Coca Cola Approach To Strategy Essay

3.1 Use modeling tools to develop strategic options for Coca-Cola Company.

Developing the Strategy: Finding the path to success

How we are going to win in the future? That is key question behind developing a strategy. We need a wise plan to win at anything worthwhile. Professional teams of sports are aware of this fact and this idea can be applied to our organization, department, and team and even to us as an individual.

The answer shall introduce us to a sensible, wise and systematic approach to strategy development.

Approaches to Strategy

In a profitable company like Coca-Cola for which profitability, productivity, and competition are important, our goals will be different from the nonprofit organization or government department.

For example,

These steps are as following:

Step One: Move West

This step makes us reducing our price. It helps us giving an advantage more than our competitors as it puts our product in a strong position. While it is above the old value for money stroke and it can be short-lived as the price reduction can activate a price war because the share loser competitors can respond with their own specific price reductions. Sometimes price proves to be a substitute measure for value, where there a value is difficult to charge so a price reduction can also reduce the perception of customers for the value that is accessible by the product.

Step Two: Move North

It is a move by adding value of customer or enhancing perceptions of customer value by additional useful indications and through market communications. This also puts us above the old value for money line and makes our product especially attractive. By adding customer value it takes longer to reproduce, we could retain the competitive advantage even though in response to come back to the value for money stroke, the competitors could slash their