It goes without saying that being a large multinational corporation, the Coca-Cola company should constantly improve its strategies for stable development in the future.
The Coca-Cola Company may be regarded as one of the largest and most renowned and successful beverage corporations across the globe. Taking leading positions in relation to almost any aspect of the business is characterized by a large number of brands, international manufacturing and supply, a diverse community, and a focus on sustainability (Our company, no date). In addition to brand equity, which may be regarded as the corporation’s major strength, it spends huge sums on advertising and marketing every year (Gehani, 2016). As a result, according to Business Insider, 94% of the global population recognizes the company, and no less than 10,000 Coca-Cola soft drinks are consumed every second in the world (Business Strategy Hub, 2020). In addition, the company owns manufacturing, distribution, and warehousing facilities in more than 200 countries (Pratap, 2019). Having a considerable number of rivals in a highly competitive market, Coca-Cola nevertheless keeps prices affordable for almost all social classes.
PepsiCo is the main competitor of the Coca-Cola Company that is preferred by a considerable number of customers as well (Lubin, 2012). Thus, it is essential for Coca-Cola to evaluate its strengths to become more advantageous. Thus, the main advantage of PepsiCo is the development of its food snack category, including Lays, Doritos, Cheetos, Munchies, and others, while Coca-Cola focuses only on beverages (Product information, no date). In addition, PepsiCo applies the business model of complementary products that increases sales as well (Investopedia, 2020). That is why the improved strategy of Coca-Cola should primarily include the development of other categories of products.
Coca-Cola should consider the modern tendencies of innovations, sustainability, and a healthy lifestyle as well (Banks, 2016). Thus, the company should continue to reduce sugar in its beverages or offer more non-sugar alternatives (In our products, no date). In addition, it should focus on e-commerce to develop its business during and after the pandemic (How Coca-Cola is pivoting its innovation and commercial strategies in the Covid-19 era, 2020).
Reference List
Banks, H. (2016) ‘The business of peace: Coca-Cola’s contribution to stability, growth, and optimism’, Business Horizons, 59(5), pp. 455-461.
Business Strategy Hub (2020) Coca Cola SWOT analysis 2020 | SWOT analysis of Coca Cola. Web.
Gehani, R. R. (2016) ‘Corporate brand value shifting from identity to innovation capability: from Coca-Cola to Apple’, Journal of Technology Management & Innovation, 11(3), pp. 11-20. Web.
How Coca-Cola is pivoting its innovation and commercial strategies in the Covid-19 era (2020). Web.
In our products (no date) Web.
Investopedia (2020) Coca-Cola vs. Pepsi’s business models: what’s the difference? Web.
Lubin, G. (2012) Here’s the real difference between Coke and Pepsi. Web.
Pratap, A. (2019) Coca Cola sources of competitive advantage. Web.
Product information (no date) Web.