Sustain Competitive Advantage

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3.1 Explain how products are developed to sustain competitive advantage There are three levels of coca cola’s products. They are core product, actual product and augmented product. Core product Coca cola’s products are high quality standards for the customer. Coca coal’s core products are energy drinks such as Coca Cola Zero, Coca Cola Diet. One of the benefits of drinking coca cola is that it contains caffeine, a natural stimulant found in the kola nut, coffee beans and tea leaves. Caffeine makes you feel more alert when you are tired and refresh your mind. Actual product Actual product is the one which is manufactured after a decision has been taken on what your core product is going to be. It includes packaging, style, brand and…show more content…
According to life cycle, coca cola is currently in the maturity stage. To extend its maturity stage, coca cola has developed marketing strategies such as product improvement, new models were developed, it entered new market segments and enlarged its distribution channels. During this stage, coca cola’s products are established and the aim for the manufacture is now to maintain the market share they have built up. Coca cola is the largest beverage company in the world. It is the number one selling drink and it has been doing it for many decades. Coca cola spent lots of many in research and development of its products. Coca cola has many competitive advantages because other companies enter its market barrier to entry. For instant, there are many companies which produce similar products as coca cola. Coca cola did not file its patent whereas IBM did but both companies are successful. Therefore, coca cola’s company is making it get bigger and bigger in terms of sales and market share. Moreover, coca cola’s company must produce more new brand products such as coca cola coffee and coca cola…show more content…
The price of Coca cola’s products is set around the same level as its competitors. Coca cola has intense competition with Pepsi so its pricing cannot exceed too much nor decrease too much as compared to the price of Pepsi Cola. If the price of coca cola exceed too much from Pepsi, people will shift to the Pepsi Cola. On the other hand, coca cola decreases people might get the impression that its quality is also low. Competition-based pricing strategy is allowed coca cola to compete more effectively in the soft drink market. Pricing leader occurs when there is powerful business in the market which is to be the market

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