Business Growth Strategies

Paper Summary:

This paper provides a comprehensive analysis of Coca-Cola's current market situation and recommends strategies in order to stimulate growth within the organization. It suggests that certain growth strategies are less suitable than others and it indicates that Coca-Cola has difficulty stimulating organizational growth in a largely static U.S. consumer soft drinks (CSD) market.

Introduction
Market Share
Market Penetration
Market Development
Product Development
Diversification
Recommendations
Conclusion
Appendix 1
Appendix 2
References

From the Paper:

"In order to select the correct growth strategies for the organization, it is necessary to analyze the organization's current market share. From the following information it is possible to ascertain that Coca-Cola are currently the CSD market leader in many countries across the world. In addition, trends in the market display little fluctuation in terms of competing companies share of the CSD market. In 2000, Coca-Cola was the best-selling soft drink in supermarkets in the USA (Kotler, 2000). In the same year, Coca-Cola held a 44.1% share of the American consumer soft drinks (CSD) market. Their closest competitor was Pepsi, who held a 31.4% share of the overall market. The CSD market remains to be Coca-Cola's primary line of business activity. In essence, Coca-Cola may choose to diversify their product range and attempt to capitalize on opportunities that lie out with the CSD market (Sheperd & Shanley, 1998). This is one potential growth strategy that Coca-Cola could explore in order to attract new customers and expand the overall size of the business. Coca-Cola have subsidiaries in countries all over the world and are easily able to dominate the CSD market on a global basis. Although this indicates the size and power of the company, it may suggest that the CSD market has very little left to offer in terms of growth potential. According to Shepherd and Shanley (1998), there are two possible strategies that a market leader can adopt in order to promote organizational growth. Hanan (1987) refers to the first of these options as "organic growth". This occurs when an organization seek to expand by increasing existing market share by diversifying into new product lines and categories. Alternatively, a company like Coca-Cola could attempt to induce organic growth by increasing the level of consumption of existing customers (Henderson, 1984)."

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