ASSIGNMENT

The encroachment into the newer markets including the manufacturing of mineral water and even introduction of coffee is a clear indication that this company has widely expanded its market portfolio and with no doubt, the company has embraced and well-designed competing strategy in order to outdo its competitors who are increasing in the industry at large (Faria, Barros, & Sauerbronn, 2017). The market is always fragile and it requires continues evaluation of the effectiveness of different corporate strategies used since blind employment of any strategy will adversely affect the business. Any strategy can either affect corporation positively or negatively hence the choice of the strategy will at a greater extent determine if the corporation will match the competitors or not.

Company Competition

The most significance competitor for Coca-Cola is Pepsi. The two corporations produce or manufacture beverages regardless of the company’s intensive investment has not been able to match Coca-Cola in many global markets. The case here is that the Pepsi has not been able to employ the most effective corporate level strategy in order to match with its competitor. The product of Pepsi is generally cheaper as compared to Coca-Cola and this shows that the company has employed the cost leadership strategy (Allen, 2015). But this strategy has not been effective as the diversification strategy employed by Coca-Cola hence the revenue has remained low and the market share is still minimal. It is evident that every corporation has a strategy that works for but sometimes these strategies work at certain stages but they do not work at all levels of the corporation. When it does not work to the favor of the corporation it means that the corporation will be disadvantaged over the competitor when a strategy fails to favor a corporation. Effective measures are supposed to be taken to save the corporation from collapsing.

The two rivalry corporations mentioned above have employed different strategies at different stages of growth levels. Some strategies have worked to the favor of one company while other strategies have not been effective as intended by Coca-Cola or Pepsi, Coca-Cola being a well-established company has also employed the cost leadership strategy (Kayabaº, Boyraz, & Derdiyok, 2017). This is due to its heavy investment and large market share this strategy has worked effectively for the company since the company has been able to produce its product at relatively low prices in other markets Pepsi has also been able to employ this strategy since their product has been also been priced relatively low but the strategy hasn’t been effective as the rivalry company Coca-Cola . this Situation is because the company has a low market share and it has not been able to match its rivalry company.

Diversification is also one of the strategies that corporations employ to survive the market. There are levels of diversification strategy and at each level, the corporation is affected either positively or negatively, at the low level the corporation will adopt either a single-or a dominant-business strategy (Kayabaº, Boyraz, & Derdiyok, 2017). A single business strategy is introduced while operating in relatively few products while with dominant gets almost 90% of its revenue to a single product or production area. Coca-Cola adopted the dominant strategy while Pepsi has adopted a single strategy (Allen, 2015). This difference is because Coca-Cola has over concentrated on beverages while Pepsi has concentrated on several products in the market. At the moderate and high level of diversification, the corporation raises more than 30% of its revenue from the non-dominant business this is disadvantageous because most resources are invested where it does not generate revenue.

It has been observed and proved that for the corporation to succeed the strategy employed in its operation is the key and it will determine whether the corporation will survive the market or not. Change of strategy is quite good because some strategy will work for other cooperation while it does not work with other companies. It evident that the two corporations the two corporations use different strategies to meet the demands in the market It is identified that Coca-Cola Choice has always involved diversifications of its products in different markets and as well as differentiating the products from its competitors (Kayabaº, Boyraz, & Derdiyok, 2017). There are other unmentioned generic strategies which include low cots leadership and focus that has not been well expressed but the choice is that Coca-Cola Company takes the lead in the marketing by using the two named strategies.

Market Cycles

In a slow cycle market, Coca-Cola current operations may work better. This is due to the company's focus on shielding its products from imitation y increasing ensuring that there is a complete differentiation of the products from the competitors' products. Equally, imitations might be costly following the situations identified with the industry and the financial capabilities of the company competitors. This condition offers the company a sustainable advantage over other companies in the industry. Considerably, in a slow cycle market, the identified company strategies many have challenges considering that other companies will have the ability to produce similar products. In this case, differentiation will in return become costly and taking a single positioning in the market will be difficult. The company will have an unsustainable competitive advantage. Ultimately, in the fast-cycle market, reverse technology gives competitors a better ability to build quality products and improve their process due to the gained knowledge from the technology. This condition identifies the company to have little chances in meeting the desires of its customer and thus competitors will always take the say of the day in the market.

References

Allen, F. (2015). Secret Formula: The Inside Story of How Coca-Cola Became the Best-Known Brand in the World. Open Road Media.