Strategic Management
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Coca Cola has unveiled a new bottle for its products. On October 21, 2022, Coca-Cola revealed a next generation prototype bottle: its first made from 100% plant-based plastic (bPET), excluding cap and label, produced using technologies that are now ready to be commercially scaled across the industry. The new prototype plant-based bottle is the product of partnerships with different renewable technology providers, all working to develop sustainable, future-facing packaging solutions, including Changchun Meihe Science and Technology and Virent, Inc (The Coca Cola Company, 2022).
This reveal seems as though it is a forward integration, which is defined in our reading as gaining ownership or increased control over distributors or retailers. In addition to, market development, define as introducing present product into new geographic area (David, 2019. P. 130). Coca-Cola is the dominant non-alcohol beverage retailer in the world, as it was discovered throughout our readings. Plant-based materials are evolving throughout our world rapidly. It would make sense this dominant leader would be part of the Plant-Based trend. This involvement benefits the customers and the world eco-system. The negatives would probably be the cost for material, which could be much higher than the traditional plastic bottle, and if it is, will the cost increase the sales in product? Another concern is the new material of quality standards. Will it uphold the content placed into the bottles?
Coca-Cola acquired full ownership of BODYARMOR, 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. Mike Repole, Co-founder, and Chairman of BODYARMOR set a goal of becoming the number one global sports drink. He finds that joining ventures with The Coca-Cola Company, will help in meeting that goal (The Coca Cola Company, 2022).
Market Penetration is happening with this partnership. Market penetration is defined as seeking increased market share for present products on present markets through greater marketing. Related Diversification is also taking place. It is defined as adding new but related products (David, 2019. p. 130). The benefits are increase consumers participation which increases in sales and revenues. The negative would be for BODYARMOR. Even though Repole is optimistic that this partnership would make a stance across the globe as the leading sports drink, the negative on BODYARMOR would be the loss of brand. Coca Cola Company brand and representation across the globe is highly likely to dominate the partnership. Other cons could be hidden problems. My question would be, why BODYARMOR cannot be a global leader of sports drinks on its own? Are there any hidden problems that holds them back from being a leader?
References
The Coca Cola Company. (2021, October). Coca-Cola Unveils New Prototype Bottle Made From 100% Plant-Based Sources. Retrieved by https://www.coca-colacompany.com/press-releases/coca-cola-unveils-new-prototype-bottle-made-from-100-percent-plant-based-sources
The Coca Cola Company. (2021, November). The Coca-Cola Company Acquires Remaining Stake in BODYARMOR. Retrieved by https://www.coca-colacompany.com/press-releases/coca-cola-company-acquires-remaining-stake-in-bodyarmor
David, F. R., & David, F. R. (2019). Strategic management: a competitive advantage approach, concepts, and cases (17th ed.). Upper Saddle River: Pearson.
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