Strategic Plan Part 3

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The Coca Cola Company

Importance of Innovation in the Coca Cola Company

The selected company is the Coca Cola Company. Generally, the world is changing rapidly and for the coca cola company to continue thriving over the coming years as a successful business, it needs to look ahead, understand clearly the forces and trends that are likely to shape and maintain its business success. Coca cola is a company that deals with production of soft carbonated drinks, beverages and refreshments (Patricia 2014).

The company has got three missions; to make the world refreshed, to inspire happy moments and to make a difference by creating values. The company’s visions includes; inspiring people to be the best they can by ensuring that the company is a good place to work in, producing quality beverage brands that satisfies people’s needs and desires in the world, creating mutual and enduring values by nurturing winning of suppliers and customers, building and supporting sustainable communities and the societies, maximizing profits while being mindful of their responsibilities and finally, be a fast-moving and highly effective organization. The company’s values are; passion, leadership, cooperation, integrity, diversity, quality and finally accountability. The winning culture of the coca cola company defines their behavior and attitude that the company will require to make their 2020 vision a reality.

Innovation is the source of everything in the coca cola company and it is the strongest force that is behind the production of energy drinks, sport drinks, juices, waters and beverages by the company. Innovation motivates the company’s workers to pack their products in environmental friendly packs. The refrigeration equipments help in quenching their customer’s thirst and hence contributing to their success. There are different kinds of innovation in the coca cola company and they include; package innovation, bottling innovation and vending innovation to mention a few.

The unique coke bottle which was contour shaped was the first innovative idea. This was done in order to make the company different from its competitors. The contour bottle which is made of glass was designed in order to improve impact resistant, cost and reduce weight. The glass bottle is ten percent less expensive and that innovation helps the coca cola company to achieve its mission of maximizing profits (Rosemary 2005).

There is also the bottling innovation. Coca Cola Company’s bottling system is among the company’s major strengths. The bottling system allows the company to carry out business in international scale and also maintain its local approach and customers. The bottling partners of the coca cola company are local businesses and they have a very strong influence in the development of the economy and also they participate actively in community life and that makes the coca cola company to fulfill the company’s vision of creating mutual and enduring values by nurturing the winning of suppliers and customers, building and supporting sustainable communities. Lastly, there is the vending innovation. The introduction of automated refrigerators vending machines with metal coolers is climate friendly and also reduces the carbon dioxide emissions. The metal cooler uses CO2 refrigeration system And HFC free insulation foam. These two properties reduce emission of green house gas. This helps in achieving the company’s mission of inspiring people to be the best they can by ensuring that the company is a good place to work in and that the company’s environment is safe and clean.

Business Model in the New Division

I suggest that the coca cola company should create a new division which will be dealing with products that favors people with chronic and other diseases. An example of this product is an energy drink which has less or no sugar at all, not carbonated and has a lot of nutrients for instance, a pure blended juice. The business model for this division will include its production, marketing and sales. The Coca Cola Company will not have many expenses on producing this new product since it will use refrigerating equipments and blenders of the other drinks produced by the company. New skills will not be necessary since the concept of producing this blend juice is just like the other drinks.

The major expense that may arise in production of this new product is high cost of different fruits. This is because the product will be rich in pure fruits. This product will be delivered to the customers just like other products produced by the company. There should also be good connections between distributors, retailers, wholesalers and customers. The innovative mission statement of this new product is refreshing the whole world by producing products that favors every individual and ensuring there is maximization of profits. The division is customer focused because it is targeting people with chronic and other diseases. It is also customer focused because it produces products that are not produces by other companies and that will favor their customers.

Differentiation of the New Product

This new product can be differentiated in terms of its packaging, price, product innovation, market niches and lastly, offering best services. The company should innovate this new product by adding some features and functions to the product for example; the company can add the function of maintaining healthy conditions and also add natural nutrients to the new product and that will make the product different from other products produced by other companies and that will give the company competitive advantage to the market. Packaging of the new product is also another way of differentiating the product from other products. The company is known for its attractive bottles and also containers. Therefore, in this kind of product, the company should pack the product in attractive bottlers and tumblers that clearly indicate the functions, ingredients and the purpose of the juice. This is a very effective way of differentiating a product since it can either attract the customer or send away that customer. Another way of differentiating this new product is by creating a market niche in areas where there is no such kinds of products.

This new division addresses customer’s needs in the following ways; it maintains their health, it is recommended for people with chronic diseases and other diseases and it does not affect or add problems to those who are sick. This will therefore give the product its competitive advantage and make customers buy that product instead of other related products.

Vision and Competitive Advantage of the New Product

As much as it is difficult to maintain a competitive advantage, the competitive advantage of this new product can be sustained. Competitive advantages of this product will become sustainable when the competitors efforts to render the same services cease. Generally, the coca cola company is an example of a company which has sustained its competitive advantage, extensive business model and innovation and therefore, it will not be difficult for the company to sustain its competitive advantage for this new product.

As discussed above, the business model for this new division will entail the production, marketing and sales of the new product. The Coca Cola Company will not have many expenses on producing this new product since it will use refrigerating equipments and blenders of other drinks. New skills will not be necessary since the concept of producing this blend juice is just like the other drinks. The major expense that may arise in production of this new product is high cost of different fruits. This is because the product will be rich in pure fruits. This product will be delivered to the customers just like other products produced by the company. There should also be good connections between distributors, retailers, wholesalers and customers. The main vision of this new product is ensuring that people of the community and the vast world remain healthy and refreshed. Other visions are; ensure the satisfaction of patients needs and desires and lastly there is a vision of nurturing customers’ trust. These visions are aligned with the company’s general visions in the following ways; both the two have the visions of satisfying customer’s needs, nurturing customers trust and lastly, supporting communities. The new division aligns with the company’s mission and values in a number of ways. They both have the mission of making the world refreshed, inspiring happy moments in the world and also making a difference by creating values that favors their customers.

In conclusion, the new product will fit into the Coca Cola Company since it aligns with the company’s mission statement, vision statements and also the values of the company. This product will greatly serve people of the community and the world and will also bring profits into the company.

References

Patricia W. (2014). The Coca Cola Company: Decades of Great Performance. Retrieved from DailyFinance.com

Rosemary S. (2005). The Coca Cola Company at a Glance: The Vault. Retrieved September 2016