contributions to charity provide greater opportunity to make it better known to the public, and earn more returns.
Threats - Its major competitor Pepsi also has more and more consumers, and there are new products of the same kind every year, which threatens
Coca-Cola greatly. On the other hand, consumers think carbonated drinks like Coca-Cola are easy to cause fat, they wanted to be more healthy.
Competitive Profile Matrix
As shown in exhibit 6, Coca-Cola's major competitor is Pepsi.
The top critical success factors used included product quality, market share, consumer loyalty, and sales distribution. Coca-Cola scored the higher in its industry with an overall score of 2.75, with the higher market share and sales distribution. And the PepsiCo with an overall score of 2.5, and its major contributors programming financial position and quality.
Strategy Decision
Because of its strong leadership position, the coca-cola can continue to
leverage its existing brand to leverage across a number of product lines and distribution channels. The SPACE Matrix indicates that coca-cola should pursue aggressive strategies. The BCG matrix indicates coca-cola's
leadership position in its major segments. The QSPM indicates that coca-cola can continue to increase market share and improve operating margins.
Strategic Planning and Action Evaluation (SPACE) Matrix
As shown in exhibit 9, coca-cola company, whose financial strength is a dominating factor in the industry, but its competitive advantages is not so obvious. Generally say it’s a growing and stable industry.
Action Evaluation: Coca-Cola price strategy is very realistic, now people like \season impact on sales. The company turns3 A (availability, affordability, acceptability) into today's 3 P (pervasiveness, price, preference), expand the company's market and to improve sales.
Boston Consulting Group (BCG) Matrix
As shown in exhibit 10, most of Coca-Cola Company’s products belong to Cash cows, those products have a high relative market share position but compete in a low-growth, and they are yesterday’s stars. They should be
managed to maintain their strong position for as long as possible. Product development or diversification may be attractive strategies for them.
Internal – External (IE) Matrix
Just like the BCG Matrix, the IE matrix shown in exhibit 11 indicates the four kind products of Coca-Cola Company, Coke and Sprite can be described as grow and build, intensive or integrative strategies can be most appropriate for them. Diet Coke and Fanta can best managed with hold and maintain
strategies, market penetration and product development are two commonly strategies for them.
SWOT Matrix
As shown in exhibit 8, five key strategies were chosen by the SWOT Matrix for use in the QSPM. For the Strength-Opportunity Strategies, Coca-Cola should continue developing new products and resort services to contribute to the company's long-term growth. For the Strength-Threat strategies Coca-Cola needs to innovate a new product which is more health to our body. For the Weaknesses-Opportunities strategies, Coca-Cola can do more contributions to charity organizations instead of use of celebrity advertising. For
Weaknesses-Threat strategies, Coca-Cola needs to Think more about win win situation, hiring more high-quality employees, and they will not fear of the high rate of unemployment, but also can solve the company big and hard to management problem.
Quantitative Strategic Planning Matrix (QSPM)
As shown in the Exhibit 12, Coca-cola has two alternative strategies-- The company layer strategy, and Business layer strategy. Sum the total
attractiveness scores of 3.6 versus 4.1that indicates the business should strive to its Business layer strategy.
Conclusion
While Coca-Cola competes with many companies across a variety of industries, there is no other entertainment company that serves as many markets as Coca-Cola. Such breadth of product offerings coupled with
arguably the strongest brand in the industry gives Coca-Cola the opportunity to shape the future of the industries that it operates. It is this ability to create synergies across its revenue segments that should be the focus of any future strategic decisions.
Exhibit 1 – Income Statement
Exhibit 2 – Balance Sheet