Introduction

In the competitive world of the current days, the successful organizations

will include three main characteristics in common, adding to that, the
portfolio analysis going to have a vital role to play in assisting
organizations to achieve them. Those characteristics will innovate as a
way of life. Moreover, they will achieve leadership in associated niche
markets. Finally, they will compete on the value in meeting the member's
needs, not just on price. The aim of every business is to develop and
grow, be it a start-up that’s just close to its first deal or an established
market leader looking for further increase profitability. But how does a
business decide what is the best strategy or method to reach their
targeted aim of development and growth? The EG Matrix management
tool provides an answer and a solution to this question by enhancing the
level of risk – considering whether to look for growth in existing or new
products in existing or in new markets. To clarify the robustness and
legitimacy of EG Matrix, it has been used in Coca-Cola, the most well-
known trade name in the world and a company today operating in more
than 200 countries; and a brand that has undertaken unremarkable growth
strategies in its one hundred year of history. The GE Matrix is a method
of listing a number of different factors to facilitate in the understanding of
the markets. It is significantly useful for concurrently examining multiple
markets or a portfolio of products. Specific strategies for a company are
implied by where their businesses fall on the matrix. Therefore, this
report choice Coca Cola company as an ideal in the competitive market to
be analyzed for its sustenance and to show the portfolio analysis and
suggest a portfolio strategy for it using the GE Multifactor portfolio
analysis based on explaining the industry attractiveness, business strength
and the GE matrix.

About Coca-Cola

The Coca-Cola company is the world’s leading and best known drinks
supplier. The company mission statement is: “The Coca-Cola Company
exists to benefit and refresh everyone who is touched by our business.”
The company has a portfolio of products, these are at different levels in
the product life cycle. The aim and objective of Coca-Cola is to make
sure that the product range provides something for every occasion. Coca
Cola company offers more than three thousands products in over two
hundred countries. From this products, energy drinks, juices/ juice drinks,
soft drinks, sports drinks, tea and coffee, water and others.

Business Strengths and Industry Attractiveness

The current study will

cover the business
portfolio management for
the chosen company
which is Coca Cola
showing the way of how
the company is presiding
the strategy of
management to be a
strong competent in
today's competitive
market. The business
strength of Coca Cola
company is shown with
an explanation using the
industry and market attractiveness which shows the percent of the market
attractiveness as strengths in the market.

the biggest and first strength of Coca-Cola is that it has established itself
as a single large company with 10 plants in all major cities running
directly under supervision of Coca-Cola international unlike other
beverages. Second, there is no conflict of decisions and policy; one
decision taken is implemented effectively and immediately in all plants
all over Pakistan without argument. Therefore, you will find the same
prices, same quality and the same schemes in all cities. Third, working
style is highly professional, and discipline is maintained. Fourth, another
major strength of Coca Cola is its intellectual brain power of highly
professional qualified and dedicated employees who put in all their
efforts to satisfy their customers by providing the ultimate best of Coke.
Fifth, another strength of the company is the proper time of delivery of
Coke to retailers, shopkeeper’s etc punctuality is maintained which gives
Coke an edge over all its competitors Brand Name, Symbol, and Bottle
Shape. Sixth, the shape of Coca Cola bottle is son unique and stylish to
the point that even if the name is rubbed off; people will still easily
identify that its Coca Cola bottle and the same case with its symbol and
name which are so well known and cannot be imitated. Seventh, Coca-
Cola Company management never compromise on quality even if they
have to spend a little extra in production. Eighth, Quality in taste as well
as bottle and caps and gifts which are offered doesn’t vary from city to
city but is same throughout the company. Ninth , Coke Classic is one
product, which the Coca Cola company can never think of stop producing
because it is the one which make the coke company a huge success, it
was one product which gives billions of dollars as revenue from world
over. Whenever the company thinks of launching its product in a country
the first product they launch is coke classic as they know that if don’t
work here then nothing else can. (Shahid, 2011)

Another strength and attractiveness of Coca Cola company is the

management and marketing styles it uses. Here are some examples..

Market Penetration: (EXISTING Market, EXISTING Product)

This strategy has an attempt to raise the market share in the existing
industries, either by selling more products to get much more customers or
by finding other new customers within these markets – basically by
adapting the ‘Promotion’ tool of the Marketing Mix. Due to the
magnificent strength of Coca-Cola’s brand, the company has been able to
utilize market penetration on an annual basis by creating a link between
Coca-Cola and Christmas, such as through the infamous Coca-Cola
Christmas advert, which has facilitate boost sales during the festive
period. (2015, Tom Oakley)

Product Development: (EXISTING Market, NEW Product)

This involves progressing new products for the existing markets by

having a look about how new products can meet customer needs more
closely and outperform competitors. A main example of this was the
launch of Cherry Coke in 1985 – Coca-Cola’s first extension going
beyond its original recipe – and a strategy encouraged by small-scale
competitors who had selected a profitable opportunity to add cherry-
flavoured syrup to Coca-Cola and sell it again. The company has since
that, has carried on to successfully launch other flavored variants
including lime, lemon and vanilla. (2015, Tom Oakley)

Market Development: (NEW Market, EXISTING Product)

Thirdly, the market development strategy enhance finding a new group of

costumers for an existing product. The launch of Coke Zero in 2005 was
a fine example of this – its concept being identical to Diet Coke; the great
taste of Coca-Cola but low calories and with zero sugar. Diet Coke was
launched more than 30 years ago, and whilst more females drink it mostly
daily than any other soft drink brand, it came to notice that young men
stayed away from it due to its consequential perception of being a
woman’s drink. Having its shiny black can and polar opposite advertising
campaigns, Coke Zero has successfully gained a more ‘masculine’
appeal. (2015, Tom Oakley)

Related Diversification: (NEW Market, NEW Product)

This includes the production of a new list of goods that complements the
existing portfolio, in order to penetrate a new but similar market. In 2007,
Coca-Cola spent over $4.1 billion to acquire Glaceau, including its
healthy drink brand Vitaminwater. The brand anticipates the drinks
market heading less-sugary future – so has jumped on board the growing
health drink sector because of the decline in sales of carbonated soft
drinks like Coca-Cola over years. (2015, Tom Oakley)
Unrelated Diversification: (NEW Market, NEW Product)

Ultimately , unrelated diversification involves entry into a new industry

that lacks important similarities with the company’s existing markets.
Coca-Cola generally avoids risky adventures throgh unknown territories
and can instead use its brand strength to continue growing in the drinks
industry. That said, Coca-Cola offers official merchandise from pens and
glasses to fridges, therefore exploiting its strong brand advocacy by this
strategy. (2015, Tom Oakley)

Market Attractiveness (GE Matrix)

Several variables determine the market attractiveness for a service,

product, and brand. They include:

• Pricing trends
• Industry risk of return
• Market Segmentation
• Distribution network
• Market fertility or profitability
• Market volume
• Market augmentation or growth
• Rivalry or competitive strength
• For Coca Cola company, the first step to identify the factors is to set a
list of factors which help the country to determine the industry
attractiveness. There are actually some preferred factors in the
industries but Coca Cola company should take advantage of the most
appropriate factors for the business such as using a various business
strength areas.
• Assigning Weights and Rating: The second important element is to
give priority and effort to the most important areas which are going to
benefit the business.
• Calculate Final Scores – a total score can be drawn and achieved by
multiplying the rate and weight of each factor.

Conclusion:

In sum, this report gave an analysis of Coca-Cola company. Highlighting

the strengths and attractiveness of the company using the EG matrix
strategy. It has been noticed that the company's emphasis on market
penetration and other non-diversification strategies, therefore, it has been
assumed that Coca-Cola is a relatively risk-averse company comparing
with other companies.
References

Shahid, A. (2011). Coca Cola marketing project (YouTube). Available

from http://www.slideshare.net/almas_sshahid/cocacolamarktingproject

Oakley, T. (2015). Coca-Cola: Ansoff Matrix. The Marketing Agenda. Retrieved form
https://themarketingagenda.com/2015/03/28/coca-cola-ansoff-matrix/