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Business Economics and Finance - Case Study Example

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Summary
This report is about the business development process of one of the world's leading carbonated soft drinks organization, Coca-Cola Limited. Coca-Cola is also the subject and foundation stone for numerous marketing operations and sales management case studies…
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Business Economics and Finance
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Business Economics and Finance

Carbonated water was teamed with the new syrup to produce a drink that was at once "Delicious and refreshing," a theme that continues to echo today wherever Coca-Cola is enjoyed (The Coca-Cola COmpany).
Thinking that "the two Cs would look well in advertising," Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, suggested the name and penned the now famous trademark "Coca-Cola" in his unique script. The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try "the new and popular soda fountain drink." Hand-painted oilcloth signs reading "Coca-Cola" appeared on store awnings, with the suggestion "Drink" added to inform passersby that the new beverage was for soda fountain refreshment. During the first year, sales averaged a modest nine drinks per day.
Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler. A person born in Atlanta and an individual with great business acumen, Mr. Candler proceeded to buy additional rights and acquire complete control (The Coca-Cola COmpany).
The history of Coca-Cola is a story of special moments - times with family and friends and special occasions when Coke was naturally there. Every person who drinks a Coca-Cola enjoys a moment of refreshment - and shares in an experience that millions of others have savored. And all of those individual experiences combined have created a worldwide phenomenon - a truly global brand that plays its own small part on the world stage.
Methodology:
The analysis of this case specifically on the strategy for business development adopted by Coca-cola as also the operational, financial decisions taken by the management at various points of time and its impact primarily on the market share of the company in the primary market place i.e. United States in particular and the global markets in general are discussed. The basis for discussions is research of secondary sources essentially on the internet. Various publications, data from various marketing related academic websites is also referred to in the analysis of this case. The statistics, figures referred to in this case may be subject to copyright of the respective owners and is quoted in this case analysis purely as an academic reference and has no commercial barring whatsoever.
Main findings:
The soft drink industry is highly competitive. Characteristics of the industry include slow growth and maturity, a phase during which weak companies are weeded out of the market by the strongest corporations. In order to stay competitive, soft drink companies must be able to offer their product at a low price. A price that can at least match (or preferably, beat) a competitor's price will allow that product to enter into a consumer's mental set of possible brands to purchase. Because the pop industry produces a fairly standardized product, competitors in the industry cannot entice the consumer to pay a premium ... Read More
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