About This Page
Throughout the course of the spring 2026 semester, we will apply real concepts being discussed to how an existing major corporation is making their decisions. On this page we will be using Coca-Cola, a company I feel the majority of people are familiar with in some way. Feel free to follow along as we explore the world of business!
Chapter 2 Musings
In Chapter 2 of our text, Strategic Management Creating Comparative Advantage, we begin by learning that we need to look outside our company just as much as internally when it comes to making decisions about where we are going next. We are encouraged to look for trends within an industry as well as understand what competitors are facing. In the case of Coca-Cola, they are heavily influenced by external factors with both consumers and competitors. They are looking at factors such as health concerns with drinking sodas, artificial sweeteners, etc… They are constantly adjusting their product line and expanding throughout the world. This is particularly impressive as they have to follow the environmental factors in over 200 countries- this can include ingredient restrictions as well as religious and cultural needs. This company, along with their main business rival, PepsiCo, has done an excellent job of paying attention to those factors that give competitive advantage as they have grown their business to the global success that it is. The competitive environment that Coca-Cola faces is intense, but they have manage to rise above the five forces to be one of the global leaders of beverages.
Chapter 4 Musings
Companies don’t just have tangible assets in their firms. This includes things like culture, relationships with consumers, brand, etc…. A company like coca-Cola has spent decades honing these assets to help them with bottom line sales numbers and overall satisfaction. They can use this intellectual asset base to their competitive advantage. They have this competitive advantage due not only to their products themselves, but brand equity and how they run their company as a whole. We’ve all seen the polar bear commercials throughout our life. Sure, there are other soft drinks that we can choose to buy, but what other brand has that sweet little polar bear popping open a nice cold Coke and enjoying it that we all see in the back of our minds? That’s a core memory for people that give an emotional connection to the beverage they are drinking. Immediately when you see that logo- the font, the red ribbon, etc… there is a sense of knowing what you are about to taste. That really goes for any of the dozens of products that Coca-Cola sells. Coca-Cola has also exhibited dynamic capabilities as they have expanded into energy drinks, waters, teas, and other beverage markets beyond soft drinks. They have adjusted over time to what they see the consumer base asking for. And they have let brands go as they demand has fallen for them. These intellectual assets and dynamic capabilities that we see in Coca-Cola are truly a model for a solid business plan in continuing to be a competitive company on both a domestic and global scale.
Chapter 6 Musings
How do corporations strategize about the best ways to move forward? One way that Chapter 6 of our text focuses on is through diversification. Diversification makes companies ask where they should be competing and not just how do they compete. When it comes to Coca-Cola, they diversify by finding similar markets, using resources that are similar to what they already have access to, and ways to adjust current capabilities. We’ve already talked about how this company has mastered the art of brand recognition, global distribution, brand partnerships, etc… but at the end of the day, how do they diversify what they offer? Coca-Cola has done this by finding new beverages to produce and distribute. They have moved from only the typical soft drinks to bottled water and energy drinks. They have juices and even have multiple coffee and tea brands that they distribute throughout the globe. Coca-Cola is able to capitalize on economies of scope by utilizing services they already have- packaging and production- like bottling systems and distribution lines to do even more of something they already do very well. For the consumer and retailer, it makes Coca-Cola more of a one-stop shop because they can provide such a wide variety of products and that reduces the number of vendors a retailer has to coordinate and have agreements with. The other thing that I think Chapter 6 does a good job of pointing out is that a company can’t just grow to grow. The point of diversification is ultimately to grow, but if the corporate infrastructure isn’t there, a company can grow too fast or not have the support to grow and then they end up with a problem – really lots of problems as they have to dig themselves out of a hole. Diversification only really works when the areas of diversification add to the compnay and don’t require entirely new pieces to fit the existing model.
Chapter 3 Musings
In Chapter 3, we learn more about external analysis and industry analysis in order to understand what could be coming- what are the opportunities and threats that they may face. Chapter 3 introduce’s Porter’s Five Forces to help us analyze threats, bargaining power, rivalry, etc…. In the case of Coca-Cola, there is huge competition directly between this firm and PepsiCo. There aren’t many other major soft drink competitors in the industry so we can focus on this rivalry. Even though there aren’t many competitors, there are many substitutions – water, juice, tea, energy drinks, etc… Some of these items are being made by both PepsiCo and Coca-Cola in order to compete across the beverage market in general and not just the soft drink side. There are very few new firms in this market making the threat of new entrants very low to the market. Coca-Cola has too strong a chokehold on those who love their products. What we are able to see from this new information is that by continuing to analyze what areas other beverage firms are expanding into and taking consumer preferences into consideration, Coca-Cola can analyze the industry market and match it where it needs to in order to remain profitable and a long-term sure thing for investors and consumers alike.
Chapter 5 Musings
Chapter 5 of our text talks about business-level strategies- how a company is able to compete within their chosen industry. One of the things that stands out to me about Coca-Cola as a corporation is that they have chosen to compete with their branding, recognition, marketing, and making customers want to be a part of the Coca-Cola family of drinkers. This is differentiation as I understand it. It doesn’t matter that they are not always going to be the cheapest brands- Sam’s Cola and Big K are typically cheaper and sometimes even Pepsi, their main competitor depending on store sales. They are confident of the fact that their logo is known the world over and bet on how much they will be able to sell and in turn profit from that recognition. Their logo and marketing goes far beyond the grocery store aisles and becomes part of a worldwide culture. We see this in Christmas commercials, brand partnerships with groups like Oowala, Target, Fortnite, and Nike. This is good use of their value chain, also something Chapter 5 talks about. Marketing and brand development/recognition as well as their ability to distribute within a global market all help them to retain their competitive advantage. Coca-Cola is definitely not in danger of becoming stuck as Chapter 5 warns against by how they have set themselves up to conintue to grow that competitive advantage.
Chapter 7 Musings
Firms can create additional value for themselves by expanding into new markets. Chapter 7 tells us that one way for them to do this is by international expansion. Coca-Cola has done this very successfully by being in over 200 different countries. They have found a way to pay attention to what consumers around the world want from their beverage providers. They have adapted products through ingredient shifts, different packaging, marketing in different ways, and many other things to be able to be successful as a global household name. One way that we know this is so true is that they have been an official sponsor of the Olympics since 1928! The Olympics are held every two years (summer and winter alternating) in varying countries around the world. Coca-Cola is one of the highest level of sponsors for this global event. This is made logistically possible since they ar already found in so many different areas of the world! Coca-Cola is very smart in the way that they go about this global distribution system they have. Rather than trying to ship things ll over the world, they have partnerships with regional bottling and canning groups that follow Coca-Cola specific guidelines to aid them in their distribution systems. They don’t have to ship as much and they don’t have to buy buildings and run full production lines everywhere they want to have a share of the market. They can have real time analysis of local demand and supply and then work with their partners to accommodate the need. This would take too many resources and too much time if everything were being shipped world wide from a central location. Coca-Cola has found a way to have strong international presence while ensuring that they are financially benefitting and creating strategic partnerships to maintain competitive advantage.
Meredith Serna, Spring 2026 MBA Candidate, University of Memphis 