Business Strategies

Which of the 3 generic business strategies is used for the company?

The three generic business strategies according to Michael Porter are; OverallCost Leadership, Differentiation and Focus Strategy. The Coca-Cola Company has been an established trademark in the United States since 1886. Since then, the company has been able to differentiate themselves by being known as the world’s largest manufacture, distributor and marketer of non-alcoholic beverages and syrups. There are over 3000 products bearing their famous trademark that are now sold in more than 200 countries worldwide. The Coca-Cola Company follows the differentiation strategy by spending enormous amounts of money in advertising to differentiate and create a unique image for their products. It provides different products to the customers and has been very much successful in gaining a leading position among the competitors.

Given that Coca-Cola is already well established around the world, they do not need to apply an overall cost leadership strategy. The price of their products do not need to be cheaper than their competitors in order to gain an advantage, because of how differentiated they make the brand to already be. They also do not use a Focus strategy, because Coca-Cola offers manydifferent beverages to market to a broad scope of people. These drinks include; fruit drinks, energy and sports drinks, bottled water, and an assortment of different flavors of carbonated.