Strengths of the Coca-Cola Company

Strengths of the Coca-Cola Company

            The Coca-Cola Company is arguably the largest beverage company in the world, owing to the strengths associated with it. The company has remained in operation since 1886 and has witnessed several challenges that have played a crucial role in making the company stronger. A company that effectively uses competitive advantage stands above other companies and eventually dominates the company. The ability to manage a brad over the years has seen the Coca-Cola company manage four of the world’s largest non-alcoholic beverage brands; Coca-Cola, Diet Coke, Fanta, and Sprite. The Coca-Cola Company has grown to become a family brand for most families with its products, reaching more than two hundred countries. The strengths associated with The Coca-Cola Company are based on its strong brand name and the diversification related to its activities.

A dominant company can be seen through the strength of its market share in its field of business. The Coca-Cola Company has managed to keep its market share strong in the beverage industry. Arguably, the Coca-Cola Company is the largest non-alcoholic beverage company in the world and owns more than five hundred non-alcoholic beverage brands across the world (Cola & Schweppes, 2014). Also, the company distributes the products of the brands they own in a bid to maintain the uniqueness of their brand. The company’s marketing strategy has given it a significant advantage over its competitors, and only Pepsi and Nestle have managed to keep phase with the competition given by the Coca-Cola Company. The huge market share has given the Coca-Cola Company a theoretical and practical advantage over its competitors. For example, the theory of economies of scale has been essential in developing the strengths associated with The Coca-Cola Company. The economies of scale help the company to share costs with the brands it owns so that it can distribute its products cheaply. Also, the company size can help the company to exercise market power over suppliers and competitors. For example, the company can dictate the price of the goods from its suppliers as well as acquiring the smaller competitors to keep the market free of competition. Moreover, the Coca-Cola Company ensures diversification of goods to win a large market.

Globalization is beneficial to companies that take into consideration diversification. Different people have different taste preferences and cannot fall in love with the same brand. The Coca-Cola Company takes advantage of the diversified customer needs to come up with brands that take care of the needs of the customer across the world. The different brands owned by The Coca-Cola Company produce different tastes of beverages hence a large market for the company (Vahvanen, 2013). Generally, the coca-cola drink is the most popular drink, although other products have continued to become popular. More than forty percent of the revenues enjoyed by the Coca-Coca Company come from the coca-cola drink, which has continued to win preference among customers. The company owns several billion-dollar brands that support their diversification efforts. Generally, the diversified portfolio of the company gives it an advantage over its competitors. For example, the company does not have to depend on one or two products for the sake of its revenues. Therefore, the risk of losing revenues when one product falls out of favour is mitigated. Also, the production of several beverages with different tastes helps in meeting the needs of many customers. The diversification of brands sets the benchmark high for competitors hence enjoying the competitive advantage. Moreover, the Coca-Cola Company has shown strength in maintaining an incredible brand hence huge customer loyalty.

Customer loyalty is essential to the success of any company. The Coca-Cola Company has, over the years, managed to keep its customers loyal in various ways. Maintain customer loyalty is not simple, and a company that manages to maintain a loyal network can only be said to be strong. One of the ways that have helped the Coca-Cola Company in maintaining the loyalty of their customers is the maintenance of a strong brand identity. The brand name has been used by most families in countries where the Coca-Cola Company has managed to an established business. The popularity of the name has ensured that customers do not choose other brands, and thus loyalty is maintained. Another method that improved the customer loyalty of Coca-Cola Company customers was the use of customer names and photos on the company bottles. Customers were encouraged to buy and post a picture on social media, showing them drinking the company’s products. Generally, the company has remained strong in keeping its customers loyal.

In sum, the Coca-Cola Company has managed to remain strong in the beverage industry by maintaining a strong brand name, customer loyalty, and diversification. The company has contained to hold a huge market share value despite competition from other beverage companies, which have not been able to oust the company for the several years it has remained in business. Generally, the Coca-Cola Company’s strengths have been essential in ensuring that it stays relevant in the beverage industry.

References

Cola, C., & Schweppes, C. (2014). The Coca Cola Company. Human Rights Policy.

Vahvanen, J. (2013). Impact of the economic crisis on the profitability and solvency of Finnish     forest industry companies.