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COMPETITIVE ADVANTAGE OF COCA-COLA

Author- Younus Miraj


Shanto-Mariam University of Creative &
Tchnology
Uttara-Dhaka
ABSTRACT
Coca Cola is now a brand all around the world. Every day they promote their market every
corner of the world. More than 60 percent soft drinks liked people like coca cola. They have
different kinds of products like Coke, Sprite, Fanta, Lift etc. They always try to provide their
product with low price with different packaging. As it is a soft drink, Coca-Cola Company
follows Intensive Distribution. It is found more or less everywhere in Bangladesh. In terms of
promotions they use Emotional Appeal.

INTRODUCTION
Coca-Cola is a cola (a type of carbonated soft drink) what sells in stores, restaurants and
vending machines. It is produced by The Coca-Cola Company. The Coca-Cola Company
offers nearly 400 brands in over 200 countries or territories, which shows its reorganization.
The Coca-Cola Company only produces concentrate syrup which is then sold to various
bottlers throughout the world who hold a Coca-Cola franchise. Executive summary this
reports gives internal and external audit of coca cola.

Coca Cola though was the company with the most obstacles. I think there are many different
things that should be taken into consideration when you are trying to find out which issues
that have attempted Coca Cola. Coca cola owns more than half of the worlds beverages.
Coke is affordable in all countries. It was not out of the price range for an afternoon snack.
Coca cola is recognized by 94% of size worldwide so youth worlds population can use it for
a crowd or as a personal snack drink.

COMPETITIVE ADVANTAGE
Competitive advantage involves communicating a greater perceived value to a target market
than its competitors can provide. This can be achieved through many avenues including
offering a better-quality product or service, lowering prices and increasing marketing efforts.
Sustainable competitive advantage refers to maintaining a favorable position over the long
term, which can help boost a company's image in the marketplace, its valuation and its future
earning potential.[1] Competitive advantage occurs when an organization acquires or develops
an attribute or combination of attributes that allows it to outperform its competitors. These
attributes can include access to natural resources, such as high grade ores or inexpensive
power, or access to highly trained and skilled personnel human resources. New technologies
such as robotics and information technology can provide competitive advantage, whether as a
part of the product itself, as an advantage to the making of the product, or as a competitive
aid in the business process for example, better identification and understanding of customers.
[2]
TYPES OF COMPETITIVE ADVANTAGE

When a firm sustains profits that exceed the average for its industry, the firm is said to
possess a competitive advantage over its rivals. The goal of much of business strategy is to
achieve a sustainable competitive advantage.

There are two basic types of competitive advantage:(1-2)[3]

1. Cost advantage

2. Differentiation advantage

1. Cost advantage:

A competitive advantage exists when the firm is able to deliver the same benefits as
competitors but at a lower cost benefits that exceed those of competing products. Thus, a
competitive advantage enables the firm to create superior value for its customers and superior
profits for itself.

2. Differentiation advantage:

Differentiation by a firm from its competitors is achieved. When it provides something


unique that is valuable to buyers beyond simply offering a low price.

Cost advantage

COMPETITIVE
ADVANTAGE

Differentiation
advantage

FIVE FORCE MODEL


Since its introduction in 1979, Michael Porters Five Forces has become the de facto
framework for industry analysis. The five forces measure the competitiveness of the market
deriving its attractiveness. The following is a Five Forces analysis of The Coca-Cola
Company in relationship to its Coca-Cola brand.
There are a given a chart the below of five force models:

Figure 1: Chart of five force model.

1. Threat of New Entrants/Potential Competitors:

There is an increasing amount of new brands appearing in the market with similar prices than
Coke products. Coca-Cola is seen not only as a beverage but also as a brand. It has held a
very significant market share for a long time and loyal customers are not very likely to try a
new brand.

2. Threat of Substitute Products:

There are many kinds of energy drink soda or juice products in the market. Coca-
Cola doesnt really have an entirely unique flavor. In a blind taste test, people cant tell the
difference between Coca-Cola and Pepsi.

3. The Bargaining Power of Buyers:

The individual buyer is no pressure on Coca-Cola. Large retailers have like Wal-Mart and
have bargaining power because of the large order quantity but the bargaining power is
lessened because of the end consumer brand loyalty.

4. The Bargaining Power of Suppliers:

The main supply for soft drink is included carbonated water, phosphoric acid, sweetener, and
caffeine. The suppliers are not concentrated or differentiated. Coca-Cola is likely a large or
the largest customer of any of these suppliers.
5. Rivalry among Existing Firms:

Currently, the main competitor is Pepsi which also has a wide range of beverage products
under its brand. Both Coca-Cola and Pepsi are the predominant carbonated beverages
and committed heavily to sponsoring outdoor events and activities. There are other soda
brands in the market that become popular, like Dr. Pepper, because of their unique flavors.
These other brands have failed to reach the success that Pepsi or Coke has enjoyed.

COMPANY PROFILE ORIGIN


a) The first Coca-Cola recipe was invented in Covington, Georgia,

by JOHN STITH PEMBERTON, originally as a coca wine called

Pemberton's French Wine Coca in 1885.

b) The first sales were made at Jacob's Pharmacy in Atlanta,

Georgia, on May 8, 1886, and for the first eight months only nine

Drinks were sold each day.


c)
It incorporated in 1892 as Coca-Cola Company (the current corporation).(a-c)[4]

COMPANY PICTURE
Figure 2: Picture of The coca cola company.
HEADQUARTERS

The Coca-Cola Company, Atlanta, USA

COMPANY PROFILE

The world is changing all around us. Coca Cola Company is founded in 1886. World's
leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and
syrups, used to produce more than 230 beverage brands. The corporate headquarters are in
Atlanta, with local operations in nearly 200 countries around the world. The Coca Cola
Company is a leader in the cokes industry, with thousands of employees and offices in the
entire world, making it an emporium of beverages. [5]

MISSION OF COMPANY

There are given below of company mission:

To refresh the world - in mind, body and spirit

To inspire moments of optimism - through our brands and actions

To create value and make a difference everywhere we engage

VISSON OF COMPANY

To achieve our mission, we have developed a set of goals, which we will work
with our bottlers to deliver :( A to Z)[6]

Profit: Maximizing return to shareholders, while being mindful of our overall responsibilities

People: Being a great place to work, where people are inspired to be the best they can be

Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy
people's desires and needs

Partners: Nurturing a winning network of partners and building mutual loyalty

Planet: Being a responsible global citizen that makes a difference

Productivity: Be a highly effective, lean and fast-moving organization

VALUE OF COMPANY
Our shared values that we are guided by are:

Leadership

Passion

Integrity

Accountability

Collaboration

Innovation

Quality

VARIETIES OF PRODUCT

There are given the below verities of products:

SL NO PRODUCT NAME SL NO PRODUCT NAME


Coca-Cola
1 5 Ceil
Diet Coke
2 6 PowerAde
Coca-Cola Zero
3 7 Simply
Dasani
4 8 Coca Cola light

IMAGE OF PRODUCTS

Coca-Cola Diet Coke Coca-Cola Zero


Dasani
Ceil PowerAde Simply
Coca-Cola light

Figure 3: Image of variety products.

COCA-COLA STRATICES

Coca cola owns more than of the worlds beverages. Coke is affordable in all the countries.
It was not out of the price range for an afternoon snack. Coke comes in a variety of sizes
worldwide so you can use it for a crowd or as a personal snack drink Coca-Cola is recognized
by 94% of the worlds population.

MARKETING STRETEGY

Examines how Coca-Cola has strategically positioned itself within the worlds soft drinks
market. Given that they operate in over 200 countries, they are faced with a clear choice of
whether to standardize their product offerings globally and reap the potential benefits of
economies of scale, adapt their offerings to a particular market.

Going
Global

Our
Coke Pumps Quality
Promises
Targeting
Coca Hookha young
MARKETING Mind
STRATEGY
Change Of
Coca Cads Bottle
Designs

Cocateria Fun Island


Figure 4: Chart of marketing strategy.

1. Going Global:
To take up global marketing strategy through standardization and integration of the many
services to ensure uniform growth for the company Coke throughout the world. From now
onwards Global marketing strategies will be incorporated not in a specific area or country but
other country also which was neglected till now, which will get 100% recognition to the
company COKE.

Figure 5: Image of going global.

2. Our Quality Promises:


Quality Is The Highest Business Objective. Have achieved GOLDEN PEACOCK
NATIONAL QUALITY AWARD 2004 in India and are marching forward to achieve such
more awards globally. Though there were many problems in quality, the quality department
has taken an immediate action to ensure that consumers do not lose interest

Figure 6: Image of our quality promises.

3. Targeting young minds:


Cokes commercials are basically based on young generations. so, the young generation is the
target market of Coke because they want to represent Coke with the youth and energy but
they also consider about the old people they take then as a co-target market.

4. Change Of Bottle Designs:


While targeting young minds of India they are also changing the design of the bottle to attract
the young minds of India. As bottles of Coke Company have always been simple we are
going to launch designer bottles with few new old attractive tastes.

Figure 7: Image of bottle design.

5. Fun Island :
To provide is a real fun time in a private island of Coke Company. This island is mainly
meant for college couples on a special occasion. To have fun things like

coke fountain
coke Halloween parties
coke games
cock competitions

Figure 8: image of Fun Island.


6. Cocateria:
To open worldwide cafeteria like cocateria. Where we are going to have all the varieties of
drinks only of coco Cola Company including refreshments

Figure 9: Image of Cocateria.

7. Coca Cabs:

We are providing private cabs for tourists for their personal use with limited free coke drinks
in the cab for the customers.

Figure 10: Image of coca cabs.

8. Coke Hookah:

Coke hookah is planning to introduce a coke flavor hookah. This flavored hookah combines
the taste of generations which are not harmful and are suitable for girls, ladies, old people etc.
Figure 11: Image of coke hookah.

9. Coke Pumps:

To install coca pumps all over the world .this will reduce the cost price of the soft drink
compared to the bottled price and will create more demand in the market.

Figure 12: Image of coke pumps.

SWOT ANALYSIS

STRENGTH WEAKNESS

1. The best global brand in the world in 1. Significant focus on carbonated drinks
terms of value ($77,839 billion)
2. Undiversified product portfolio
2. Worlds largest market share in
beverage 3. High debt level due to acquisitions

3. Strong marketing and advertising 4. Negative publicity

4. Most extensive beverage distribution 5. Brand failures or many brands with


channel insignificant amount of revenues

5. Customer loyalty

6. Bargaining power over suppliers

7. Corporate social responsibility

OPPORTUNITIES THREATS
1. Bottled water consumption growth 1. Changes in consumer preferences

2. Increasing demand for healthy food 2. Water scarcity


and beverage
3. Strong dollar
3. Growing beverages consumption in
emerging markets (especially BRIC) 4. Legal requirements to disclose
negative information on product labels
4. Growth through acquisitions
5. Decreasing gross profit and net profit
margins

6. Competition from PepsiCo

7. Saturated carbonated drinks market

Figure 13: Chart of SWOT.

COMPETITORS
The biggest competitor of coke is Pepsi.
Pepsi is often second to Coke in terms of sales.
In Bangladesh, Coca-Cola ranked first and behind of the coca cola have Pepsi, seven
up, Mountain Dew and so on.

CONCLUSION
To produce the world's best is known product. The Coca-Cola Company has built internal and
external structures to support the delivery of its business goals. The Coca-Cola Company has
to employ the highest quality processes and establish standards which guarantee the
production of a standardized product which meets consumers' high expectations each and
every time they drink a bottle or can of Coca-Cola. More than complying with standards and
acquiring first rates, Coke aimed at enhancing the shopping experience and enjoyment of
refreshments.

REFFERENCE
1. http://searchcio.techtarget.com/definition/competitive-advantage
2. http://en.wikipedia.org/wiki/Competitive_advantage
3. http://www.quickmba.com/strategy/competitive-advantage/
4. http://en.wikipedia.org/wiki/Coca-Cola
5. http://en.wikipedia.org/wiki/The_Coca-Cola_Company
6. http://www.coca-colacompany.com/our-company/mission-vision-values
7. Figure 1- http://valuationacademy.com/porters-five-forces-in-action-sample-analysis-
of-coca-cola/
8. Figure2/https://www.google.com.bd/search?
q=coca+cola+company+ltd&client=firefox-a&rls=org.mozilla
9. Figure 3/ http://www.coca-colacompany.com/brands/product-descriptions
10. Figure4/https://www.google.com.bd/search?
q=varieties+coca+cola+images+with+name&client=firefox-a&rls=org.mozilla:en-
11. Figure 5- https://www.google.com.bd/search?q=varieties/coca-cola
12. Figure6/https://www.google.com.bd/search?
q=varieties+coca+cola+images+with+name&client=firefox-a&rls=org.mozilla
13. Figure 7/http://en.wikipedia.org/wiki/Coca-Cola
14. Figure 8/ http://www.coca-cola.co.uk/about-us/coca-cola-mission-vision-
statement.html
15. Figure 9/ http://www.slideshare.net/anwar4595/coca-cola-ppt-14684222
16. Figure10/http://beta.fool.com/stockdissector/2012/10/31/cocacolastrengthweaknesses-
opportunities-and-t/15515/
17. Figure 11/http://www.diffen.com/difference/Coke_vs_Pepsi
18. Figure12/http://www.hoovers.com/companyinformation/cs/competition.The_Coca-
Cola_Company.3f8a006eaf87d773.html
19. Figure13/https://www.google.com.bd/search?
q=varieties+coca+cola+images+with+name&client=firefox-a&rls=org.mozilla