Good Corporate Level Strategy Essay Example

Type of paper: Essay

Topic: Coca Cola, Company, Strategy, Business, Market, Pepsi, Products, World

Pages: 6

Words: 1650

Published: 2020/11/09

Business Level and Corporate Level Strategies

Introduction of Company
Coca cola is the leading company in the world that produces carbonated soft drinks and supply all over the world. The origin of coca cola was started when john pemberton invented a medicine and when water is mixed with it taste amazing. Coca cola was introduced in market by As a Griggs who was a leading and competent businessman. With his good business and marketing strategies coca cola soon become a famous soft drink business. Coco Cola Company makes concentrate and then this concentrate are sold to other licensed companies of coca cola all over the world. Coca Cola Company produces a large volume of drinks that is supplied all over the world. Many other drinks also introduced by coco Cola Company. More than 200 countries in the world have coke products. And it is very amazing to know that almost there are 1.8 billion consumers for coke for each day. The formula that Coca Cola Company used is still kept secret. One major ingredient that is used for making this drink is still hidden and is a trade secret. According to a myth it is said that only there are two executive of the company that know about this secret formula of Coca Cola Company. Coca cola product is given a nickname of “COKE” that became an official trade mark in 1941.
Coca Cola Company uses a franchise model for its distribution a production proves. Concentrated syrup is only produced by Cocoa Cola Company and then it is sold out to other bottlers companies all over the world. Coca Cola Company produces the soft drinks in different volume of bottles and prices according to the country economy in which it is trading. Coca cola is a leading company in all over the world and it has a big competitor that give tough competition to the coke in the business world that rival is PEPSI. There are many local brands now available in different countries that compete with coca cola. Coca Cola Company is also famous for its promotional advertising techniques. Coca Cola Company always comes up with eye catching advertisements and promotional offers that cause to attract a large portion of the customers. Coca Cola Company also engages itself in sponsoring many big sports events and also does the promotional activities in special holidays. Through its good business strategies and marketing plans Coca Company is leading all over the world. Business level and corporate level strategies are different for Coca Cola Company. We will now discuss the coca cola business and corporate level strategies in our following details.

Business Level Strategies

Coca cola is a leading brand in the world and success of this company is due to good business strategies that is used and properly implemented. For the success of every business it is very necessary that company uses a strategy that best fits with it final goals. Coca Cola Company uses the differentiation strategy at its business level. Through this strategy coco Cola Company produces unique products that are distributed almost in all parts of world. There are no price attributes that coca cola products have that make then different and for which consumer pay premium. Marketing strategies of the coca cola make the company different from other competitors. There are many loyal customers that Coca Cola Company has. Coca Cola Company uses differentiation strategy as a different drink that is served in a different style of bottle. Bottle shape of coca cola bottle shape is very attractive to people because research showed that people feel easy when bottle is shaped a little curvy. Many sizes for bottle volume are also available for coca cola (Bower, Joseph and Thomas, 1988).
The thing that makes the coca cola company attractive is its business market strategy. Target market of Coca Cola Company is actually young generation. Marketing strategies that Coca Cola Company uses includes many promotional offers and eye catching advertisements. Coca Cola Company is engaged in promoting coke in every occasion according to the need of the culture like at occasion of Christmas, Eids, holly and Easter. Each time coke comes up with new eye catching advertisement that effect on hear and minds of people. Coca cola company also give sponsorship to the major sports events like world cup of cricket, hokey and football, other than these other sports activities on national or international level is sponsored by Coca Cola Company. Some other activities like local matches also sponsored by this company. In major retailing store Coca Cola Company used eye catching promotional activity with attractive colors and decors (Varadarjan and Menon, 1988).
Many seasonal offers are also given with the fluctuation in weather. A very good differentiation strategy that Coca Cola Company used is invention of coca cola freestyle machine in which customer can easily make mixture of different flavors to make a new taste for them. No doubt coca cola is still leading in the world but they have to work hard for making their business strategies more powerful to differentiate from their competitors. There is also need of new products from this company. Coca Cola Company produces nonalcoholic soft drinks as there is a need of time for making new taste soft drinks to make more customers. The big success factor in the company is its pricing and distribution strategies. Coca cola products prices are very good according to need of that market. Coca cola covered a large area of the world in which its products are supplied. Aim of coca cola company is that they will make their product available to the customer at its nearest approach so that every time you fee thrust you can easily get coke for satisfying your drink, therefore in large departmental stores coca cola achieve the corner of shelf that is near to approach in customer and clearly visible for them. Still coca cola has major market with many loyal customers as coca cola try to keep themselves loyal by giving many pricing relaxation on many occasions. Special discount offers also impact good image on the business. When we talk about the coca cola business strategy we always come up with differentiation strategy that coca cola use give their customers a unique product with value (Varadarjan and Menon, 1988)

For the success of every business it is very important that its corporate level strategies also are very strong. There are many strategies that are used for business success. Coca Cola Company uses the product development strategy at its corporate level. In this strategy Coca Cola Company uses penetration strategy. Acceding to this strategy the aim of the business is to penetrate into the new market or old market with new strategies. Coca cola introduces itself into new and old both markets. To enter into existing market with the same product there is a need of good marketing and advertising strategy that Coca Cola Company also uses.
Coca Cola Company always tries to introduce itself into new market with its existing product. In the history of many year success coca cola introduces its products into many areas of the world and in many new markets. Some markets accepted the new product rapidly while in some markets coca cola when introduces grow no very speedy but with the passage of time with it good adverting and promotional offers coca cola make people attractive and habitual to their drink. Noël more than 200 countries in the words are selling coca cola and daily consumption of coca cola is very huge. Every day many factories of coca cola make soft drink that is then distributed in almost every corner of the world. Coca cola penetrating strategy when combined with its good marketing and advertising strategies it will both make huge population as loyal customers.

Competitive Environment of Coca Cola

Every successful business has to face completion in the market. It is the competition that makes the business to work hard and grow. The coca cola company also faces a strong competitive market. The big competitor of coca cola is PEPSI. Pepsi is also a carbonated soft drink only there is a difference of taste that differentiates them from each other. Distribution strategy of Pepsi is also very powerful. In every store where coke is available there is also shelf of Pepsi there. When we compare the strategies of Pepsi and coca cola we see that they are not mush very different from each other. Pepsi also used good promotional offers like capon and prizes is associated with Pepsi. Pepsi promotional activity like low price in special occasions gives a huge benefit to Pepsi. Pepsi also have the activity of hidden prize on the lid of bottle. Pepsi has also many new products available into the market. When we compare the strategies of pepsin and coca cola we see that almost both companies’ uses the same strategies only difference in come with the promotional activities campaigns. Advertisements of Coca Cola Company is very interesting and eye catching. Pepsi also sponsor big sports events. Pepsi has many new brands and is coming up with new products with time while coca cola is stick to only a few soft drinks. Coca cola has also came up with new products in the industry to keep the success maintain. Pepsi also uses the new product development strategy and try to penetrate into the market. Pricing technique of Pepsi is a little bit better than coca cola as in big occasions Pepsi reduces its price than coca cola than give benefit to the Pepsi. Both Pepsi and coca cola use big celebrities into theory commercials. There is also a difference of taste according to many people that make them different. Apparently both looks same but many people prefer coke (Ndofor, Sirmon and He, 2011). According to many surveys, when conducted to judge the popularity of coca cola and Pepsi the results are in favor of coca cola products now. There is a huge number of people that love to drink coke this thing make the coca cola company a leading brand in the world (Roberts and Dowling, 2002).
Distribution strategy of Pepsi is also very good. We can see that with many fast food meals Pepsi is served. Pepsi Company has good strategy that they have made agreements with larger food chains for supplying their product. Almost Pepsi and coca cola go side by side with each other when we see the strategy but coca cola has a step ahead than Pepsi and known as leading brand and Pepsi comes on number second. Both companies are working had in competition. Overall business strategy and corporate strategy of coca cola seems good as it has greater sales and customers in the world. There is a huge number of loyal customers are found now in the market.

Slow Cycle or Fast Cycle Market

Slow cycle market means that there is a difficulty in imitating all the resources and capabilities for making a product. In slow cycle there is no pressure of competitive market affects. The company that operates under the slow cycle market strategy may have monopoly over the market. There is less competition found in slow market cycle (Ndofor, Sirmon and He, 2011).
Fast cycle market means that company stable in competition for many years. As Coca Cola Company is using fast cycle market strategy in which with passage of time the company holds its position more strong than past. This is due to the fact that with time company introduces new plans into its strategy to keep itself stand at a strong position for many years. In slow cycle company gets a monopoly position and then a time of decline came but with adopting the fast cycle strategy the company keeps itself into the competition by making new strategies acceding to the need of time. Coca Cola Company uses its strategies that are according to need of market. The company penetrates into a market and then holds a strong position into the market. With the passage of time as coca cola is becoming stronger. Fast cycle market is a new concept in the business strategy. According to this concept there is a new thinking style of leading and managing the company. Due to competitive development in fast cycle marker strategy the company shows better performance than the others. When we look at the performance of coke we see that coca cola has changes its production style also. Now there are many new machineries that are robotic and many tasks that are performed by man power now is taken with machines to reduce cost and time. As we all know the fact that time is Monet and Coca Cola Company uses the techniques in the production that take less time therefore the production of coca cola products occurs at a very large level and then the distribution channel of coca cola is very strong. Everyday many tons of bottles are distributed among many retailing stores of the many countries. The whole production and distribution process make the coca cola company to take advantage in competition. When we look at the business and corporate strategies of coca cola companies we come to know that due to these strong strategies coca cola company is making a good name in the fast cycle market (Bower, Joseph and Thomas, 1988).


Bower, Joseph L., and Thomas M. Hout. "Fast-cycle capability for competitive power." Harvard Business Review 66.6 (1988): 110-118.
Ndofor, H. A., Sirmon, D. G., & He, X. (2011). Firm resources, competitive actions and performance: investigating a mediated model with evidence from the in‐vitro diagnostics industry. Strategic Management Journal, 32(6), 640-657.
Roberts, P. W., & Dowling, G. R. (2002). Corporate reputation and sustained superior financial performance. Strategic management journal, 23(12), 1077-1093.
Varadarajan, P. R., & Menon, A. (1988). Cause-related marketing: A alignment of marketing strategy and corporate philanthropy. The Journal of Marketing, 58-74.

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