Coca- Cola is one of most reputable Multinational Corporation that deals with beverage products. The company has gained the reputation through various business strategies ranging from the managerial to marketing strategies. Its ability to penetrate different parts of the global market by using strategic pricing and marketing approaches is one the causes of its success in business expansion (James para 2). The company uses strategic business models and efficient information systems that enable it to conduct effective market research. This has promoted the growth of its customer base, resulting in an expanded market that has significantly contributed to its growth. The distribution channels and the vibrant advertisement programs that Coca -Cola uses has placed it in the best market position in terms of the number of consumers of its product ( James para 3).
Product and market diversification are some of the techniques that significantly support the competitive advantage of companies. Coca-Cola has diversified its products by offering various brands that meet the varying customer needs. This has led to the market expansion for its products. Besides, the company has established franchises in over 200 countries to diversify the market for its products and to reach many customers. This has enabled it to stand above its major competitors such as Pepsi and to create firm customer loyalty (James para 5). The company has set a vision to sustain its competitive advantage. It has efficient management that ensures that the corporate governance is exercised efficiently. This has improved the confidence of various stakeholders enabling the company to have greater access to business capital that promote the implementation of different growth strategies. Product price is one of the key determinants of the market size for the product. Companies that offer relatively low prices for their products are able to control a large portion of the market (Thite, Adrian, and Dhara 255). Coca- Cola uses well- developed production methods that enable it to reduce production costs. As such, it offers fair selling prices and makes high profits that facilitate its global expansion.
Works Cited
James, Daly. The coca-cola business model and their competitive advantage. So Opinionated , 23 Nov. 2012. Web. 31 July 2016. <https://sopinion8ed.wordpress.com/2012/11/23/the-coca-cola-business-model-and-their-competitive-advantage/>.
Thite, Mohan, Adrian Wilkinson, and Dhara Shah. "Internationalization and HRM strategies across subsidiaries in multinational corporations from emerging economies—A conceptual framework." Journal of World Business 47.2 (2012): 251-258. Web
