Sample Essay On Coca-Cola’s New Business Strategy- A Clever New Trick

Topical issue in the article

The article was published on 11th February 2016. The link to the article is
https://www.washingtonpost.com/news/wonk/wp/2016/02/11/coca-colas-clever-little-trick/
Source of articleThe article was a business news article published in The Washington Post, a U.S. publication.
The article was written by Roberto A. Ferdman.
Summary of the news item The news article documents Coca Cola’s resent announcement of its profit earnings for the year ended 2015. From the company’s financials, the company appears to be thriving in a harsh business environment where campaigns against consumption of carbonated drinks are at an all-time high. The ingenious strategy used by the company to achieve this fete involved downsizing on the can volumes used to package their beverage product.
This strategy is a deviation from that used in previous years whereby consumption of huge volumes of soda was encouraged and the beverage was hence packaged in huge cans. More public awareness on the dangers of imbibing soda has thus led to newer business strategies to combat negative publicity and public perception against the soft drink.
This strategy by the company is not only innovative, but has also helped the company to register more sales since smaller cans bring in more money per ounce. The smaller cans and bottles thus helps the company to save operating and production costs while maximizing on profits. This unique strategy also works well for consumers who take less soda since they can opt for the smaller coca cola units.

Conclusions

This news item is relevant to the course this semester since it gives novel business insights with regard to marketing and business strategy. Consequentially, the theoretical frameworks that will be taught in this course will help in understanding the various business models and survival tactics in the ever evolving consumer market, in a better way.

Reference

Ferdman, R. A. (2016, February 11). Coca-Cola’s clever new trick. Retrieved from The Washington Post: https://www.washingtonpost.com/news/wonk/wp/2016/02/11/coca- colas-clever-little-trick/