Strategies AT Coca Cola: Group 5

STRATEGIES
AT
COCA COLA
Group 5
TABLE OF CONTENTS
01 02 03
Definition & Overview Requirements Strategic Positioning &
Value Chain
04 05 06
Summary
Global Expansion &
Profit Growth
1. Definition & Overview
Strategy : actions that

managers take to attain the
goal of firm
(increasing the profitability
and profit growth )
COCA OVERVIEW
3.1% of total beverage

products worldwide 200 countries
3500 different brands

COCA OVERVIEW
COCA COLA GENERIC AND
INTENSIVE STRATIES
Intensive strategy
Market Product
penetration development
one of the critical strategies Product development is the
Coca-Cola has used to grow strategy of bringing more
its sales products to the market to
increase sales and revenue
Market
development
This is the strategy of
entering new markets or
regions and selling to new
customers
Generic Strategies:
The primary generic strategy used by Coca-Cola
is that of cost leadership. This is a strategy
employed by several big brands of the world that
are leading in the market.
loves products’ low prices

03
Strategic
Positioning
A maximum score of the seven
elements of the extended marketing
mix a is 7*5= 35.
Sum of all beads:
3.75+1+4.25+2.4.25+4+3.4.25=22.75
22.75 / 35 *5 =3.25
Figure .. Coca-Cola Quantified

MICHAEL PORTER PETER DOYLE
Figure .. Porter’ 5 forces model
Competition from rival sellers
VS
Threat from potential new entrants
● Low possibility of new entrants
● Have different distribution deals
● Have brand dominance in the

market.
Competition from producers of
substitute products
● Main substitutes for Coca-cola

are the Caffeine products
● The switching cost is low for

the customers.
● The substitutes are of good

quality
Supplier bargaining power
● Relies on ethical standards

while choosing their supplier.
● Ensure that their suppliers and

bottling partners are matching
the standards as per the law
● The suppliers are being

assessed as per the Supplier
Guiding Principles
Customer bargaining power
● Have bargaining power because

of the large order quantity
● The bargaining power is reduced

because of consumer brand
loyalty.
● Customers have low bargaining

power as they buy in low
quantities
VALUE
CHAIN
Primary activities
Inbound logistics Operations
• 10,000 farmers and suppliers. • Concentrating development and all
• Raw materials: ingredients, packaging and the administrative tasks of
machinery, and goods and services. headquarters
• Operates at a local scale in every
community where it does business.
• Does not own or control all its
bottling partners.
Outbound logistics Marketing and sales

• Consists of bottling partners and
distributors • The most recognizable and known
• The partners then sell the product to for investing a very heavy
the customers. expenditure on marketing.
• The customers include grocery stores, • Uses print media and outdoor
restaurants, street vendors, etc. marketing to promote its brand.
Support Activities
Technology Human Resource Management
- Technological innovation through R&D • Pays attention to hiring, developing talent

• Coca has 6 R&D centers connected to external and creating a professional working
technology environment
• assessment hubs connecting it with partners, • Focuses on employee motivation and
tech startups, and university researchers. engagement.
• Focus on performance management to
provide the employees with career growth.
Procurement
Firm Infrastructure
• Uses technology to make the entire process
easier and efficient. • Coca-Cola has managed a large infrastructure,
• Maintained good relationships with its • Educating its suppliers and focusing on
suppliers and provided guidelines innovation through its R&D centers.
04
Global
Expansion &
Profit Growth
EXPANDING THE MARKET
DOMESTI
C
Transferring products → foreign markets where local

competitors lack these skills or products.
Established in 1886 in the

United States.
“Technical Observers” → set up,

supervise and monitor the operations
of bottling units that would distribute
Coca-Cola to US troops abroad
After the 1940s

Core competencies: characteristics that make a business or an
individual stand out from the competitors
What makes Coke different from other beverage companies?

Coke’s core competencies
TASTE
TOP SECRET FORMULA
Well
organizational
structure
LOCATION ECONOMIES
Performing a value creation activity in the optimal location for that
activity, wherever in the world that might be
GLOBAL WEB
● Where perceived value is maximized
● Where the costs of value creation are minimized
LOCATION ECONOMIES
GLOBAL
WEB
Coca Cola Company Bottling partners
05
Experience
Effects
Learning effect
In 2013, Coca-Cola Refreshments – the North

American bottling arm of The Coca-Cola Company –
embarked on the rollout of a large-scale system
requiring the shift of more than 60,000 users to a
common enterprise solution called Coke One North
America, while also refranchising the North American
Coca-Cola bottling network and establishing new,
independent bottlers

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STRATEGIES

Strategy : actions that

3.1% of total beverage

3500 different brands

loves products’ low prices

Sum of all beads:

Figure .. Coca-Cola Quantified

● Low possibility of new entrants

● Have different distribution deals

● Have brand dominance in the

● Main substitutes for Coca-cola

● The switching cost is low for

● The substitutes are of good

● Relies on ethical standards

● Ensure that their suppliers and

● The suppliers are being

● Have bargaining power because

● The bargaining power is reduced

● Customers have low bargaining

Outbound logistics Marketing and sales

Technology Human Resource Management

- Technological innovation through R&D • Pays attention to hiring, developing talent

Transferring products → foreign markets where local

Established in 1886 in the

“Technical Observers” → set up,

After the 1940s

What makes Coke different from other beverage companies?

In 2013, Coca-Cola Refreshments – the North

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