Introduction
Coke’s market value significantly increased under the leadership of former CEO, Roberto Goizueta, but declined when he was replaced. Since 2000, when a new chief operating officer took over, investors have questioned how Coke can maintain its dominance in the industry. The company’s global domination is at stake due to competition from primary competitors. Furthermore, the unfortunate introduction of New Coke has led many to doubt its ability to regain its reputation with the public.
View Point
Coca-cola’s ex-CEO, Roberto Goizueta, emphasized the importance of raising and trading capital for profit. This approach would allow the company to expand by investing less capital and generating more profit without utilizing the capital. Studies have shown that using EVA yields better results than other similar competitors. Conversely, Douglas Daft prioritizes the company’s growth through strong connections with global consumers. He emphasizes the significance of thinking and acting at a local level.
He discusses the importance of leading the company based on its expertise, management systems, capital strategic structures, as well as plans for increased sensitivity in product distribution areas. He acknowledged that the company had taken the wrong path in the late 90’s when Coke became too large, inefficient, and unresponsive in its distribution process. He also focused on improving human resources practices, ensuring fair treatment for all employees and preventing harassment among coworkers and managers. Additionally, he restructured the management team to align with his mindset.
III. Problem Statement
How should
Can Coke regain its global dominance through strategic plans to increase its market value? IV. Objectives 1. This year, aim to expand the growth potential of a carbonated soft drink in the market. 2. Increase profit this year by developing a noncarbonated product variety. 3. Create development on service channels within the next six months to improve customer relationships and market the product. 4. This year, make appropriate investments in large prospective markets to establish stronger purchase connections. 5. Focus on increasing cost-effectiveness and competence.
Areas to consider
The Research and Development Department should further investigate the potential of a carbonated soft drink to expand its specific capabilities. This would involve working closely with marketing research findings to enhance an existing product. If needed, improvements should be made to the taste or packaging areas as areas that require innovation. Additionally, the development of a noncarbonated drink would also require thorough research to build a brand image that will undoubtedly appeal to people, especially in terms of taste.
The media’s influence can also play a positive role in promoting new products, particularly given the current emphasis on health consciousness. Enhancing customer relationships can have a significant impact on boosting sales, with strategies such as advertising, promotions, research, and showcasing the product’s image through effective marketing. By effectively achieving financial objectives, this approach can lead to the expansion of affordable packages in specific cities like Beijing and Shanghai, thus strengthening connections with customers.
The company’s market value would be enhanced by the creation of cost-effective products. It is essential to have disciplined routines in order to maintain a good company image, despite any past issues.
Alternative Courses of Action
The company’s objectives focus on expanding knowledge and implementing strategies to prioritize consumer satisfaction. This approach is crucial for promoting product growth and increasing distribution on a global scale.
Adding more marketing attributes to promote health awareness would enhance the brand’s reputation. This should involve incorporating taglines that associate consuming the product with happiness, considering that health is currently a significant concern. Encouraging employees to think and act in a local mindset can lead to differentiation of the company. Investing in large potential markets can boost the product’s value and generate purchase connections. Additionally, employing distinct advertising techniques and promotional strategies can be an alternative approach.
The image of Coke needs to be carefully and thoughtfully designed in order to boost its popularity among consumers. Additionally, recognizing the intense competition in the industry will provide a reference point for the current market conditions.
Conclusion and Recommendation
ACA 1 would have a positive impact on the company’s strategic implementations, allowing it to regain global market dominance. Therefore, Coca-cola’s new strategic initiatives would be beneficial in reclaiming its position in the market.
Given that these are the key focuses in marketing, post-industrial processes, and production of Coke, distributing it to local markets would establish closer connections with consumers. Consequently, Coca-Cola’s reputation would regain its prominence. The expansion and innovation of Coke’s products would contribute to achieving its remarkable profitability.
References
- Cola wars: CocalCola vs. PepsiCo. http://media. wiley. com/product_data/excerpt/16/04717432/0471743216-3. pdf
- Coca-Cola Chief Douglas Daft Outlines Vision for Growth. http://findarticles. com/p/articles/mi_m0EUY/is_13_6/ai_61556497/
