Please response to the following paragraph and write (typed) about 150-200 word

Question

Please response to the following paragraph and write (typed) about 150-200 word paragraph that you agree about it.

The Coca-Cola company is worldly known. Its longevity has been because of Porter’s strategy. The diversification of its soft drinks from Coke to Fanta to Sprite and Dasani water among its products have enabled them to have a competitive advantage in the soft drinks market. The product variety and affordability have kept new entrants from the market, given it power over its suppliers and customers from bargaining and warded off substitute products from other companies like Pepsi. Its recent African project of Coke studio Africa has established it as an unshakable competitor in the market.

Explanation / Answer

Coca-Cola strategy is a finely tuned one to fit Porter’s 5 Force framework at current times. However, it is difficult to say whether the Porter framework is the cause of the longevity or not.

Nonetheless, if we check the Coca-Cola story with the 5 forces model, we can see that the model works for at least 3/5 places. The business model of high capital expenditure and wide distribution network makes threat of new entrants very small. The threat of substitute is also low as the only competitor they have is Pepsi. The company has created a brand and awareness which has given a bargaining power over their suppliers.

The bargaining power over customers may not be very strong and the competitive rivalry with Pepsi is quite high. This makes them win at 3/5 stages and establishes them as the market leader in soft drinks.

However, their success cannot be solely attributed to Porter’s strategy as there were other factors at play. If it is the case of porter strategy, then Pepsi applies the same strategy, however they are not as successful as Coca-Cola. The branding and promotion of Coca-Cola has contributed heavily to their success and longevity.

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