BRIONES, DENNIELLE XYRA V.

3-BSAcT T 2:30-5:30 PM

The Coca-Cola Company

The Coca-Cola Company is the world's largest manufacturer and distributpr of beverage
products. It is an American multinational corporation engaged in the manufacturing,
promotion and distribution of a wide rande of beverages: including soft drinks, fruit juices
and sodas, sprakling energy and sports drinks, mineral water, soy-based beverages, coffees,
yogurt drinks, and tea. The Coca-Cola Company has morethe 3,500 products under 500
different brand names. Its top brand include Coca-Cola, Sprite, Fanta, Fresca, Minute Maid,
Dasani, Mello Yello, Powerade, etc. The company has spred its business network in more
than 200 counties around the world which is supported by its 146,200 business partners and
associates. The company claims the be serving 1.8 billon consumers every day. It owns for
out of the five top seller beverage brands (The Coca-Cola Company, 2013).

Business-Level Strategies of the Coca-Cola Company

The Coca-Cola Comapny uses the following business-lvel strategies for its local and
international operations:

i. Differentiation Strategies:

differentiation strategy is used by a firm to operate in its industry in a unique and competitive
way (Hitt, Ireland, &Hoskisson, 2013). Since its inception in 1886, the Coca-Cola Company
has always focused on differentiating its products from those of its competitors in order to
established a unique position in the Golbal beverages industry. Its top most brands like Coca-
Cola, Sprite, and Fanta are manufacture under strict quality standards and by using unique
formulations. With the help of its differentiation strategy, the Coca-Cola Company is able to
maintain the top market leadership position. Differentiation is found in each and every aspect
of its business operations. For example, it uses unique marketing campaigns, labeling, bottle
shapes, and advanced plant and machineries to manufacture the top quality beverage
products. It also keeps on introducing different flavor variations in its existing products so
that consumers can taste and enjoy a wide rande of beverages from their favorite brand (The
Coca-Cola Company).
ii. Low Cost Leadership:

In addition to delivering the top quality products, the company also keeps an eye on its
increasing operational and marketing expenditures. It recognizes the importance of cost
control for gaining competitive advantage in the industry and operating in amore profitable
way. Therefore, the low cost leadership is one of the major business level strategies the
Coca-Cola Company has been pursuing since its incorporation. It strongly emphasizes on
internal efficiency so that its product can be manufactured at the minimum possible cost.
Although the Coca-Cola Company has a wide array of products, there is high level of
standardization in their manufacturing processes, packaging and marketing. It has
maintained a tight control over its manufacturing, overhead, marketing and R&D costs.

iii. Focus Strategy:

The company uses focus strategy in both low cost and differentiation dimensions. For its
focused low-cost strategy, it has defined a specifc line of bevereage products through which
it can target a specific market and achieve low cost by manufactuing these products under
highly efficient manufacturing processes. For example, its top most favorite brand, Coca-Cola
is manufactured and promoted under focused low cost strategy. Coca-Cola is old in more
than 200 countries of the world, but has slight variationsin its taste, flavor, and ingredients.
The company produces its Coke for every target market under complete focus while
designing its marketing campaigns and selecting distribution networks so that it can serve the
potential consumers from that market in the most effective and efficient way. (The Coca-Cola
Comany, 2013).