Coca-Cola – An Evaluation of Opportunities, Innovation, and Entrepreneurial
This report was prepared in order to evaluate the Coca-Cola Company in reference to whether the company created or developed new opportunities. It participated in innovation activities, and whether it behaves as an entrepreneurial organization.
The findings of the report conclude that Coca-Cola has, from the initial point of conception, continuously developed and created new opportunities for the growth of its products in the various different regions of the world.
Coca-Cola is also not a company that has successfully survived 125 years in the beverage industry without innovation; rather, innovation has been the key base of the success of the company. Starting from new innovative products, including the flagship product coca-cola, which was a recipe much cherished when it was first introduced and to date remains the biggest selling product of the company. Further innovation in equipment were in the form of energy-saving coolants, space-saving dispensers. Those are able to contain more liquid weight, ,etc. They are the other forms of innovation by the company in the past years.
Entrepreneurship is also found as an innovation strategy in the organization as new ideas are regularly collected from the various departments of the organization and then reviewed for their practicality in different regards.
Some examples of Coca-Cola’s innovation activities are also discussed in the report, including its EKOCENTER project and yearly gathering of professionals to generate new workable ideas for the organization, besides other activities performed by the organization. Also, some marketing techniques that emerged as marketing innovations are also discussed in the report.
Coca-cola is a world-renowned multinational beverage manufacturer and corporation with more than 500 brands of nonalcoholic concentrates and syrups circulating under its name in the market across the world. Headquartered in Atlanta, Georgia, the company is known for its flagship product “Coca Cola” invented in 1886. Coca-Cola currently operates in about 200 countries and regions worldwide and serves a record 1.7 billion serving each day.
It has a long history of the organization and its efforts towards the betterment of society, economy, and a better world. It was a long slogan for the company that makes it ideal to be discussed in the perspective of this report. Coca-Cola enjoys a long record of innovations introduced in its respective beverage. This industry sector is known to create regular opportunities.
In the following sections of the report, first, we will analyze how the Coca-cola Company developed and created new opportunities and what it has done until now and plans to do in the future. Also, we will discuss the organization from the perspective of innovation management and as an entrepreneurial organization. The company’s past record and present and future attempts in these regards will be analyzed, followed by a conclusion of the findings.
Coca-Cola, as an Opportunity Creator
There is no doubt about the phenomenal success of Coca-Cola. It records 403 servings per capita in its annual 2011 report in the US, with counts dropping to 38 and 12 drinks per capita in China and India, respectively (Bias, 2012). It has the high count of selling beverages at different points globally. Coca-cola still aims to increase its sales in regions where it exists and aims to target new markets as well. Coca-Cola has always targeted and invested rather heavily in the infrastructure in markets. Certainly, these are emerging as this technique makes it easy to sell their product.
Coca-cola not only markets soda and fizzy drinks but a wide range of healthy options to act to its benefits, including bottled water and fresh juices. Out of the 500+ products that Coca-Cola markets, water and its flagship product, Coca-Cola presents the company’s biggest opportunity ahead. The annual review of 2011 revealed that Coca-Cola company experienced a 3% increase in the global sales volume of coca-cola in the year, while its bottled water brand Dasani saw a 10% global sales volume increase (Bias, 2012).
Coca-Cola as an Innovator
Coca-Cola cola, from the very start of its success ladder, has been involved in different forms of innovation, which have cost the company a lot but have also acted to benefit it. As mentioned earlier, Coca Cola has focused on infrastructure more to sell its products and has invested heavily in it. One case that can be considered here is the India case, which is presently Coca-Cola’s seventh-largest market in terms of volume sales (Gupta, 2013). When Coca-Cola introduced itself in India after a 16-year exile from India in 1993, it had to face a fierce battle against its arch-rival Pepsico, which held 40% of the market share, while the leading beverage company in the country, Parle enjoyed 60% shares (Gupta, 2013).
Today, the consumption of beverages in India has increased by seven folds compared to 1993, when Coca-Cola was available with only 6% of the beverage suppliers in the country and is now available at 25% of beverages FMCG retailers. Coke, however had to invest $3.5 billion to attain this success.
Coke invested in its innovative hardened plastic crates instead of wooden ones (Gupta, 2013). It introduced a new self-serve dispenser for beverages. They are capable of saving a lot of storage space compared to traditional tap fountains (Innovation Weblog, 2013). It includes Energy efficient coolers, Plant bottle technology (Coca Cola Company, 2013b), etc.
In addition to innovation in the product and selling techniques, Coca-cola invested highly in human health. The other social sectors were in the form of introducing micro-dosing technology. Which was effectively being used for measuring amounts of cancer drugs and dialysis. They have many other contributions towards innovation contributing to mankind (Innovation weblog, 2013). The introduction of EKOCENTER a campaign dedicated to providing safe drinking water to rural areas, especially in Africa (Coca Cola Company, 2013a). Coca-Cola contributed US$2.5 million to aid typhoon relief in the Philippines (Coca-Cola Company, 2013b).
From the beginning of the formation of the Coca-Cola Company, Coca-Cola is working in innovation. It has experienced forms of open innovation, including global partners, to help them in their quest. The company continuously aims to know its customers better and continuously innovates in ingredients, products, equipment, packaging, and everything else (Moye, 2013).
Coca-Cola follows a “Distributed, Connected and Shared” system of R&D and uses its global presence to innovate with its partners. One example will be of a product Minute Maid Pulpy, which contains bits of the fruit of which the drink is. The product was initially available in the company’s Shanghai R&D and rolled in China initially before hitting other markets. Currently, Coca Cola Company has 6 R&D centers across the globe working simultaneously for improvements in every discipline of the company (Moye, 2013).
Coca-Cola as an Entrepreneurial Organization
Coca cola’ strength lies in its ability to perform its ideas and blend the customer’s choices. The company’s innovative qualities into justified entrepreneurial activities. The company’s old legacy proves how it has managed to increasingly apply profits to its accounts by using market-friendly techniques from the start.
Coca-cola has, from the start, focused on getting close to customers and blending in their lives as part of it. For this purpose, one marketing technique the company is successfully using the slogans. They use to define the company’s goals in alignment with the customer’s goals.
The history of slogans and Coca-Cola starts in 1940 when the first slogan, “The only thing like Cocas cola is Coca cola itself,” was released, followed by the “Where there’s coke there’s hospitality.” slogan, each representing a specialty of the product and its link with human nature (The Coca Cola Company, 2013c). The company has also used unique advertising and marketing ideas to its credit and has even won the unique ad popular customer award for its exclusive ideas.
Coca-cola is a fully-fledged entrepreneurial organization focusing on all aspects of how to promote its products and increase revenues. Coca-Cola believes that every person that works in the organization is a walking entrepreneur and regularly holds activities that promote new ideas and concepts that come from the very root of the organization. One such activity was held in the headquarters of Coca-Cola in Atlanta, which was a 54-hour event in which start-up ideas were collected from employees. The basic idea behind the activity was to educate and inspire entrepreneurship in the organization. Every June, the Coca-Cola team meet up for three days and pitch in ideas and launch new ideas for products that create new business models and build a prototype that validate ideas in accordance with real customers. The company’s judge panels then further approve the ideas after inspection.
After analyzing the Coca-Cola Company, we can said that the company is a true example of an organization that continuously seeks to create opportunities. Also, develop them through means of continuous innovation in all areas of the company. Also, the company practices entrepreneurship in its true essence and promotes it within the organization as well.
Coca-Cola as a 125-Year-Old Organization
Coca-Cola, based on its innovative ideas of creating prospects and opportunities based in different areas of the world. It has gained the status of a world No. 1 beverage organization. However, another name that seems to compete in any way being Pepsico. The rivalry between Coca-cola and Pepsico has been as long as the journey of the company itself. However, it is only through innovative strategies, excellent entrepreneurial ideas. Both have abilities to create, develop and take advantage of all opportunities that come their way.
The best example is India, as discussed above. This is an excellent example that shows how Coca Cola through different techniques, managed to re-root itself in a country. From where it left 16 years ago and with a better implementation strategy and better entrepreneurs to handle this vast market. However, the organization again established itself in a market whose 40% shares were at that in control of Coca Cola’s arch-rival Pepsico. Coca-Cola reclaimed the market and today aims at making it its fifth largest market globally from being the seventh largest presently. The program implementation has an 8-year strategy is on its way (Gupta, 2013).
Coca-cola has 125-year-old history It has been an organization that has continuously created and developed opportunities. These activities helped its growth in various different markets of the world. The result is evident today in the form of 500 plus products in the market today in 200 different regions. This, however would not have been possible if the company had not invested heavily in innovation activities. It includes innovation in products, equipment, services, marketing, etc. Coca-Cola Company has been exceptional in every regard. It includes the skills of its entrepreneurs. Moreover, its will to gather ideas from every possible corner and proper implementation have acted in favor of the company.
Coca-Cola’s main aim has always been to know people better and make their product a compulsory part of their lives. The use of slogans, participating in community service activities, and sponsoring sports are some of the ways the company has successfully exploited to enter the lives of customers and prove the worth of the company’s products as a part of everyone’s life. New marketing and advertising techniques have also helped the organization well. All in all Coca Cola proves to be an organization that has an even brighter future ahead.
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Coca Cola Company. (2013)a. (Sep) Coca-Cola Launches Global EKOCENTER Partnership to Deliver Safe Drinking Water and Basic Necessities to Rural Communities. [online]. Available at <http://www.coca-colacompany.com/press-center/press-releases/coca-cola-launches-global-ekocenter-partnership-to-deliver-safe-drinking-water-and-basic-necessities-to-rural-communities> [Accessed: 27 Nov, 2013].
Coca Cola Company. (2013)b. (Nov) Coca-Cola Launches Global EKOCENTER Partnership to Deliver Safe Drinking Water and Basic Necessities to Rural Communities. [online]. Available at <http://www.coca-colacompany.com/press-center/press-releases/coca-cola-launches-global-ekocenter-partnership-to-deliver-safe-drinking-water-and-basic-necessities-to-rural-communities> [Accessed: 27 Nov, 2013].
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Gupta, S. D. (2013). Coca Cola: Fizzing with innovation, 20 Years On. [online] Available at <http://www.business-standard.com/article/management/coca-cola-fizzing-with-innovation-20-years-on-113102301186_1.html> [Accessed: 27 Nov, 2013].
Innovation Weblog. (2013). Three forms of open innovation: Cases from GE Capital, Coca-Cola, Hyundai and LG. [online] Available at <http://www.innovationmanagement.se/imtool-articles/three-forms-of-open-innovation-cases-from-ge-capital-coca-cola-hyundai-and-lg/> [Accessed: 27 Nov, 2013].
Moye. J. (2013). Rethinking R & D: How Coke Uses Its Global Scale To Take Innovations Further, Faster. [online] Available at <http://www.coca-colacompany.com/stories/rethinking-r-d-how-coke-uses-its-global-scale-to-take-innovations-further-faster> [Accessed 27 Nov, 2013]