D4: This course

Tia McSwain

Generic Strategies

Coca-Cola and Porter’s generic strategy

The Coca Cola Company is a giant beverage company that has its products retailing in most parts of the world if not the whole world (Rahman, & Areni, 2014). In order to survive in the competitive industry it operates in as well as top the industry, the company has had to employ a generic strategy. In reference to chapter 7 and in reference to porter’s generic strategies, the company has employed the use of the cost leadership strategy and the strategy has proven to be quite useful.

The strategy has helped Coca-Cola to gain popularity as well as increase its market share. Considering that the primary target market of the company is middle class, the company has had to ensure that its products are relatively cheap as compared to its competitors as well as have unique tastes. In order to ensure the effectiveness of its generic strategy, Coca-Cola has as well employed an intensive strategy that is centered on market development and penetration as well as product development.

Coca-Cola and the Miles and Snow’s typology

In reference to Miles and Snow’s typology, the Coca-Cola Company can be classified as an analyzer. The company has perfectly blended being a prospector and a defender perfectly; the company can easily produce new products as well as defend the market for the products that they already offer. The Coca-Cola company’s product portfolio has grown over the years and continues growing and this is evidenced by the over 500 sparking brands it offers as well as the over 3500 beverage choices it offers (Gong, 2015). The company is famous for its Coca Cola, Fanta and sprite brands that it has been offering for over half a century. The company has been defending its market for quite some time and continues doing so up to date. In reference to chapter 8, the company has had to employ various promotional strategies to ensure it holds its position in the beverages industry. Some of the most known promotional strategies of the company include; having common people names on their Coca-Cola drinks and the Christmas promotion by the Coca-Cola drink.

Similarities and differences between the Mile and Snow’s and Porter’s generic strategy typologies

There is one main similarity between the two typologies. The similarity is that they are both based on two concepts; the concepts of strategic equifinality and success through managerial strategies (Parnell, 2016). On the other hand, there are several differences between the two typologies. This paper will focus on the three top differences. The first main difference is on the nature of the typologies; Mile and Snow’s typology is specific in nature whereas Porter’s typology is more generic or is not specific. The second main difference is in the center of focus of the typologies; Porter’s typology focuses on economic factors whereas Miles and Snow’s typology is centered on a firm and the environment that the firm exists and operates in (Parnell, 2014).

References

Gong, Y. (2015). Global operations strategy. Springer.

Parnell, J. (2014). Functional strategies. In Strategic management (pp. 218-245). 55 City Road, London: SAGE Publications, Ltd DOI: 10.4135/9781506374598.n8

Parnell, J. A. (2016). A business strategy typology for the new economy: reconceptualization and synthesis. Journal of Behavioral and Applied Management, 3(3), 1052.

Rahman, K., & Areni, C. S. (2014). Generic, genuine, or completely new? Branding strategies to leverage new products. Journal of Strategic Marketing, 22(1), 3-15.