I am trying to develop an understanding of Coca-Cola and Porter's Generic strategies and how they are using them. I have completed the SWOT on Coca-Cola, however I am failing to understand how to combine Porter's Generic strategies with the SWOT with their corporate strategy and how the changes based of the generic strategies would affect the company's mission, vision, and goals/objectives. I have attached to SWOT I have built.© BrainMass Inc. brainmass.com March 22, 2019, 3:19 am ad1c9bdddf
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//Coca-Cola is a carbonated soft drinks company, which markets its product on a global basis. In order to compete with its competitor, the company develops certain strategies and tactics. In the following context, we shall come across the SWOT analysis and Porter's generic strategy of Coca-Cola.//
Porter's Generic Strategy of Coca-Cola
Michael Porter has developed the three generic strategies, namely cost leadership, focus strategy, and differentiation strategy (Kossowski, 2007).
Through the differentiation strategy, the company tries to position its product in the manner that it stands out to be different from the products of the same category (Porter, 2008). Coca-Cola is the oldest carbonated soft drinks company, and since then, it has been using differentiation strategy to make its products stand out of the crowd. The company spends about 20% of its budget on advertisement so that it could maintain a differentiation strategy. Another differentiation factor that the company uses is its logo as it helps to differentiate its existence from its competitors. The logo was founded in 1923 and since then, it has not been changed. This has helped in establishing a unique image of the brand in the mind of the customers (Feloni, 2013).
The company uses a unique blend of advertisement and marketing strategy, which helps it to be a leader among the different soft drinks companies. One of the strategies used by the company is that it goes along with the mindset of people that they feel slimmer if the bottle is also shaped in a curvy manner, therefore, the packaging of the drink is done in different shapes of bottle. Another differentiation strategy that the company uses is Coca-Cola Freestyle machine in which the customers can match and add different flavors to their beverage. It also uses soft spell approach to creating the differentiation.
Through cost leadership strategy, the company tries to position its product cheaper than its competitor and for this the company tries to minimize the cost of production (Eldring, 2009). To make this happen, the company manages its cost in an efficient manner. It administers its operating expenses and manages the flow of cash in the organization. The investments are made in those areas, which seems profitable to the organization. The company also makes production on a large scale so that the operating cost is low, and the customers also benefit from this. It becomes a win-win situation for both, customers, and the company. Another winning factor of Coca-Cola is that it doesn't change its price as soon as it gains popularity. It static price factor, for several years, has helped the company be a cost leadership.
Coca-Cola's focus strategy is based upon creating the cost, as well as differentiation focus.
Focus strategy is based on serving niche marketing, where it serves a particular segment of customers and cater to their needs and preferences (Partridge & Hunt, 2005).
By focusing on the development of its design, size, and taste so that it could match the requirements of the customers, is the differentiation focus of the company. Through this strategy, it focuses on changing the packaging, ...
The solution addresses the query is posted in 1888 words with APA References.