Coca Cola South Pacific operates in New Zealand and Australia. The company offers consumers with different products and drinks. The success of Coca Cola Company results from its supply chain and unique brand name. The products of the company are unique and easy to identify.
The consumers are aware of the Coca Cola products (Henry 2008, p. 21). This has made its business successful. However, several factors affect the company’s success. These factors include competition, poor transportation network, and declining consumption. The company faces various threats that affect its profitability.
The Porter’s Five Forces identifies the business environment for Coca Cola South Pacific. The first force is the existence of rivalry in the market. This results from Pepsi and fruit juices from different companies. There are substitute goods that offer a challenge to Coca Cola’s drinks.
These goods include tea, milk and alcoholic beverages (Kemp 2009, p. 26). The bargaining power of the suppliers affects the production levels of the company’s products. The suppliers provide packaging solutions and sugar to the company. The consumers also have their bargaining power. The nature of supply chains and pricing strategies determine the power of the customers.
Strategy of the Major Competitors
The major competitors for Coca Cola Company include Fruit Processing Companies and Pepsi. These companies use an effective strategy to market and distribute their products. The companies use low prices and proper packaging (Hays 2010, p. 74). This makes handling and transportation easier.
Pepsi Company employs a strategic approach to market its drinks. The drinks have unique labels and names. This has made the marketing process successful for the company.
The fruit juice industry uses different pricing strategies to attract more customers (Roy 2011, p. 65). The above approaches have made the competitors profitable. It is necessary for Coca Cola South Pacific to adopt new ideas. This will help the company to overcome the level of competition and become successful.
Coca Cola South Pacific has succeeded in the market because of its unique strategy. The company’s brands are unique thus making it possible to target the customers. Coca Cola uses an effective pricing strategy thereby selling its products to the esteemed consumers.
The other strength of Coca Cola’s strategy is its use of a powerful supply chain. The supply chain has made it possible for the company to meet its targets (Hays 2010, p. 98). The company’s brand identity and name is an important aspect of its strategy. However, the strategy faces certain challenges such as reduced consumption and increased competition from Pepsi and the fruit juice industry.
Recommendations for Coca-Cola South Pacific
Coca-Cola South Pacific is a leading player in the Soft Drink industry in the region. It has the best team that promotes its profitability. The major challenge results from the new competition from the companies selling fruit juices and beverages. I would recommend that the current strategy is enhanced by penetrating deeper into the market. As well, the company can reduce the prices of certain drinks (Kemp 2009, p. 26).
This will make its business successful thereby overcoming the current competition. New advertising strategies will inform more consumers about the products offered by Coca-Cola South Pacific.
The company can also produce new products to attract new consumers. This will improve the company’s competitive advantage. The above recommendations can be used improve Coca Cola Company’s strategy. This will make it the leading player in the market.
Reference List
Hays, C 2010. The Real Thing: truth and power at the Coca-Cola Company, Oxford University Press, Canberra.
Henry, A 2008. Understanding Strategic Management, Longman, New York.
Kemp, K 2009. God’s Capitalist: As a Candler of Coca-Cola, Oxford University Press, Sydney.
Roy, D 2011. Strategic Foresight and Porter’s Five Forces: Towards a Synthesis, John Wiley and Sons, New York.