Case: Coca-Cola Company Cokes Business Coca-Cola is the worlds largest beverage company.

It operate in more than 200 countries and market a portfolio of more than 3,000 beverage products including sparkling drinks and still beverages such as waters, juices and juice drinks, teas and coffees and energy drinks. Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. Target Market The company's beverages are generally for all consumers. However, there are some brands, which target specific consumers. For example, Coca-Cola's diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. This type of market approach refers to market segmentation. The Coca-Cola Company when advertising has a primary target market of those who are 13-24, and a secondary market of 10-39. Cokes Strategy and Organizational Structure To achieve the companys goal that to supply everyone their favorite drink and to satisfy the consumer needs and wants. Coca-Cola Company kept building on its fundamental strengths in marketing and innovation, driving increased efficiency and effectiveness in interactions with its system and generating new energy through core brands that focus on health and wellness. The Coke Company poised to capture the opportunity from several views. Firstly, it every day explores new ways to create and share beverages to energize, relax, nourish as it delivers more than 3500 beverages to the world. The Company continues to expand its product portfolio in order to meet consumers' evolving preferences. Secondly, as the world's largest distributor of non-alcoholic beverages, it maintains a trusted local presence in communities it serves. It is constantly looking ahead to anticipate what its communities may need and gathering resource to support them. Thirdly, Coca-Cola is the most well known trademark, recognized by 94 per cent of the world's population because it holds a good reputation and make their product price are affordable. The Coca-Cola Company uses marketing strategies to differentiate its product from its competitors to gain a competitive advantage. The extension of product differentiation in 2002, the Coca-Cola Company extended the products of Coke and developed the new products. This extension responded to consumer demands and generated sales and profit. Cokes strategy also combines both transnational and global views. Coca-Cola second main objectives are to provide profit to the shareholders and increase the market share. To handle the enormous capacity of its business and enhance the return to its investors, the Coca Cola Company has divided up into six operating units: Middle and Far East Groups, Europe Group, the Latin America Group, North America Group, Africa Group and Minute Maid Company. The Head Quarters is situated in the United States. Therefore, Coke is predominantly organized into an international area structure.

SWOT Analysis -Coca-Cola has been operating successfully for over a century and known world-wide. (S) - Coca-Cola has a large share of the cola segment. (S) -The Coca-Cola Company is the misrecognized trademark in the world. (W) -The contract The Coca-Cola Company has with its bottlers is under constant negotiations. (S) - Per capita consumption of Coke is low in India and China compare with Europe and U.S. (S) - Coke has significant growth opportunities and sufficient capital to expand. (O) - It has the potential to innovate and differentiate the company's products to sustain a competitive advantage, such as try to merge with other global businesses to eliminate competitors. (O) - It is capable of expanding into other markets other than the soft drink market. (O) - Has many major global competitors with its main one being PepsiCo. (T) -Coca-Cola can be substituted by other soft drink products made by its competitors. These competitors may develop marketing strategies to eliminate The Coca-Cola Company. (T) -There may be an economic downturn in the business cycle. (T) Cokes Revenue Change Coca-Colas total revenue keeps increasing every year. From 2001 to 2002, its revenue increased about 23%, from 2002 to 2008, the revenue went smoothly. But during 2008 t o2009, its revenue dropped about 12.83%, Coke faced some pressure from a global increase in commodity prices and stuck into the economic recession. Higher costs for sweeteners, aluminum, juice and plastic used in bottles will translate to Coke's 2011 costs rising by up to $400 million. However, Coke offset the costs by raising prices, although executives said that the increase won't exactly mirror the commodity pressure. Instead, Coke will stick to its long-term pricing strategy, and plans to implement price increases that won't startle consumers who are still cost-conscious, then the revenue revived and the growth goes up until 39.73% high. Core Competencies Coca-Colas core competency is the manufacture and distribution of nonalcoholic beverages, and their edge competency is how they create brands through marketing campaigns. Brand building is Coca-Cola's core competency. Coca-Cola is known throughout the world. Their brand and logo are never mistaken, which is why consumers feel comfortable in purchasing Coca-Cola products. Coca-Cola is a cash cow in the soft drink industry. Recommendation for Future Decade First, Coca-Cola should continue to prosper by innovating and adapting to the local needs of its customers throughout the world. Second, product differentiation is strength for the company to deal with these five pressures. Coke Company should keep working to build prestige for its brand, providing high levels of customer service and establishing high levels of customer loyalty as differentiators. Third, to sustain its competitive advantage, Coke should focus on increasing their operational effectiveness as a way of gaining a competitive advantage based on the fact that increasing operational performance can lower production costs and these can be passed on as lower prices. Reference

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http://www.bookrags.com/essay-2003/6/14/53228/5227 http://noisebetweenstations.com/personal/weblogs/?p=1684 http://cocacolasoriginalcoke.blogspot.com/2009/02/coca-colas-core-competency.html http://www.foxbusiness.com/markets/2011/02/09/coca-cola-q-profit-soars-acquisition-gainsrevenue-growth/

Exhibit 1 (Porter s Five Forces) The Economic Power of Customers High. Customers can buy any type and any kind of beverage as they like. The prices are affordable for general customers

The Economic High. Power of Suppliers The Competitive Force of Substitute Products The Threat of Potential Entrants The Strength of Competitors High. There are many other brands of beverage company would probably take Coke s market.

High. There are no much high technology required for beverage industry, also, beverage industry are more and more popular by customers. Low. The main competitor is PepsiCo in beverage industry around the world. The competition is not fierce.