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BUS 5910 Unit 8 Final Paper
BUS 5910 Unit 8 Final Paper
BUS 5910 Unit 8 Final Paper
University of People
Innovation and reinvention are the keys to business success. This case studies is
about the Coca-Cola Company. The largest manufacturer and supplier of soft drink
syrups and distillates worldwide. The Coca-Cola Company started out in 1886 as a
manufacturer and retailer of beverages with its iconic product, Coca-Cola. The Coca-
reinvention, which has contributed to its long-term success. The Coca-Cola Company
works around the clock and in every country to make the world a better place while
Company background
and is now primarily focused on producing and selling syrup and concentrate for Coca-
Cola, a sweetened carbonated beverage that is a cultural icon in the United States and
markets other soft drinks and citrus-flavoured beverages. The largest beverage
producer and distributor in the world, Coca-Cola offers more than 2,800 products in
more than 200 nations. It ranks among the biggest corporations in the American. The
The Coca-Cola System franchise model served as the foundation for the business,
which sold only concentrate to its numerous bottling partners around the world.
and maintains its brand strategy, the bottling partners develop the ultimate branded
products, take care of marketing and distribution, and interact with customers directly
(Chua, n.d).
Problem Statement:
beverages. Sparkling beverages have received harsh criticism from health authorities
and consumers in recent years (Jafri, F. 2015). These drinks, also known as CSDs
(carbonated soft drinks), have been criticised for their high sugar and caffeine content.
Several health agencies have also accused the drinks of causing obesity, diabetes, and
Consumers are gradually shifting away from CSDs and toward still beverages.
Coca- Cola's noncarbonated beverage portfolio includes flavoured water, juices, ready-
to-drink tea, coffee, and sports drinks. According to a significant industry report that
showed volume has now stabilized at levels last seen in the mid-1990s, sales of
carbonated soft drinks declined for the tenth year in a row in 2014, with Pepsi and
Another issue for the Coca-Cola Company is the growing number of competitors
ahead of the competition. Many of the competitors are small businesses, allowing
them to be more nimble and inventive than large corporations like Coca-Cola. The
corporation's franchise business model was also under threat. Bottlers had an
Coca-Cola revenues were based solely on the volume of concentrate sold to bottlers,
not on the price paid by customers. Because of this, Coca- Cola's relationships with its
lifestyles and cultures. The company has made the necessary efforts to innovate new
products while employing the same marketing strategies. As a result, consumers have
This will increase consumers' trust in the quality of the products. As previously
stated, bottler incompetence is costing the company market share and may do so in
the future. Though the company provides quality guidelines to distributors, it may be
difficult to improve such guidelines because bottlers wield significant power over the
company. Because of the high cost of installing production lines, there are relatively
According to Yoffie (2004), a small bottling plant would cost more than $75
approximately 100 such plants. Correcting these figures to the present shows that it is
quite costly to set up plants; as a result, the cost restriction limits competition among
bottlers; as a result, they have a lot of clout over other companies seeking their
services because they have few alternatives. They hold the company hostage with
However, if vertical integration was used to purchase these bottling companies, the
company would be solely responsible for the quality of its products. Thus, owning the
Statement of Cause(s):
People are becoming more aware of, and concerned about, living a healthy
lifestyle. The decline in demand for Coca-Cola beverages is due to a shift in people's
eating habits, which may be one of the company's problems. Consumers in their later
years are more concerned about their health and the nutrients they require; as a
result, they are increasingly focused on living longer. Customers and health officials
issues, the commercial strategy and business environment of carbonated soft drinks
must change. Carbonated soft drinks, according to health officials, cause dehydration,
increased sugar intake, weight gain, and calcium depletion. In the United States, there
is strong evidence that rising refined carbohydrate intake and, particularly, added
sugars, particularly in the form of sugar sweetened beverages, are linked to weight
gain and obesity rates (Lavie, C. et al., 2018). For example, Coca-Cola Classic contains
A 350ml bottle of cola has 140 calories in it. The high levels of phosphoric acid
and citric acid found in sodas such as Coca-Cola beverages can remove calcium from
the bone, leach calcium from your teeth, and reduce calcium absorption. Excess sugar
consumption has been shown to have negative metabolic effects in both human and
gain, an increased risk of type 2 diabetes, and other changes associated with NCDs
The company's main and closest competitor is PepsiCo, which was founded 12
years after Coca-Cola. PepsiCo has a competitive advantage over Coca-Cola because it
the snack sector has boosted revenue and sales growth. Because of the similarities in
manufacturing, taste, and pricing, people are finding it easier to obtain PepsiCo
Every year, the Coca-Cola Company uses three million tonnes of plastic for
packaging. Plastic products in large quantities are discarded in the environment. The
majority of these are plastic garbage bottles, such as mineral water bottles and
beverage bottles. (BBC News. 2019). Pollution has a significant negative impact on the
hazardous substances.
After consuming plastic garbage, marine species have died and been poisoned.
consequences, despite the fact that there is still very little information on plastic
ingestion in commercial fish species, with only 7.5 percent of them having been
studied. Plastic pollution also degrades the quality of the land surface and destroys it.
This is because when plastic reacts with water, it emits harmful chemicals. Despite the
fact that the Coca-Cola Company is investigating a number of plastic waste solutions,
According to Mikel (2007), companies that want to conquer the future must build on
what they have now rather than relying on future competencies that cannot be guaranteed.
Coca-Cola has clearly identifiable core competencies that, if the company focuses on, the
future will be easy to conquer. In the framework of this case study, the following alternative
articulate the offering in a way that covers the natural ingredient component of Coca-
Cola while also engaging the cola's traditionalists. In doing so, it should heavily
position in the customer's mind. The advertisement should depict the true natural
essence that not only fights obesity but also provides consumers with a healthy taste
and lifestyle. To drive demand before the total distribution in the markets, the
advertisement should market before the total distribution in the markets (The case
solutions, n.d).
2) The company should broaden its knowledge in providing strategies aimed primarily at
increasing consumer satisfaction, as this would imply increase product growth and
would help to improve another aspect of the brand's image. This should also include
taglines that associate more of its consumption with happiness, as health is a major
3) The Coca-Cola Company should diversify its product line more effectively. The
company can create new products to meet today's demand for a healthy lifestyle.
According to recent studies, the number of customers who prefer organic and natural
4) The Coca-Cola Company should conduct new research that is both transparent and
corporate communications are in their best interests. This means that management
should make certain that corporate communications are handled professionally. This
is due to the fact that corporate communications have a direct impact on the nature
of the image that the organization projects. If the organization manages its corporate
(Wowessays, 2020).
Sweetened beverages have evolved into the primary source of calories in the average
person's daily diet. Many studies indicate that consuming too much sugar is more likely to
lead to obesity than consuming too much fat. Furthermore, it has been found that the rise
in sugar consumption around the world is associated with conditions like diabetes, heart
disease, and cancer. To address this issue, the Coca-Cola Company can implement the
following recommendations.
solve problems. The business must switch to new technology in order to ensure
greater productivity and efficiency. Because technology evolves so quickly, the Coca-
Cola Company must keep track of technological revolutions to ensure that issues
such as plastic bottle waste and water scarcity are addressed in the most appropriate
and effective manner. For example, there are many technological solutions to the
related to strategic management, given the fierce competition in the soft drink
industry. The management can better meet customer needs by integrating customer
focus. This will make it possible for it to produce its soft drink products in a way that
its competitors by incorporating something into its product that provides a unique
value to its customers. This can be accomplished through well-planned and managed
marketing activities that result from perceived superior product quality and high
brand image and recognition. Cost leadership can also be attained through
manufacturing systems.
4) The management should make sure that its products are well-positioned in the
market given the aggressive competition present within the sector. This is
and research and development. The company will be able to develop new products
to meet market demand thanks to research and development. The company will be
able to raise market awareness of its products through sales promotion (StudyCorgi,
2021).
company will gain a favourable reputation through CSR, enabling it to carry out
(SRM) concept in order to foster positive relationships with its suppliers. Due to the
efficient supply of resources, this will allow it to conduct its operations cost-
7) Coca-Cola should hold more event sampling in each market to raise consumer
opportunity to try out new flavours and find the perfect beverage to meet their
needs. Furthermore, this can raise consumer awareness and encourage them to try
Conclusion
Coca-Cola, the world's leading soda beverage, with the strength of a large company
and a very good and well-known brand image, will be accepted almost everywhere in the
world. As a result, Coca- Cola's strategic focuses should on covering the entire market
However, as the soda industry has grown, many competitors, ranging from domestic
to global manufacturers, have emerged, reducing Coca- Cola’s market share in each country.
As a result, Coca-Cola must innovate in their marketing strategies. Coca-Cola, armed with
their bottling partners and the ability to 'think global, act local,' could adjust its strategy to
penetrate the market more complex and in-depth in order to continue to expand market
Chua, Y. (n.d). Challenges and Solutions: The Coca-Cola Company as a Case Study. Retrieved from:
https://pdfs.semanticscholar.org/331a/0407c3563466b1a8b6c15bb0dcf6f60b776b.pdf
Eding, G. and Joy, R. (2010, June 18). The Coca-Cola Company essay: Coke resumes operations.
Retrieved From: https://www.majortests.com/essay/The-Coca-Cola-Company-Coke-Gets-
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Glanz, K., et al., (2015). Reviews of retail food store environments and sales, and their implications
For programs promoting healthy eating. Journal of Nutrition Education and
Behaviour, 48(14), 280-288. Retrieved From: https://pubmed.ncbi.nlm.nih.gov/27059314/
Mikel, L. (2007, September 09), Marketing and management basics, (Birmingham, Soul) “Coca-cola
rises 14% on
International sales” Atlanta business chronicle, 2008. Retrieved from:
https://studycorgi.com/corporate-strategy-the-coca-cola-company/
The case solutions (n.d). Coca-Cola: Green Harvard Case Solution & Analysis. Retrieved from:
https://www.thecasesolutions.com/coca-cola-green-142040
Wowessays (2020, March 03). Free Coca Cola Case Study Example. Retrieved from:
https://www.wowessays.com/free-samples/free-coca-cola-case-study-example/