4/19/12

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Key success factors of Coca-Cola Company
Posted By mbalectures On November 24, 2010 @ 2:49 pm In Strategic Management | 3 Comments

Key success factors (KSFs) are important to future competitive success of industry players. These factors comprise resources, product attributes, competencies, market achievements and competitive capabilities etc. It is very significant for the strategists to know the background of industry in order to recognize the most significant competitive success factors. Because of alteration in driving forces and competitive circumstances, the key success factors (KSFs) of one industry diverge from other. The key success factors of Coca-Cola are given below:

Strong global presence

Coca-Cola is a carbonated soft drink sold in the vending machines, stores, restaurants in more than 200 countries. Coke’s marketing tactics and global expansion strategies led it to dominate the world soft-drink industry during the 20th century.

Licensed Bottlers

Coca-Cola’s bottling structure also permits the firm to take advantage of immeasurable growth opportunities all over the world. This approach provides Coke the opportunity to serve a greater geographic diverse area. The Coke manufactures concentrate which is afterward sold to licensed Coca-Cola bottlers all over the globe. The bottlers, who have territorially limited contracts with the Coke, manufacture finished goods in bottles and cans from concentrate in mixture with sweeteners and filtered water. The bottlers then distribute and sell Coca-Cola to vending machines and retail shops.

High utilization of fixed assets

Coca-Cola’s bottling system allows it to operate on a global scale while preserve a local approach. The bottling firms are locally operated and owned by autonomous business persons who are authorized to trade brands of the Coca-Cola Corporation. Because CocaCola does not have complete possession of its bottling system, its major basis of revenue is the sale of concentrate to its bottlers.

Advertising and differentiation

Coke mainly is competing on advertising and differentiation rather than pricing. This resulted in higher profits and disallowed a massive depression in profits. Soft drink industry needs huge amount of money to spend on advertisement and marketing. In 2000, Coke and their
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3 billion. these margins are reasonably enough for retailers to keep Coke’s products. Coke has strong network of convenience stores. Coke has different advertisement campaigns according to situation. Retail and distribution network Coke provides significant margins to retailers up to 15-20%. Coca-Cola’s brand name is recognized well right through 90 percent of the world today. preferences and tastes of the customers such as Coca-Cola Vanilla. Breadth of product line The Coca-Cola organization has occasionally launched other cola drinks beneath the Coke brand name. and have confirmed a loyalty. All rights reserved.com URL to article: http://mba-lectures. PowerAde and Minute Maid. Coca-Cola also has further well-known brands on its lists – Sprite. and restaurants etc globally. Well recognized and cherished brand name Brand recognition is the important feature affecting Coke’s competitive spot. Article printed from MBA Lectures: http://mba-lectures.html Copyright © 2011 MBA Lectures. More prominently. Product innovation capabilities The Coca-Cola Company offers different products lines according to the specific needs. Caffeine-Free Coca-Cola. Cola-Cola Zero. Its advertising has significantly exaggerated American culture and run different campaigns such as holiday and sport sponsorship etc which attracts and appeal different segment. Coca-Cola franchises in different countries offer different product lines. coffee or lime.4/19/12 MBA Lectures » Key success factors of Coca-Cola Company » Print bottler’s invested approximately $1. The main brand of the Coca-Cola Company is sold globally and is recognized as the best-known brand name in the globe. its consumers would not do without it. Evian. mba-lectures. Coca-Cola Vanilla. The most familiar of these is Diet Coke with supplementary including Diet Coke Caffeine-Free. Cola-Cola Zero.com/management/strategic-management/1117/…/print/ 2/2 .com/management/strategic-management/1117/keysuccess-factors-of-coca-cola-company. Coca-Cola Cherry and special versions with lemon. fast food fountain. food stores. vending. and Coca-Cola Cherry etc. Fanta.

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