The purpose of this essay is to discuss how Coca-Cola generates a sustainable competitive advantage by tapping into its resources and capabilities within the company. I will discuss the theoretical area, draw on secondary research, and apply a “real world” example. The definitions of each perspective are explained to clarify the understanding of different types of organizations. The Coca-Cola Company (Coca-Cola), founded in 1886 and headquartered in Atlanta, Georgia, is the world's leading soft drink manufacturer operating in more than 200 countries and producing 400 brands of soft drinks. Coca-Cola is very successful and recognized throughout the world, making the company the most valuable brand internationally. Coca-Cola operates through eight segments, namely Africa, the East, South Asia and the Pacific, the European Union, Latin America, North America, North Asia, Eurasia and the Middle East (The Coca-Cola Company, 2006). Coca-Cola's activities extend across all sectors of the soft drinks industry. The company offers ready-to-drink and non-alcoholic beverages with carbonation such as carbonated water, flavored water and energy drinks. There are still beverages that include soft drinks and non-carbonated drinks that include still water, flavored water, teas, juices and enriched water. The company also offers syrups, concentrates and syrups, which include sweeteners and ingredients. The company sells its finished beverage products to distributors, canning and bottling operators, fountain wholesalers and distributors. (182)Strategy is about matching a company's resources and capabilities with opportunities... from paper... to materials in finished products. The company produces the syrups and sells them to partner bottling companies who package and distribute the final product. Bottlers help sell and promote Coca-Cola brands to businesses and institutions. Furthermore, the Outbound Logistics department excels in the task of effective shipping processes in providing fast delivery, reducing damage, efficient finished product storage processes, shipping goods in large batches to minimize transportation costs and quality material handling equipment to increase order picking. Finally, Coca-Cola's marketing and sales department has a highly motivated and capable sales force, innovative promotion and advertising tactics, selection of the most suitable distribution channels, accurate identification of customer segments and needs, and effective pricing strategies.. (171)
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