Strategic Choices for Coca Cola Company Research Paper

Strategic Choices for Coca Cola Company - Research Paper Example On the other hand, weaknesses of the company are negative publicity; health issues attached with the brand, some brands of the company are less popular, poor performance in North America and decline in cash from operating activities. Examination of the external environment demonstrates opportunities and treats of the company. Uncovered market, growing bottled water market, buy out competition and acquisition of the intense competition can be proves opportunities for the company. On the contrary, increasing health consciousness, increased competition from local and international players, legal issues, health ministries of various developing countries are imposing threats on the company (The Coca-Cola Company, 2011). In order to avail the maximum benefits of the strengths and opportunities, the company is advice to handle the threats and weaknesses very carefully. In this context, creation of competitive advantage is recommendable. When a firm has an edge over its competitors then it is said to have a competitive advantage. According Michael Porter, there are two types of competitive advantage viz cost advantage and differentiation strategy. Coca-cola achieved its competitive advantage by delivering same benefits as competitors but on lower cost i.e. cost leadership. However, both local and international competitors pull down its rates to the level of Coca-cola which ended its cost leadership. Then it came up with benefits that exceed those of competitors which are called differentiation strategy. This strategy worked in favor of the company as it positioned the company with distinctive taste in the market. It also added some snacks to its product line which again made its look different (Thinki ng made easy, 2009). The strategic choice of the company is based on the resource based view concept. This concept focuses on creation of competitive advantage by utilizing firm’s resources