MGT 201 Strategic Management Assessment 3 – Group Assignment Assessment type and value Type: group report. Group members: maximum three members (or individually upon the student’s request) Value: 40%...

Strategic Management Report: Coca-Cola
Table of Contents
3Executive Summary
3Introduction
4Question 1
6Question 2
8Question 3
10Question 4
12Conclusion
References……………………………………………………………………………………………………………………………………….13
Executive Summary
The strategic management is a wide concept takes into account internal and external moves made by a company in response to risks and opportunities emerging and evolving. In response to it, Coca-Cola, a giant or leader in soft drinks and beverage sector is selected for gaining insight regarding critical strategic moves of the firm. The main purpose of strategic management report of Coca-Cola is to explore the extent to which firm successfully address internal and external environment challenges by its strategies and action plans. The portfolio transformation is the ultimate vision of the company where it aspire to reach and tap new geographic markets for achieving sustained balanced growth and value gains. There are several highlights of Coca-Cola’s strategic moves which are discussed in terms of diversification strategy, offensive moves, global approach, and, CSR orientation.
Introduction
The underlying assignment aims at writing strategic management report on Coca-Cola. It is multinational beverage company headquartered in Atlanta, Georgia. The company is pioneer in the field of manufacturing, retailing and marketing of non-alcoholic based beverages, fruits drinks, juices and many more. Coca-Cola stock is listed on New York Stock Exchange (NYSE), and, S&P 500 100 indexes (Coca-Cola (KO), 2020). Since many years, Coca-Cola is positioned as world’s largest producer and recycler of plastic waste, estimation showed that around 3 million tons of plastic packaging is produced each year, which is an impressive figure. Soft drink is the main foundation of Coca-Cola from where it has built and designed several new products and brands sold worldwide. The company strive to transform its portfolio consistently for delivering strong and balanced revenue growth and value gains to its stakeholders. The soft drink growth volume is sparked by adding new product innovations, adding new packaging, marketing and flavours (Coca-Cola (KO), 2020).
Question 1
Offensive and defensive are competitive strategies adopted in lieu of surviving, sustaining and improving market position. Depending on the firm’s position, resources, expertise, and relationships with suppliers, customers and other marketing channels, a business firm decides to adopt offensive and defensive marketing strategy. Coca-Cola adopts offensive marketing strategy where it actively tries and attempts to pursue and implement changes in the industry. It invests heavily in research and development (R&D), technology advancement, and other initiatives for staying ahead of the competition.
Coca-Cola adopts offensive strategy moves in an attempt to snatch market share from its biggest competitor PepsiCo and other smaller beverage companies. This is done through consistently designing and offering new product ideas such as iced teas, fruit drinks and other similar nature products for leading niche beverage market. Given the changing consumer tastes, preferences and choice, there is no wonder in questioning that Coca-Cola and PepsiCo is getting more intense and aggressive for marketing and publicising its iced tea, sports drink and other products (Coca-Cola continues to provide more product info in more places, 2020).
As a part of offensive strategy, Coca-Cola directly targets and attacks its closest competitor for capturing high market share. Three offensive strategies used by Coca-Cola are:
1) Frontal Attack: This type of offensive strategy is used for attacking competitor by producing and offering similar nature products at the same price and quality. The reason behind using frontal attack by Coca-Cola is adequacy in terms of resources, capabilities and a clear vision of gaining market leadership. Since Coca-Cola is already enjoying a dominating position in soft drink industry, frontal attack strategy can further add or enrich this position. The introduction or launch of diet coke in an attempt to retaliate Pepsi’s introduction of diet Pepsi is an example of frontal attack strategy (Coca-Cola, 2020). The success of frontal attack strategy of Coca-Cola depended on several factors; firstly, it is having clear competitive advantage in terms of real and authenticity. In other words, Coca-Cola is perceived as market leader on account of offering real and authentic nature products; also, it has been around for a long time. The launch of diet Coke is an example that company cares about young generation health and taste aspects. This strategic move enabled Coca-Cola in winning trust and confidence of consumer in a new manner (Coca-Cola: Brands, 2020).
2) Guerrilla marketing: This offensive strategy is aimed at presenting or offering products and services in unconventional manner. The main purpose is to generate conversation, a buzz, something newsworthy and catching instant attention for gaining brand awareness. The competitive position is strengthened by word of mouth and news attention. This small hit and run-attack is pursued by Coca-Cola when it placed Coca-Cola Happiness Vending Machine in 2010 at Atlanta’s St John’s University (Forbes Agency Council, 2018). A typical coke machine was placed in the centre of the student cafeteria and hidden cameras are installed for capturing spontaneous reaction of students. Vending machine is placed for dispensing an array of products including pizzas, sunglasses, flowers and uninterrupted supply of Coca-Cola. This new form of advertising, designing and communication position it on the top of favourite list of consumers. This simple and compelling concept strongly portrays Coca-Cola among customers (How Coca-Cola is rethinking disruptive innovation to anticipate tomorrow’s sense, 2020).
3) By-pass attack: This offensive strategy aimed at bypassing competitor, targeting and attacking easier market segments, broadening its own resource base, and adding new set competencies. Pepsi adopted this strategy by launching its mineral water brand ‘Aquafina’ in the marketplace before Coca-Cola’s mineral water brand. In this strategy, Pepsi does not attempt to attack Coca-Cola directly; rather, it attempts to broaden its market share by targeting and approaching easier markets. Mineral water is an easier market segment which can be targeted through modernising existing product or invention of new technology (How Coca-Cola is rethinking disruptive innovation to anticipate tomorrow’s sense, 2020).
Question 2
In 2016-17, Coca-Cola is awarded with World Branding Awards in soft-drinks category especially in beverages sector (Ayoob, 2017). Coca-Cola is famous for diversification of its products portfolio as it consistently uses to add new and supplementary products. Soft drinks are said to be the main products of the company, and, related diversification strategy is adopted for adding value to soft drinks product portfolio. The main reason behind adopting related diversification strategy is to add value and change the look of its products. The image positioning is strengthened through changing the look, appearance and taste of the products (The Coca-Cola Company: Strategy, 2020).
There are several examples of new product launch witnessing related diversification strategy of Coca-Cola. One such example is noticed in case of...