Strategic Management and Strategic Competitiveness of the Coca-Cola Corporation

Subject: Company Analysis
Pages: 5
Words: 1458
Reading time:
5 min
Study level: Bachelor


Globalization and constant progress in the technological field are the factors that contribute to the growth of many companies’ commercial potential, which are active in the market. On the example of the Coca-Cola Corporation, the relevant achievements of the enterprise will be considered through the prism of industrial organizational and resource-based models. In addition, the company’s vision and mission statements will be reviewed, and different stakeholders’ impacts on Coca-Cola’s success in the global market will be analyzed.


From the standpoint of globalization, Coca-Cola is one of the most successful global corporations since the company’s trading activities cover almost all countries of the world. At the same time, according to Hitt, “globalization is a product of a large number of firms competing against one another in an increasing number of global economies” (1). This means that Coca-Cola has achieved its success not as a monopolist but as an active participant in market relations. Through decisions aimed at strengthening its competitive advantage, such as extensive advertising campaigns and promotion programs, the brand has gained the trust of a wide range of consumers (United States Securities and Exchange Commission, 2). The desire to cover as many regions as possible has allowed the corporation to optimize its business in accordance with the interests of the target audience. For instance, the sociocultural segment that Hitt lists as one of seven environmental segments explains how the enterprise segments consumers based on taste preferences and marketing perceptions (1). Thus, Coca-Cola has created a brand that is known worldwide not only in its market niche but also in the trading environment as a whole.

The company’s bold market entry policy is another criterion that explains its success in the context of globalization. By using the example of the brand’s entry into the Chinese market, Kraus argues that Coca-Cola’s active penetration into the economic system and international relations, including the cultural outlook, has allowed it to take root firmly in the competitive environment (3). A globalization strategy based on diplomatic and, at the same time, steady expansion into new markets has provided the corporation with recognition and customer loyalty, which are significant success indicators.


The need to meet high consumer demand and follow environmentally-friendly development strategies has driven the development of Coca-Cola’s technological base. As Hitt notes, the pace of technology diffusion has increased significantly during the latest decades, and modern global enterprises have to adapt to it (1). For instance, in its activities, the company under consideration promotes the practice of recycling marine plastics to reduce environmental damage and utilize secondary raw materials for the manufacture of containers (Bumbudsanpharoke, 4). Regarding the digital sphere, changes in global trends have also affected the corporation. The company’s latest report speaks of active media investments and participation in projects to expand the digital base (United States Securities and Exchange Commission, 2). As one of the world’s most recognizable brands, the company seeks to connect with the target audience and organizes special online platforms where consumers communicate, share opinions, and win prizes. This approach contributes to the growth of interest in the brand and allows maintaining a high level of loyalty.

Due to a large number of manufacturing factories, warehouses, and product distribution centers, Coca-Cola uses advanced robotic planning programs. This applies to establishing supply chains and planning available resources to avoid logistics challenges (United States Securities and Exchange Commission, 2). According to Hitt, the active use of disruptive technologies allows companies to conduct active business and compete successfully by following the strategy of continuous improvement (1). In relation to Coca-Cola, the corporation applies e-commerce tactics, data analytics practices, and other forms of disruptive technologies (Bumbudsanpharoke, 4). All this allows the company to remain one of the leaders in its environment and meet consumers’ interests globally.

Industrial Organization Model

Even though Coca-Cola has manufacturing plants in numerous world regions, some external factors are essential aspects to take into account to realize a profit prospect. For instance, Bumbudsanpharoke cites the global pandemic as one of the barriers to the successful sale of the company’s products due to restrictions on border crossings and trade contacts (4). According to Hitt, the external environment also includes competitive issues to consider (1). In its official report, the company ranks PepsiCo as one of its main competitors, and a successful customer-focused policy is one of the strategies to keep the current leadership position and retain the customer base (United States Securities and Exchange Commission, 2). By following the company’s best interest, different enterprises’ decision-makers promote individual growth strategies and introduce “profit-maximizing behaviors” (Hitt, 1). This approach is a valid principle to extract the maximum revenue in the face of external constraints and competitive barriers.

Resource-Based Model

By creating a unique brand, Coca-Cola pays attention not only to external market activities but also to internal aspects of development and uses the available resource base to the fullest. With regard to the resource-based model described by Hitt, the corporation invests in the manufacturing process to create sufficient capabilities to build an attractive brand with clear visions and priorities (1). A significant part of the company’s assets is spent on advertising campaigns that resonate with the target audience and maintain consistently high sales (United States Securities and Exchange Commission, 2). In addition, the company develops a number of trademarks that distinguish it from many competitors and allows for effective partnerships that also have a positive impact on revenues. While successfully adapting to other cultures, Coca-Cola has an individual corporate culture in which employees are offered favorable contract terms (Kraus 3). Thus, the resource base of the corporation is actively used for the constant growth of the enterprise’s potential.


When analyzing Coca-Cola’s vision statement, one can note that the company focuses on a number of aspects related to both operational and other factors. The statement begins with the following words: “To achieve our mission, we have developed a set of goals, which we will work with our bottlers to deliver” (The Coca-Cola Company Mission, Vision & Values, 5). Such a wording with a description of the subsequent objective allows addressing the key areas of the corporation’s development and emphasizes the interest of its management in meeting different needs and obligations. This approach complies with the criteria described by Hitt and highlights the basic areas of work that the company adheres to in its continuous development (1). This strategy has a number of benefits – employee loyalty, competitor respect, client recognition, and other advantages.


Coca-Cola’s mission statement is more precise and concise in its wording. It sounds as follows: “To refresh the world… To inspire moments of optimism and happiness… To create value and make a difference” (The Coca-Cola Company Mission, Vision & Values, 5). Such a slogan is the hallmark of the corporation and demonstrates its unique view of its activities, thereby reflecting Hitt’s idea that mission statements, as a rule, include the interests of the main stakeholders (1). This statement allows Coca-Cola to express its objectives from a non-standard position by influencing the emotions of the target market and, thereby, creating interest in the brand. As a result, in conjunction with the vision statement, the company’s mission is aimed at creating a general impression of the key development paths.


The success of the corporation in question is largely based on the influence of different categories of stakeholders. By following the classification proposed by Hitt, one can highlight capital market stakeholders, product market stakeholders, and organizational stakeholders (1). Coca-Cola is a reputable stock company in the securities market, and the first category of stakeholders, which includes shareholders and capital suppliers, contributes to the company’s financial growth by investing in its development. The second category includes ordinary consumers, suppliers, as well as communities and unions. Interaction with each of these groups allows the company to generate profits and maintain high market positions, for instance, by signing lucrative contracts and building manufacturing factories. Finally, the third category, consisting of managers, employees, and other representatives of the company, determines the operational success of Coca-Cola. By following the intended working plan and fulfilling their immediate responsibilities, these stakeholders ensure the continuous work of the corporation, thereby expanding its sphere of global influence. All three categories are of significant importance for Coca-Cola’s sustainable market activities and financial growth.


Michael A. Hitt. 2020. Strategic Management: Concepts and Cases: Competitiveness and Globalization 13th ed. Cengage Learning.

United States Securities and Exchange Commission. 2021. The Coca-Cola Company and Subsidiaries. Web.

Charles Kraus. 2019. More than Just a Soft Drink: Coca-Cola and China’s Early Reform and Opening. p. 107. Web.

Nattinee Bumbudsanpharoke. 2022. Packaging Technology for Home Meal Replacement: Innovations and Future Prospective. p. 108470. Web.

The Coca-Cola Company Mission, Vision & Values. No date. Comparably. Web.