Strategic Management
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Coca-Cola is a generational and iconic brand that will be forever respected due to its global influence, impact, strategic management principles and its exemplary business acumen. Coca-Cola has been able to navigate the competitive beverage industry because of its overall approach to achieving the company goals & objectives. This can be mainly attributed to the various strategies that they tend to apply to their business model year after year, in their attempt to garner success. “Strategic planning is much more than a roll of the dice; it is an educated wager based on predictions and hypotheses that are continually tested and refined by knowledge, research, experience, and learning. Survival of the firm often hinges on an excellent strategic plan.” (David & David, 2019).
After reviewing the presses releases, it is my belief that the two strategies that Coca-Cola happen to be pursing are: (1) Related Diversification – Adding new but related products. (2) Market Development – Introducing present products into new geographic area.
The Related Diversification – correlates to: “The Coca-Cola Company today announced that it has acquired full ownership of BODY ARMOR, a line of sports performance and hydration beverages that is incremental to the Coca-Cola beverage portfolio and has significant potential for long-term growth. In 2018, Coca-Cola initially acquired a 15% stake in BODY ARMOR with a path to full ownership, based on a pre-determined discount. Coca-Cola is paying $5.6 billion in cash for the remaining 85% of the company.” (coca-colacompany.com).
The Market Development – correlates to: The Coca-Cola Company Names WPP as Global Marketing Network Partner; Also Appoints Complementary Media Partner. As stated within the Press Release: The New Agency Model has Four Components:
“A Global Marketing Network Partner to manage end-to-end creative, media, data and marketing technology, across the whole portfolio.
A Complementary Media Partner to bring differentiated capabilities in select markets.
A Strategic Roster of approved agencies to provide access to the best creative minds, regardless of their location or affiliation.
(4) A common data and technology platform that connects marketing teams of five global categories, nine operating units, Global Ventures and Platform Services to the Global Marketing Network Partner, Complementary Media Partner and Strategic Roster.” (coca-colacompany.com).
The Pros are these two strategies will help to sustain the company into the future and increase its profits and its global market share. The Cons are that they are going to face stiff competition and a lot of criticism for their business decision.
Two strategies that they are not pursing are : Retrenchment & Divestiture.
REFERENCES:
David, F. R., & David, F. R. (2019). Strategic management: a competitive advantage approach, concepts and cases (17th ed.). Upper Saddle River: Pearson.
Coca-Cola corporate website. Retrieved from: https://www.coca-colacompany.com/media-center
Retrieved from: https://www.coca-colacompany.com/press-releases/new-global-marketing-network-and-media-partners-named
Retrieved from: https://www.coca-colacompany.com/press-releases/coca-cola-company-acquires-remaining-stake-in-bodyarmor
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