Coca Cola Strategy Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Analyse the food and beverages industry and how the five forces have affected Coca Cola and rivals and the impact on industry structure, attractiveness, and profitability.
- Analyse the various strategic business units in Coca Cola's portfolio and assess which ones are the stars and cash cows generating the most value, or the question marks, and dogs that may need further investment or divesting to achieve a balance of the portfolio.
- To apply strategy business models and frameworks such as Porters five forces and BCG matrix to real company cases.
1.0 INTRODUCTION
The Coca-Cola Company is an American based multinational corporation that is engaged in the manufacture, retailing and marketing of more than 500 non-alcoholic beverage brands including the iconic Coca Cola. Founded in 1892, the company is headquartered in Atlanta, Georgia overseeing a franchised business model where it makes the famed Coca Cola syrup concentrate which it then sells to more than 300 bottling partners located around the world. Revenue for the year ended 31st December 2018 was US$31.85 billion, compared to US$41.863billion in 2016.
This strategic management case study report examines Coca Cola and the soft drinks industry using Porters Five Forces model, followed by a BCG matrix analysis to find out the various strategic business units in Coca Cola's portfolio and assess which ones are the stars and cash cows generating the most value, or the question marks, and dogs that may need further investment or divesting to achieve a balance of the portfolio.