Coca-Cola principal business model
Coke’s (KO) distribution model is fundamental to its success. This innovative business style has served the company well since 1894. The company, founded in 1892, has used a franchise distribution strategy since 1889. The Coca-Cola Manufacturer is the largest non-alcoholic drinks company, with consumers in many countries. It makes many drinks, including drinks, sports drinks, juices and energy drinks.
The Coca-Cola Company has two divisions: Concentrate and Finished Products according to (Maamoun, 2020). The company makes money selling finished products to retailers or wholesalers, and bottling partners who then sell them to their customers. The company also manufactures and sells fountain syrups to restaurants and convenience stores, which use them to make ready-to-drink beverages.
Coca-Cola goals and strategies
To get the most out of each market sector, a business uses market segmentation. It was important for Coca-Cola to separate the market into three distinct segments to achieve maximum growth. For the sake of establishing a strong foundation for future expansion, sales volume was given precedence over profitability. Increasing the availability of low-cost beverages allowed this. In rich countries, aluminium and glass bottles were two of the most profitable breakthroughs.
Core competencies of Coca-Cola
Coca-competitive Cola’s advantage is its tremendous marketing activities and brand name. This means Coca-Cola knows a particular quantity of items will be sold thanks to an efficient supply chain network that ensures product availability even in remote locations. Also, Coca-Cola’s target demographic includes the entire family, including children and adults. Coca-Cola should continue to be a global leader in non-alcoholic beverage supply by reflecting on internal environment activities such as marketing and distribution.
Economic and financial perspective
Assured of their Future Goals Efficient Capital Structure with Financial Flexibility As a company, they are committed to maximizing shareholder value while also maximizing long-term growth potential. Taking Advantage of the Plan – Putting Money to Work Managing Margin and Portfolio Expansion Growth and Productivity Cultures are fueled by judicious allocation of resources. Optimization of assets Dedicated to Increasing the Conversion Rate of Free Cash Flows.
Portfolio naming. To achieve Beverages for Life, they optimize our portfolio of brands. They did it to build our brand portfolio and ensure our post-crisis comeback. Their networked organization is evolving, balancing scale and intimacy. To modernize marketing and innovation, they created global category leaders. Coca-Cola manufactures items for bottling and distribution. Price and product alternatives become more versatile due to vertical linkages. Existing and new Coca-Cola products will be tested in the marketplace, Water, tea, and coffee are among the company’s many products.
Coca-Cola strategy changes
For the sake of efficiency, they will replace existing divisions and groups. As a result, there will be less duplication of effort and a faster pace of product development. Global Ventures is one of the company’s 17 business units. There will be global ventures and a bottling investment company. It’s no secret that marketers place a high value on originality, effectiveness, and cost-saving measures. After assessing global, regional, and local growth opportunities, the organization has decided to reduce its portfolio.
Workforce realignment in light of the company’s new priorities
This may lead to both voluntary and involuntary layoffs, as a result of the company’s reorganization and restructuring. There will be more information regarding this new design shortly. It will be possible for people in many nations to engage in the same effort. The number of forced separations is expected to reduce as a result of voluntary activities.
Farooq, H. B., Maldonado, M., Khan, M. H., & Sharif, H. (2021). STRATEGIC AND SYMBOLIC ADVERTISING OF COCA-COLA IN PAKISTAN: A PERSPECTIVE OF THE CULTIVATION THEORY. Медиаобразование, (2), 238-245.
Jallow, D. (2021). A Strategic Case Study on PepsiCo. Available at SSRN 3828353.
Maamoun, A. (2020). Coca-Cola Brews a Hot Acquisition: Costa Coffee. SAGE Publications: SAGE Business Cases Originals.