Business-Level and Corporate-Level Strategies
(The Coca-Cola Company)
Business level strategy is concerned on the company decisions applied in creating and enhancing business decisions that offer a competitive advantage against the competitors. Business level strategies are made after an organization evaluates the product line, competition and the target market among other factors; which in turn influence the distribution and promotion channels. Corporate level strategy is concerned with opportunities that are lying outside the parent industry; it mainly comes with diversification (Campbell et al, 2013). Shareholders among other stakeholders are involved in corporate level strategies. Business level strategies and corporate level strategies work together in The Coca-Cola Company in making the units and the whole business entity more and more profitable (Pendergrast, 2013).
The Coca-Cola Company is a multinational organization with its headquarters based in Georgia in the United States. The beverage company manufactures, markets and retails beverage syrups and concentrates that are nonalcoholic in nature. The Coca-Cola Company brand is globally recognized (Pendergrast, 2013). The Coca-Cola Company is a public company with its shared being traded at the New York Stock Exchange; it is in the beverage industry. Previous assignments considered Ford Motor Company which is in the automotive industry and The Walt Disney Company which is in the mass media industry. One of the greatest rivals to Coca-Cola Company is PepsiCo Inc., which is also a public traded company in the beverage industry (PepsiCo, Inc., 2013). This paper reflects at the business level strategies and the corporate levels strategies at The Coca-Cola Company and also at the PepsiCo Inc.
Business Level Strategies at Coca-Cola Company
Business level strategy used by The Coca-Cola Company identify with the differentiation strategy (Pendergrast, 2013). This has been influential in making the company separated and unique from other organizations offering the same product in the target market. The Coca-Cola Company has managed in creating a service and a product that is valued and unique to the customers. Customers in one way or another pay a premium for the non-price attributes. It has been noted that The Coca-Cola Company differentiates its products through diverse and unique advertising and marketing campaigns in all parts of the world (Pendergrast, 2013). The campaigns are used in making sure that the target market remains loyal to the products and in convincing for more and more customers. The tricks have worked over the years, and surveys indicated that most of The Coca-Cola Company customers are loyal to the brand.
The Coca-Cola Company offers its products in diverse bottle shapes and sizes depending on the target market. Surveys carried out by the company indicated that majority of the target customers like slim and curvy bottles; which is part of the differentiation strategy used by The Coca-Cola Company (Pendergrast, 2013). The organization has launched a Coca-Cola freestyle machine that offers freedom of choice among its customers, the machine has been influential in allowing the target customers match and mix diverse flavors of the classic Coca-Cola beverages.
In my opinion, differentiation strategy is a good choice in The Coca-Cola Company, considering sustainability of the brand in the long term success. There is much to be done on the differentiation strategy as the target market face modernization, an indication that the tastes and the preferences of the target market is ever changing (Pendergrast, 2013). The Coca-Cola Company must be willing to adapt the changes to its products in building a competitive edge. The Company must introduce new beverages that will have the capability of maintaining the high status of the brand (Pendergrast, 2013). The Coca-Cola Company could also introduce alcohol drinking culture into the beverage industry, an example being ‘Coke and Whisky’, where the two beverages sell as one unit. This will call for The Coca-Cola Company to collaborate with the companies making beer such as the Whisky Company.
Corporate Level Strategy at The Coca-Cola Company
The Coca-Cola Company has one of the most valued brands in the world alongside Google and Apple among others. The company is the most established and largest in the world considering beverage industry operating in more than two hundred nations of the world. The Coca-Cola brand has taken decades to build, the corporate strategy in The Coca-Cola Company is well accustomed to the mission of the company (Pendergrast, 2013). Mission statement asserts that The Coca-Cola Company is committed in refreshing the world, inspiring happiness and optimism and in creating a difference and value. The mission of The Coca-Cola Company declares the company’s purpose as guided by the manifesto. The Coca-Cola Company is committed in refreshing the world in spirit, mind and in the body. The brand is also expected to inspire optimisms through the actions of the organization and through the brands (Pendergrast, 2013). The Company is committed to create value in areas the organization is engaged in. the vision of The Coca-Cola Company is tied along sustainable growth of the organization, it has been noted that the vision act as a guide along the businesses taken by The Coca-Cola Company in describing the accomplishments of the organization.
The Coca-Cola Company brings joy, value, refreshment and fun to the stakeholders, a model that positively contributes to protecting and nurturing the Coca-Cola brand both within and outside United States. Fulfilling the obligations of the shareholders is part of contributing to better lives of the shareholders. The Coca-Cola brand is environmentally acceptable and safe, basing on the diverse investments geared at research and innovation depending on the external demands affecting the brand. The Coca-Cola brand is committed to meeting the long term interests of its stakeholders identifying with customers, shareholders and the employees at large (Pendergrast, 2013). The Coca-Cola Company as a result of the corporate level strategies owns up more than five hundred brands within the system depending on the target market.
It has been noted that some of the most influential brands identify with juices, enhanced waters, light beverages, diet beverages, waters, juice drinks, coffees, teas, sports drinks and energy drinks among others. Four of the most established brands within The Coca-Cola Company identify with the Coca-Cola brand, Diet Coke brand, Fanta Brand and the Sprite brand among others.
In my opinion, The Coca-Cola Company is committed in fulfilling the interests of the stakeholders. This is a long term strategy in that The Coca-Cola Company will work extra hand in meeting the interests of the employees, customers and the shareholders among others (Pendergrast, 2013). This is a good choice since it covers all areas that will enhance sustainability of the organization. The Coca-Cola Company in strategic management engages goal setting, analysis, strategy formation, strategy implementation and strategy monitoring.
The Coca-Cola Company is committed in enhancing quality in its brand, hence setting aside the quality policy. This is critical in making sure that the confidence and trust of the customers is maintained. Consumers are continually kept informed on the quality of The Coca-Cola Company brands, which is critical in serving long term success (Pendergrast, 2013). Global quality assurance seal ensures that the products are kept as original as possible without compromising the exact needs of the target market.
Competitive Environment (Pepsi)
The Coca-Cola Company is the global leader in the beverage industry, competition of The Coca-Cola Company depends on the jurisdiction. The common competitors in the United States identify with PepsiCo, Inc., Nestle S.A., and Dr. Pepper Snapple Group, Inc. among others. Pepsi is one of the closest competitors of The Coca-Cola Company in the United States and in the world. Pepsi is a product of PepsiCo, Inc., the brand dates back to 1893 and has a substantial market share within the United States (Capparell, 2008).
The business level strategy of Pepsi is tagged on low cost differentiation strategy (Campbell et al, 2002). It has been noted that Pepsi takes use of the economies of scales which is facilitated by mass production of the products. Pepsi is committed in differentiating its products through marketing and taste (PepsiCo, Inc., 2013). The low cost differentiation used by Pepsi is part of pricing strategy. Pepsi is offered at low prices that stimulate high demands that in the end enhance in increasing the overall market share (PepsiCo, Inc., 2013).
The corporate strategy adopted by Pepsi identify with the expansion strategy which is part of the global strategy (PepsiCo, Inc., 2013). Pepsi according to its financial status is growing with sustainability, quality and profitability. Pepsi is slowly taking shape in new markets; Pepsi operates for more than one hundred and ninety nations of the world. International expansion strategy is geared at venturing further into the developing nations and to the least developed nations in the world. The world holds much potential as long as Pepsi engages the right strategies depending on the diversity of the target markets (PepsiCo, Inc., 2013).
In my opinion, both The Coca-Cola Company and the PepsiCo, Inc. have potential of sustainability in the future. It is only that the Coca-Cola brand is better positioned in the global market as compared to the Pepsi. In most of the target markets, The Coca-Cola brand was the first to be established, hence gaining a competitive edge against other companies. Business level strategies for the two companies are similar identifying with differentiation, although The Coca-Cola Company focus at the product and packaging aspect while PepsiCo Inc. focus at the low price differentiation (Capparell, 2008). The Coca-Cola Company corporate level strategies focus at the interests of stakeholders while PepsiCo Inc. focuses at international expansion strategy (PepsiCo, Inc., 2013).
The Coca-Cola Company is building on a stronger brand as compared to PepsiCo Inc. which will make the difference at the end of the day. The strong brand in The Coca-Cola Company will influence the target market in choosing the product, the brand will create advocacy and loyalty, the brand will enhance The Coca-Cola Company to command on the premiums associated with price, the brand will differentiate the product from others in the target market, the brand will enable The Coca-Cola Company to integrate diverse opportunities in the line of operation and that the brand will foster a growth platform.
Slow Cycle and Fast Cycle Markets
Twenty first century is characterized with slow cycle markets and fast cycle markets depending on jurisdictions. This is an indication that the business level strategies and the corporate level strategies used by The Coca-Cola Company and by the PepsiCo, Inc. must vary with the markets of operations (Campbell et al, 2013). Since the two companies are multinational organizations, it means that segmentation strategy will be crucial in grouping diverse markets depending on the performance and characteristics. Market segmentation for both companies will ensure that they market their products to a certain type of customer groups or units in making sure that the organizations fulfill the objectives of the marketing plan.
Business level strategies and corporate level strategies are influential in developing sustainable organization (Campbell et al, 2013). It takes the efforts of diverse stakeholders in coming up with strategies that serve the interests of the organization. Both The Coca-Cola Company and PepsiCo, Inc. have a respected brand in the world (Capparell, 2008). It is only time will tell as the competition become more and more stiff in the target market.
Campbell, A. et al. (2013). Corporate-Level Strategy: Making Decisions About the Business Portfolio. Hoboken, New Jersey: Jossey-Bass.
Campbell, D. et al. (2002). Business Strategy: An Introduction. Oxford: A Butterworth-Heinemann.
Capparell, S. (2008). The Real Pepsi Challenge: How One Pioneering Company Broke Color Barriers in 1940s American Business. New York: Free Press.
Pendergrast, M. (2013). For God, Country, and Coca-Cola: The Definitive History of the Great American Soft Drink and the Company That Makes It. New York: Basic Books.
PepsiCo, Inc. (2013). Retrieved November 15, 2013, from Pepsico.com: http://www.pepsico.com/
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