Application of the Grand Strategy Selection Matrix: The Coca-Cola Company (Essay Sample)
Application of the Grand Strategy Selection Matrix: The Coca-Cola Companysource..
Grand Strategy Selection
The Coca-Cola Company is one of the largest beverage producers globally. The company is known for bottling, wholesaling and retailing soft drinks and other products operating in 200 countries (The Coca-Cola Company, 2017). Coca-cola grand strategy can be analyzed using the SWOT analysis.
Coca-Cola Company SWOT Analysis
Coca-cola strengths lie on its branding. The company is well recognized globally with its distinctive logo and colors resonate with consumers of all ages (The Coca-Cola Company, 2017). For centuries, Coca-Cola has maintained the top position with a large market share compared to its competitors (The Coca-Cola Company, 2017). Its distribution networks facilitate faster movement of products and ensure that their products are readily available to consumers (The Coca-Cola Company, 2017). The company has its distribution channels but also rely on independent bottlers, retailers, and wholesalers. Their vibrant distributions channels make the company well positioned to control costs and easily penetrate in other markets (The Coca-Cola Company, 2017).
Some of the challenges faced by Coca-Cola lack of adequate management of water; the company faces constant water problems that increase its operation costs (The Coca-Cola Company, 2017). Inconsistent foreign exchange rates affect the company earnings. Fluctuation in exchange affects it returns since the company operates in several foreign markets; they incur liabilities, reducing their revenues (The Coca-Cola Company, 2017).
Some of the opportunities the company can venture into include diversifying into other business activities based on consumer trends (The Coca-Cola Company, 2017). With the major shift toward healthier living, Coca Cola Company can take advantage of this trend to develop healthier drinks (The Coca-Cola Company, 2017). Diversification is an important factor for the company’s future to maintain its market presence since the beverage industry keeps on growing based on the consumer's diverse needs (The Coca-Cola Company, 2017).
Like other multinational corporations, Coca-Cola Company is facing threats like stiff competition from other emerging brands. Several mergers and acquisitions like Dunkin brand groups and Starbucks have greatly affected the company market shares in the past years due to increased competition (The Coca-Cola Company, 2017). Consumers with specific health preferences have reduced the number of people consuming the soft drink from Coca-cola with most people going for organic products (The Coca-Cola Company, 2017).
Application of the Grand Strategy Selection Matrix
(Krishnaswamy, 2017). .
Coca-Cola Company is in the first quadrant according to the grand strategy matrix. The company needs better strategies to remain competitive by However; it is important to note that the company needs to focus on the current market trends and develop products that can penetrate other markets. Coca-cola needs to develop strategies to increase its market growth since the company has a better competitive advantage compared to other brands in the market (Krishnaswamy, 2017).
Coca-Cola needs to utilize its numerous resources to improve its efficiency through an integrated process. The company can consider diversification as an effective approach to minimize risks within the industry (Krishnaswamy, 2017). Coca-Cola needs to explore other opportunities in other areas that would enable them to increase its
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