Organizational Risk and Growth Opportunities of Coca-Cola Company

Organizational Risk and Growth Opportunities of Coca-Cola Company
Coca-Cola is one of the global companies known for its carbohydrate soft drink, Coke. The company was established in 1888 by a businessman, Griggs Candler, after the transfer of ownership rights from John Stith (Coca-Cola, 2022). The company dominated the market between the 21st and 20th centuries. It is also known for its hidden trade secret believed to be in the family line. Coca-Cola has used secrecy in marketing products, getting a higher competitive advantage over other companies. The company has also focused on other special drinks to exhaust the beverage industry. Coca-Cola's main aim is to remain competitive in the industry. However, one of the significant ways to gain a competitive advantage is by introducing new products in the market. The paper focuses on a new Coca-Cola product, 0-S Coke, and its funding needs. 0-S Coke is a significant product to the company due to its blend with coffee without any traces of sugar.
Value Proposition
Coca-Cola's current value proposition is the 'Coke side of life' representing happiness whenever the consumer purchases any coke product (Coca-Cola, 2022). The value proposition shows that the products make the customers sociable and comfortable, creating a unique value for its customers that no company can significantly match. The main product of Coca-Cola Company is Coke, a product made out of different ingredients. The major ingredients in the public domain are phosphoric acid, caramel, sugar, and carbonated water. However, some ingredients are only known to the family to avoid market competition. Coke has been branded differently with specific sizes. Therefore, its unique products have given it a large global market share.
A company's strategic plan play a significant role in its success. According to Bank & UniCredit (2012), a company strategic plan is a well-establish process that aligns the organizational vision, goals, and objectives. The overall strategic plan of Coca-Cola is to build a winning consumer-centric portfolio by making high-quality and affordable soft drinks. Some actions to meet the strategic plan thresholds include innovation and research and development by creating a conducive working environment for the employees. Therefore, the plan is long-term to build customer loyalty and growth.
Competitive Advantage
The ultimate goal for any company is to gain a higher competitive advantage which also increases profitability and growth. The company will gain higher competitiveness by funding the project of 0-S Coke. The project focuses on a unique product in the market that no company can match. The discovery of the opportunity was based on comprehensive research and innovation focusing on product differentiation strategy. A product differentiation strategy is an approach to gaining competitive advantages by focusing on a unique product in the market (Barigozzi & Ma, 2018). Many companies are innovating products similar to the normal Coca-Cola brand. However, 0-S Coke brings a new image to the market, which is significant for higher competitive advantage.
The new product shits the company's value proposition in many ways. The current value proposition is to make the customers sociable and comfortable, creating a unique value for its customers that no company can significantly match. However, the new product is sugarless and blended with coffee. Therefore, the shift is from enjoyment to improvement of customers' health. The focus of the new products is to increase extreme energy to the customers and, simultaneously, ensure that sugar elements do not jeopardize their health. Therefore, its uniqueness and value proposition is beneficial to the company.
Risks and Opportunities
Coca-Cola comprises different risk and growth opportunities at the same time. The major risk is intense competition from other brands such as Pepsi. Besides, there is also a threat of substitution since more companies are establishing new brands. However, with intensive research into the company, it has a range of growth opportunities. The new product is likely to interrupt the current industry by making customers shift to high-quality products and reducing health challenges associated with safe products with high energy. Besides, it would also allow the customers to link energy drinks to health.
Regardless of the benefits of the new product, it is also accompanied by different risks. The major risk is that it may change how the customers view Coca-Cola as a company. Coca-Cola products are known for enjoyment, comfortability, and sociability. However, incorporating health aspects may make it lose other customers. The other risk is a financial risk due to new contents brought on board. Lastly, a new product also promotes operational risks due to changes in the production line. Therefore, to minimize such risks, adequate funding for the project is necessary. Besides, the senior management should be committed to ensuring high quality is given priority like any other Coca-Cola brand.
Growth Opportunities
Coca-Cola has different potential growth opportunities. The company can diversify in food and health businesses. The company has adequate capacity for diversification due to higher revenues and annual profits. For instance, it has a revenue of $ 37.27 million which is necessary for diversification (Coca-Cola, 2022). Besides, the company has a larger market share with a positive brand name. Therefore, it would be easy to focus on the health and food business and attract more customers. It can also focus on digital technology for marketing purposes due to increased technological advancement that the management advocate for. Therefore, all the identified growth opportunities would positively impact the company.
A competitive advantage allows growth in different ways. It allows a productive entity to generate superior margins or more sales than competitors (Kuncoro & Suriani, 2018). Therefore, it is easy to make higher profitability and generate more income for the company's expansion and growth. Competitive advantage also promotes brand loyalty and attracts more customers, which leads to business success. With an increased customer base, a company experiences higher growth.
Distinguishing New Product