Competitive Advantages of Coca-Cola Industry

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Introduction
Elements that empower a company to produce the products more inexpensively than contestants
are stated as competitive advantages. Such elements enable a producer to get higher sales volume
and higher incomes than most of its contestants. Firms tend to find new techniques to outdo their
competitors and discourage other potential rivals from entering the market. This includes
lowering the prices, protecting the patent rights of the company, engaging in a monopoly
structure where new rivals find it hard to establish their companies due to the high amounts of
funds required to be at par with the existing company. This paper is going to discuss the
competitive advantages of the coca-cola company and discuss what a potential competitor can
adjust and threaten coca-cola positioning in the market.
The Competitive Advantage of Coca-Cola Company
One of the main strategies that the company uses is the ability of the company to produce their
products at a lower cost which makes the rivals not to be able to produce products at the same
rate as the company. According to Guo and Wen(2021), the company has its best pricing of their
products thus will have more customers who buy their products at a lower price. Considering its
company's considerable reputation, its items are designed to be accessible. While economic
forces including rivalry are major factors in the value proposition, some other compelling cause
is this has produced their commodities extra inexpensive and readily available. Marketing
provides the product with vast exposure to a big market share(Jones and Comfort, 2018). Their
products have a variety of packages that range from a half-liter to 2 and 2.5-liter domestic
provisions. Bigger packages result in greater benefits.
Another strategy that the coca-cola company use is the idea of maintaining loyalty in its brand.
According to Haseeb et al.(2019), the Coca-Cola company has heavily invested in the
maintenance of their products and maintaining the global characteristic of their products. The
company is also heavily investing in the innovation of its products which makes it a competitive
advantage against its competitors. Coca-Cola also has significantly gained more of its share in
terms of brand loyalty. The company has a greater level of client trust in their well-known
branded variety of products. Great prominence has made some Coca-Cola drinks varieties rise to
prominence in the soft drinks industry. Besides the company’s price approach, the company's
extensive product broad flavors have made the company attract and keep a big consumer market.
The Steadily increasing competition and digitalization have risen battle customers amongst
foodservice industries. Coca-Cola itself and competitors use strategies to interact with customers
views that foster devotion, such as branding, a varied product line, cheaper price, and beautiful
packing, and also innovation(Jones and Comfort, 2018). Clients can simply swap flavors due to
the ease with which they can do so.
Investing in human capital forms the basis of the company's success and higher sales volume in
the past years making it an advantage in the way other companies deal with their human resource
management. According to Jones and Comfort(2016), the company has invested in techniques to
improve employee satisfaction in their working environments. Coca-Cola has also gained an
edge over its competitors by concentrating on its human resource strategy. It has concentrated on
performance management as well as training for job satisfaction and professional growth, in
addition to better compensation and non-monetary rewards. Coca-Cola places a high priority on
career growth, and as a result, this has created several boot camps designed to assist their
employees to feel comfortable. The organization has handled employee productivity,
development, and incentive utilizing digitalization and advanced analytical approaches(Jones and
Comfort, 2018). Annually, a huge proportion of young prospective candidates are attracted by
the attractive packing of the brands and an awesome work atmosphere which provides prospects
for a promising future.
What Competitor Can Do To Threaten Position Of Cocacola Company
One of the competitive advantages realized by the company is its great investments in its
advertising sector as a form of marketing strategy. According to Maury(2018), Coca-Cola
already has an effective advertising department, which has helped the company stay ahead of the
curve by developing a solid reputation. The corporation spent nearly $4 billion on advertisements
in 2017. Pepsi, its major competitor, invests the same amount in marketing annually. Pepsi can
adopt better methods of advertising their products so that they can be better than the Coca-Cola
company. When the company researches the best advertising strategies, it results in better sales
and increases more customer loyalty(Michałowska, Danielak, and Stankiewicz, 2016). This will
threaten the positioning of the existing company.
A competitor can opt to increase its training of their employees that may result in the company
having better and high-quality products. According to Michałowska, Danielak, and
Stankiewicz(2016), the Coca-Cola company invests heavily in training its employees thus
creating more chances for the workers to be advanced in the productivity of the company. Taking
a rival company like Pepsi, it can use better tools of training their workers to motivate and
increase their competence. This will lead to the growth of a skilled environment which will
contribute to increased sales volumes and earn more customers threatening the Coca-cola
positioning(Ling, 2017). When the company has better and advanced employees than an existing
company, it will earn a larger market share.
One of the best ways that a competitor should consider implementing when to threaten the
positioning of a coca-cola company is the use of digitalized mechanisms in the production of
their products. According to Ramraika and Trivedi(2016), Coca-Cola company has employed
many people that work in industries across the globe. This can have more human errors like in
the transportation of their product which has been witnessed in many countries. Potential
competitors can adopt digitalized trucks that have a lesser rate of causing accidents since their
progress and voyage can be monitored by the management. This will threaten the currently used
technology by Coca-cola companies in terms of transportation and availability of their products.
By reducing other production costs by the use of modern methods will make the company reduce
the price of their products and make them more affordable to their customers thus increasing
their sales volume(Safarova, 2020). This element will have the company be able to reach a larger
market.
Coca-Cola has the greatest number of customers. Better sales, as well as income, are associated
with a wider market share. This translates to improved revenue growth. According to
Temnyshov and Belyaev (2020), a competitor should seek the best way to beat up and cut a share
of the existing company. For example, Pepsi the major competitor should seek the best methods
to ensure they increase their customer base. This may include setting shops and opening
restaurants with more subsidized priced products. When the company sets up open fields that
will attract more customers and create an opportunity for them to have exposure to their
products. This will attract more customer increasing their sales(Goodluck, 2020. ). This will
make a huge improvement on their positioning in the world market.
Conclusion
Competitive advantages cost-effectively make a company produce products and this scares away
competitors from threatening their market share. Cocacola use tactics like strategized pricing,
training of employees to improve their output, and investing heavily in advertisements thus
maintaining its large market share than its competitor forming bases of their competitive
advantages. Competitors can advance on different sectors like HR to be able to have a larger
marketing share than coca-cola which will threaten their positioning in the global market.
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