The Coca-Cola Company has built its reputation as the leading producer of soft drinks across the world. The Company applies a strategy that engages operations within a large area within especially in Latin America. These operations are characterized through four structures that entail coverage of the area in Mexico as well as Central America, South America, Brazil and Asia. Additionally, the company has engaged in goals that aim at maximizing growth and profitability through the creation of value of their shareholders. These goals are achieved through transformation of the commercial models towards focusing on the value of customer's potential as well as the use of value-based segmentation approach. This approach aims at capturing the valued potential of the industry. In addition, the company has implemented in multi-segmentation strategies in the major markets that target distinct market clusters that are divided by consumption occasion. The market is also divided into a competitive intensity as well as socio- economic levels.
The company has also implemented proper structured products, pricing strategies and packaging through different distribution channels. The push to drive product innovation along the different product categories is also coupled with the development of new business structures and distribution channels (Hill, 2014, P. 216). An analysis of the company in terms of strategic implications of identified resources and capabilities relies on the strengths realized within the company. Some of the strengths that have contributed to these aspects include the best global brand across the world in terms of value. The company also has the largest market share in terms of beverage as well as strong marketing and advertising (Hill, 2014, P. 216).
An analysis of the company in terms of strategic implications of identified resources and capabilities indicates that the economic variables applied may bring about downturns. These downturns may have negative impacts on the company's sales especially because the products are non-essential. Additionally, macroeconomic factors such as inflation, labor prices may also have impacts on the operations engaged within the company (Schuerkens, 2014, P. 333). Societally, the company may be impacted in terms of health problems brought about by the soft drink beverages. This renders their products as threats as well as an opportunity but in the real sense their sales might go down. Additionally, opposition from social groups in several countries as a result of environmental issues involved in the production processes may be another effect (Schuerkens, 2014, P. 333).
Arguably, marketing plays a very crucial role in building the strength of the Coca-Cola Company. However, recent studies have indicated that the new channels of advertising and marketing may have huge impacts on the company. The same case applies to the type of packaging applied within the company as the different packaging types have boosted the sales (Fava Naves et al., 2004, P. 56). Similarly, market segmentation has been one of the strategies applied within the company in order to group the potential customers according to their characteristics and purchase patterns. This segmentation is applied through a criterion that follows various factors such as geographic segmentation, place of consumption, type of the product as well as demographics. Branding has also largely contributed to the success of the company as their products are recognized globally. However, competition from companies such as Pepsi seems to be challenging the processes of the company (Fava Naves et al., 2004, P. 58).
The Coca-Cola Company has employed strategies such as customer loyalty as well as ensuring that the suppliers enjoy the bargaining power which facilitates acquiring of goods at the lowest prices. Consequently, these approaches are largely accompanied by corporate social responsibility where the company has engaged in activities such as conserving energy through recycling their waste and control over the emissions.
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