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Strategic Study on Business Model of Coca-Cola Evaluation Essay

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Updated: Jul 22nd, 2021


Background of Coca-Cola Company

The Coca Cola Company being one of the most known companies in the world was established in the year 1886. Like most business ventures, the company did not get an immediate success during the first year of its operation having reported a considerable loss. Consequently, Mr. John Pemberton, the inventor of the drink, had to sell the formula of Coca-Cola to recover the losses.

He sold the formula to Asa Chandler. By applying his aggressive marketing skills, Asa increased the net sales of the company by 4000% in a span of ten years. Since then, the company has grown to be the most popular company in the world (Hess, 2010).


The mission of the company consists of “refreshing the world, inspiring moments of happiness and creating value by making a difference in the society” (Goodman, 2009). The company can be considered people oriented as its products are tailored towards the needs of the customers.


The Coca-Cola Company has a broad vision which focuses on making the company sustainable in each operation. Its vision is to inspire workers to contribute to the company’s success and achievement of goals through employing their maximum efforts.

Strategic goals and objectives

The company is committed to nurture strong relationships between suppliers and customers. The company aims at maximizing the share ownership over time to enlarge the company’s production as well as providing a wider range of production. Its strategy is to manufacture the products locally and market them globally (Goodman, 2009).

Business model analysis of Coca-Cola

Value proposition

The Coca-Cola Company is one of the most recognized multinationals in the global soft drinks industry across the world. The company is steered by its main values which help in making the company and its products satisfy its customers. Its values include integrity, leadership, collaboration, quality, passion and diversity.

One of the best value propositions of the company in the economic sector is its affordability of products. A remarkably large number of people today can access and buy the drink regardless of their income or social status, hence, giving it a competitive advantage over its competitors. The company is well known for its brand across the world. All brands of the company are unique in their test and are highly acceptable by customers.

Core facets of the Coca-Cola business model

The Coca-Cola Company has opened its operations across all regions of the world. The company has set up subsidiary firms in over 200 countries worldwide. Therefore, it produces from within the countries and sells the products internally.

This is the main mode of operation which has served the company in a massive way. The company combines these values in their operations, which help in best serving the needs of its customers through continued production of quality brands.

The company gives a lot of promotional advantages to its customers, a tactic that gives it an added advantage over its competitors (Coombs & Holladay, 2012).

The company has an extremely strong brand portfolio, hence, making it possible to explore in detail all the customer’s tastes and preferences. The company has created businesses with several other companies being a strategic move that has helped it capture the hearts of many customers in the world today (Petretti, 2008).

The company is also active in terms of running corporate social activities. The company is widely known for sponsoring sporting and other events. Through this, it attains a high sense of publicity. Corporate social responsibility plays a critical role in enhancing marketing activities of the company.

Evolution of the Coca-Cola business model

Coca-Cola is a long held spirited brand. The evolution of the Coca Cola drink took a drastic turn during the years between 1890 and 1900. During the year 1900, Hilda Clark became the first celebrity to feature in the company’s advertisement. This aimed at making its products popular among the people.

In 1906, it developed a new strategy, namely, it created a straight sided bottle which immediately grasped the attention of a number of people in America. In the year 1911, the annual advertising for the company surpassed the million dollar mark.

In the year 1914, the company donated a million dollars to a school, hence beginning its social obligations. That gesture proved that the company’s success had a positive impact on the community (Marshall, 2005).

Asa Candler ensured that the commodity is well known by all and sundry in the United States. He subsequently started thinking of advertising the drink outside the continent. As it is today, the company uses a wide range of platforms in enhancing its activities. Among them is extending operations, in different regions, engagement in CSR and observance of quality in its activities (Tuleja, 2008).


The Coca-Cola Company is a proactive company in terms of its coverage and model of doing business. The success of the Coca-Cola Company has not been attributed to a compelling advertisement and business strategy only.

It has also been attributed to the customer’s orientation concept that the management puts ahead of everything else. This forms the reason why the company will likely continue to succeed with its future objectives.

Reference List

Coombs, W & Holladay, S J 2012, Managing corporate social responsibility: A communication approach, Wiley-Blackwell, Malden.

Goodman, J A 2009, Strategic customer service: managing the customer experience to increase positive word of mouth, build loyalty, and maximize profits, AMACOM American Management Association, New York.

Hess, E 2010, Smart growth: building an enduring business by managing the risks of growth, Columbia University Press, New York.

Marshall, B 2005, Coca-Cola Company: culture, politics, and history: a multidisciplinary encyclopedia 1 [A – D], ABC-CLIO Santa Barbara, Calif.

Petretti, A 2008, Petretti’s Coca-Cola collectibles price guide, Nelson Thomson Learning Scarborough, Canada.

Tuleja, E A 2008, Intercultural communication for business, South-Western Cengage Learning, Mason, USA.

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