It is essential for a company to anticipate the reaction of its competitor before making a strategic decision. A strategy can be deemed effective based on the reaction it generates from the competitor. The essence of strategic thinking involves anticipating every move of the adversary, like in a game of chess. Knowing how the competitors will react, or at least how the competitors could react, dramatically improves the chances of making the right strategic move. Certain reactions from competitors will play in favor of your own level of profit, while others will threaten it.
We will study the case of the 'The Coca Cola Company' here, because it would be interesting to understand the reasons behind its success. We will be able to analyze as to how the company has managed to defend its position, compete with the competitors and stay successful. Hence the question: How can the company ensure that it remains the market leader for soft drinks?
In 1886, Dr. John Pemberton, a pharmacist, was conducting experiments in his laboratory in Atlanta to discover an effective remedy against fatigue. Using kola nut, he developed a brilliant and tasty beverage, whose prickly taste and bubbles would soon conquer the whole world. The new discovery bore the name Coca-Cola, a name which points to the principal ingredient used to manufacture this drink. This drink supposedly improves stamina and produces the same ‘pick-me-up' effect as coffee.
Coca-Cola, like many other multinationals, is well established in our consumer society. No later than in the 90s, "The Coca-Cola Company" emerged as one of the most renowned companies in the United States and was at the time, a master model in management. The company can draw on a rich past, with its logo as a smoking gun.
Indeed, the current logo is almost identical to the original and has retained the same colors, namely red and white, through the ages. These colors proved to be so symbolic that they were adopted by the Virgin group. Let us not forget that Coca-Cola, which, through its advertising, has imposed the same color clothing on Santa Claus. Another strength of Coca-Cola is the choice of Neville Isdell as CEO.
The board believed it had made the right choice regarding his selection as the CEO not only because he knew the business, but also because he was nicknamed the "Indiana Jones of Coca-Cola" and had a reputation as a revolutionary leader. He was willing to challenge the traditional dogmas of society. It is he who, when he was director of the company's Europe operations, had pushed the company in the sale of bottled water, a decade before the central decision-makers did the same in the United States.
What is the main strategy of a global brand? The globalization strategy is to replicate slowly in all countries the factors that have made successful the local strategy. Such an approach is necessarily conservative and proceeds country by country, region by region.
Tags: marketing mantra behind Coca- Cola's success, Neville Isdell, globalization strategy of Coca Cola
[...] The two main competitors of Coca-Cola are the "PepsiCo" (Pepsi Cola, Pepsi Max, Pepsi Light . ) and "Virgin” group (Virgin Cola Regular, Virgin Cola Light Note however that this is not because the company is number 1 in the world of soft drinks that it is highly successful. Some products such as Dasani (England), New Coke and OK Soda proved to be failures. I. The environment of Coca-Cola Analysis of the strengths and weaknesses of the company Coca-Cola, like many other multinationals, is well established in our consumer society. [...]
[...] The kings of the XXIst century soda begin with youth in the crosshairs. Undisputed leader, Coca-Cola does not know what to invent to reach young people in their daily lives. Download online nightclubs through the stage of the Olympia brand multiply operations seduction. Pepsi, he creates the event with "Samurai". This blockbuster advertising two minutes (CLM BBDO) Beyonce and Jennifer Lopez shows of acrobatics to compete Kill Bill impassive under the eye of David Beckham. Communication leading to a challenger Patrick Mercier, founder of Challenger House advertising agency, has studied the face-to-face "Pepsi apply the art of war, according to Clausewitz: when your enemy is bigger than you, there is no use of to face with the same weapons. [...]
[...] She did anyway, no other choice but to continue its diversification. Even change the model of development. The above strategy should be accompanied by a change in behavior Coca: decision-making faster and more reflective. Indeed, if Coca could make better decisions and faster, he probably would not have missed opportunities that have been presented to him (the purchase of the company RedBull, buy New Company Wave PepsiCo before . ) The internal environment of the company would also be somewhat modified. [...]
[...] The agency McCann-Erickson is proud of having saved $ 90 million in production costs for Coca-Cola in the past twenty years thanks to the filmmaking world. Practicing launching a product in several countries simultaneously, it eliminates the problem of delayed launches and time shifted from one country to another. This shift has the disadvantage of leaving time to preempt competition locally some ideas seen elsewhere. Location One of the strengths of the brand is to have established itself as an international brand. In almost every country where it implants, Coca-Cola installs plants and hiring local labor. [...]
[...] Since 1982, the company has created more soda selling better than Coca-Cola light. However, according to the president of a consulting firm in Santa Barbara, their fizzy drinks are over 30 years old and are outdated. According to the makers, maintaining four core brands in good health are 85% of the functioning of the company. They could make a good deal by buying Red Bull but Isdell, the current CEO, maintains that the recovery of Coca-Cola come from its ability to better execute millions of simple things that company employees do every day. [...]
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