj! And admire it as a result, retailers don ’ t face any trouble regarding cost implications for... Has helped it to become available in reduced, low calorie or calorie.