Essay Sample on Strategy: Coca Cola Company

Published: 2023-01-26
Essay Sample on Strategy: Coca Cola Company
Type of paper:  Essay
Categories:  Branding Coca-Cola Strategic marketing Business strategy Leadership style
Pages: 6
Wordcount: 1382 words
12 min read

A strategy is a fundamental model in the operation of a firm irrespective of the size as well as the amount of capital 'splashed.' An organization that has a good strategic position itself to achieve the targeted goals and objectives which are instrumental to its mission and vision. A good strategy has multiple options of coordinating all the efforts geared toward solving various problems. Therefore, leaders are the pillars of crafting the right strategies through key decision models. In this essay, I will use Coca-Cola to address how the firm sets direction with an approach, strategic thinking, decision model, and its effects.

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Process: Setting the Company's Direction with Strategy

Coca-Cola has tapped on the differentiation strategy, a marketing technique that manufacturers use to build on a strong identity within a specific market. Banutu-Gomez (2012) argues that a marketer introduces different varieties that contain the same product, but under a similar name with a particular category that covers a matching range of products. There are two strategies that Coca-Cola uses, and they include; branding and also cost leadership.

A brand is a name, symbol, sign, design term, or a combination of all the above concepts to identify and distinguish goods and services produced by one seller from others. The primary intents of successful branding are; accurate delivery of messages, confirming an organization's credibility, linking the target prospects emotionally, inspiring the buyer as well as establishing user loyalty (Banutu-Gomez, 2012). Coca-Cola focuses on producing and supplying regular soda, diet, and decaffeinated soda using the same brand name. Each type of drink has a different market segment.

Cost leadership is also another planning process that Coca-Cola uses to achieve its goal of becoming one of the most affordable companies in the market. The market segments center on minimizing the cost by ensuring the selling price equals the market's average value. Banutu-Gomez (2012) states that in the US, Coca-Cola has positioned itself as an icon among Americans who view it as friendly, loyal, traditional, and American. For instance, the firm's advertising slogan states that; "Always Coca-Cola," which creates a feeling of the company being around forever, maintaining its loyalty, and differentiating itself from other brands. The firm faces stiff competition from Pepsi, and latter is one of the top firms in America but uses defensive strategies to retain current consumers as well as to preserve purchasing frequency.

Strategic Thinking: Discussion of a Key Advantage or Disadvantage from Rumelt, Why

Rumelt (2012) highlights two significant advantages that a company can tap into to ensure it dominates in the market through strategic thinking. To start with, leaders have the power and the responsibility of identifying the company's strengths and weaknesses and also carrying out a similar analysis of the rival organizations. This notion is fundamental to a firm to ensure it taps on the advantageous side and minimizes the weak link. For instance, producing lower-cost products as compared to rival firms is one approach that can create an added advantage. Additionally, one can also deliver more products as compared to the competitor to reach out to more clients, sell more, and make maximum profit and revenue just like Coca-Cola.

In any industry such as food and beverages, motor, electronics, or furniture, there are dynamics that sweep across. They call for strategic thinking. Leaders are tasked to monitor the situation to identify the dynamics expeditiously (Banutu-Gomez, 2012). For example, technological innovation across the industry calls for the adoption of gadgets to aid in the prompt delivery of raw materials, manufacturing, packing, transporting, and delivering processes. The other wave of change that is exogenous are; cost, politics, buyer perception, and competition. Focusing on such situations ensures such factors work for a company and differentiate a great manager from the rest and also separates successful firms from average organizations.

Decision Making

As a manager of Coca-Cola, it is my duty and responsibility to ensure that I propel the organization in the right direction. I will focus on the OODA Loop model. Von Clausewitz (2012) elaborates on OODA Loop to mean; Observer, Orient, Decide and Act which are critical in key decisions made. The model was designed by John Boyd and focuses on vital observations of all the operations of a company like Coca Cola then orients with all the information by identifying weaknesses, and strengths, and comparing with the competitors to make wise decisions. The OODA Loop model allows an individual to make a personal orientation to come up with a relevant verdict. Coca-Cola's main competitor is Pepsi, and both organizations have clients complaining about sugary beverages, therefore tapping on healthy products will be essential to meet the needs of all clients.


Coca-Cola is one of the leading beverage-producing organizations in the world. The firm has tapped on a differentiation strategy that focuses on low-cost leadership and branding to achieve its goals and objectives that are instrumental in the process of attaining the mission and vision of the firm. Through cost leadership, the firm carries out economies of scale to reduce the cost, of research, development, learning, experience, promotion, and all the operational processes. Branding is instrumental in the marketing process, and Rumelt recommends for strategic thinking to identify the weaknesses and strengths of a firm and other organizations to have added advantage. Also, product diversification is vital in reaching out to more clients. Lastly, I will use the OODA Loop decision process to introduce some strategies that will be vital to the organization.

Annotated Bibliography

Banutu-Gomez, M. B. (2012). Coca-Cola: International Business Strategy for Globalization. The Business & Management Review. Retrieved from

Banutu-Gomez (2012) singled out six key strategies that are essential for globalization. The six strategies are; differentiation, distribution, marketing, and collaborative approaches: management and labor. The researcher chooses Coca-Cola in carrying out as a case study to elaborate on why beverage manufacturing has dominated in the sector for the last century. This scholarly article is essential in this essay since it helps answer the main question of the planning strategy.

Rumelt, R. P. (2012). Good Strategy/Bad Strategy: The Difference and Why It Matters. Strategic Direction. New York, NY: Crown Business.

Rumelt (2012), in his book, pays more emphasis on the right and also bad strategies that companies use in the current world. The author of this book reminds managers that a strategy is a pillar of any firm and spending more time and resources to craft one of the best is vital in ensuring a company achieves its goals, objectives then the mission and vision. Rumelt focuses on some of the strategies for building a workable plan. This book is vital for this essay since it points out some of the advantages that a firm can have after adopting the most suitable strategy. The benefits are; singling out the weaknesses and strengths of the firm and competing organizations. Moreover, an organization can use marketing trends like technology to influence production and lower the cost of goods to have an edge.

Von Clausewitz, C. (2012). The OODA Loop & HEMA. Retrieved from Von Clausewitz (2012) analyses John Boyd's decision-making and suggests that it was based on his years of aeronautic combat instructions, and flight training. The concept was tested, approved, and vested. Boyd concentrated on four ideas; the first concept is observation, which entails the art of time and space, thus making maximum use of all the senses. Observation is a crucial measure in knowledge acquisition, which is fundamental in identifying accurate information. The second concept that Boyd illustrates, in his article is orientation, where all the information gathered is channeled into knowledge for making critical decisions. The mental process of information is vital to police officers, and firefighters, and forms the basis of decision-making. The third idea is action. Lastly is the concept which entails an individual taking any action and then observing all the outcomes.


Banutu-Gomez, M. B. (2012). Coca-Cola: International Business Strategy for Globalization. The Business & Management Review. Retrieved from

Rumelt, R. P. (2012). Good Strategy/Bad Strategy: The Difference and Why It Matters. Strategic Direction. New York, NY: Crown Business.

Von Clausewitz, C. (2012). The OODA Loop & HEMA. Retrieved from

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