- Define and discuss the current business and corporate strategies of your team company.
Packaging and differentiation strategies are the current strategies of Coca Cola Company. By definition, the packaging is simply the business of packing goods by wrapping them with attractive covers to attract customers. On the other hand, differentiation is the ability to deliver organized services in a way that line of distinction is clear (Mauborgne, 2004). Cost leadership strategies are one of the corporate models which coca-cola company have raised emphasis to attain low-cost producer. The product design is organized in such a way that no extra cost can occur. The company has employed the operational processes and used production, thus making cost leadership strategy work best. The coca-cola company has embraced active manufacturing and distribution networks to achieve a cost leadership strategy through able management.
What are the strengths and weaknesses of the current strategies?
Cost leadership strategy has several benefits, which include; reduction of competition from the global market, the sustainability of the business is increased, and better profits on the team and organizations are provided. Besides, the strategy creates capital, which is, in return, used for the company growth, and that is why coca-cola has got so many scholarships and promotions. The strategy has its weakness, and in our case, coca-cola company experience fragmented markets where brand loyalty fails to attract more customers as intended. There is a likelihood of competitors like Pepsi to offer threat by producing less expensive products.
Urgent decision needing to be made to ensure competitive sustainability
Although Coca-Cola boasts a considerable market share in the beverage industry, many of its competitors have adopted vigorous marketing campaigns to bring their products to the customers’ attention. Although none of these companies can single-handedly beat Coca-Cola, their combined threat has proved very fruitful with Coca-Cola’s market share gradually decreasing, and its annual profits were stagnating or declining. The best strategic move that could help Coca-Coca empower its competitive sustainability is to invest more resources into more social media campaigns that can improve customer awareness and increase its customer base (Mauborgne, 2004). Given the success of some of their previous attacks in the United States, deploying effective marketing campaigns aimed at their bigger global market could give them a sustainable competitive advantage over its competitors.
References
Zenger, T. (2013). What is the theory of your firm?. Harvard Business Review, (13). Retrieved 18 August 2020, from https://hbr.org/2013/06/what-is-the-theory-of-your-firm.
Porter, M. (2008). The Five Competitive Forces that Shape the Strategy [Ebook] (pp. 1-17). Harvard Business Review. Retrieved 18 August 2020, from. https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy
Mauborgne, K. (2004). Blue Ocean Strategy. Havard Business Review, 76-86. Retrieved 18 August 2020, from. https://hbr.org/2004/10/blue-ocean-strategy
Hamel, G., & Prahalad, C. K. (2010). Strategic intent. Harvard Business Press.