The Pestel model and Porter’s five forces model was used to identify the company’s opportunities and threats. The barriers to entry in the carbonated beverage market are really high which means that the threat of other companies successfully entering into the industry is low and this has been a big advantage for the company. Brand loyalty is another. People today in general are becoming increasingly aware of a healthier lifestyle in light of new information regarding nutrition and this has been a major threat to the company and the market in general.
The Company’s strategic competitive advantage stems from its three main core competences. The manufacture and distribution system of its beverages (products), branding through marketing campaigns and the innovative nature of the company in its market are all major strengths. One thing special about the company is that it uses its resources in a way unique to its competitors and consumers see value in their product.
The Coca Cola Company understands the clout of their stakeholders and they have set their strategic objectives to meet their individual demands. This message has been firmly implanted in the company’s mission statement.
Coca cola competes on the basis of value added for customers. People will pay the premium over lesser brands for the coca cola product and this may be why they have chosen (from Porters model) a differentiation strategy. This has paid off for them. Their manufacturing and distribution system has been an effective business level strategy. The Coca Cola Company and its bottlers can work together to determine local responsiveness and produce products that best suit the local tastes in that particular geographical area. Amongst other