Strategies in Action Coca Cola

COCA-COLA

Coca-Cola: Strategies in Action

From the onset, it would be prudent to note that one strategy that the Coca-Cola Company is following is sustainability. More specifically, as the company indicates, it “is continuing to work toward a World Without Waste” (Coca-Cola, 2022). One advantage of this particular strategy is that it could motivate more socially conscious customers to purchase the company’s products – resulting in an increase in the bottom line. Further, it benefits the company on the reputational front – which could help with the attraction and maintenance of quality workforce. However, the choice to become an eco-friendly enterprise could attract significant initial costs.

Yet another strategy that Coca-Cola appears to be pursing is diversification. For instance, the company recently “announced a global relationship to debut the iconic Jack & Coke cocktail as a branded, ready-to-drink (RTD) pre-mixed cocktail option” (Coca-Cola, 2022). Thus, the company appears keen on diversifying its beverages away from soft drinks. This could benefit the company from an increased revenue standpoint. It could also cushion the company’s earnings from industry-specific downturns. However, there is the possibility that this move could have a negative impact on the company’s core products – i.e. by focusing too much on the new product/market.

One strategy that Coca-Cola does not appear keen on is cost leadership. This is more so the case given that the company has in recent times indicated its intentions to hike prices of its various products going forward (Lucas, 2021). A cost leadership strategy could have the effect of further expanding Coca-Cola’s market share. However, the said strategy would be difficult to apply in the present depressed economic environment – and could, as a matter of fact, hurt the company’s earnings as customers pursue cheaper alternative products.

Next, Coca-Cola has not deployed its massive potential and capabilities on the technological front – i.e. in as far as its embrace and uptake of technology is concerned. Opportunities that exist on this front are inclusive of utilization of big data to make better use of information. This could help in the company’s sales and marketing efforts. However, there are various privacy and confidentiality concerns that could emerge out of the move to embrace technology of this nature.