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Introduction of Coca-Cola:
Coca-Cola (also known as Coke) is a popular carbonated soft drink sold in stores,
restaurants and vending machines in over two hundred countries. It is produced by The Coca-
Cola Company, which is also occasionally referred to as Coca-Cola or Coke. It is one of the
world’s most recognizable and widely sold commercial brands. Coke's major rival is Pepsi.
Although Coke has been the target of urban legends decrying the drink for its supposedly
copious amounts of “acid”, or the "life-threatening" effects of its carbonated water but still it is
the most in-style soft drink. About its safety and the ethics of the company that produces it, it is
widely accepted as the most dominant soft drink in the world today. Originally intended as a
patent medicine when it was invented in the late 19th century, Coca-Cola was bought out by
shrewd businessman Asa Griggs Candler, whose aggressive marketing tactics led Coke to its
dominance of the world soft drink market throughout the 20th century. Although faced with
accusations of perverse side-effects on the health of consumers and monopolistic practices by its
producing company, Coca- Cola has remained a popular soft drink well into the first decade of
the 21st century.
Mission Statement:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.
• To refresh the world.
• To inspire moments of optimism and happiness
• To create value and make a difference
CASH COWS:
LOW GROWTH, HIGH MARKET SHARE
• They are foundation of the company and often the stars of yesterday.
• They generate more cash than required.
• They extract the profits by investing as little cash as possible.
• They are located in an industry that is mature, not growing or declining.
The products which are Cash cows are Limca, Coca Cola
QUESTION MARKS:
DOGS:
LOW GROWTH, LOW MARKET SHARE
• Dogs are the cash traps.
• Dogs do not have potential to bring in much cash.
• Business is situated at a declining stage.
The products which are at Dogs are Diet Coke, Minute maid
Conclusion
• Star Strategy: Invest profits for future growth and for earning more of market share and
profits.
• Cash Cow Strategy: Use profits to finance new products and growth elsewhere.
• Question Mark Strategy: Either invest heavily in order to push the products to star
status, or divest in order to avoid it becoming a Dog.
• Dog Strategy: Either invest to earn market share or consider disinvesting.
Thus the BCG matrix is the best way for a business portfolio analysis. The strategies
recommended after BCG analysis help the firm decide on the right line of action and help them
implement the same.
They outline the three main strategic options open to organization that wish to achieve a
sustainable competitive advantage. Each of the three options is considered within the context of
two aspects of the competitive environment:
Sources of competitive advantage - are the products differentiated in any way, or are they the
lowest cost producer in an industry? Competitive scope of the market - does the company target
a wide market, or does it focus on a very narrow, niche market?
The generic strategies are: 1. Cost leadership, 2. Differentiation, and 3. Focus.
Wajid Ali