Coca-Cola Competitive Advantage

Topic: Company Analysis
Words: 292 Pages: 1

In modern business, competitive advantage is a prize sought by all industry players that assists them in ensuring the profitability of an enterprise. As specified in the video, the longevity of such favorable edge can only be achieved if a company utilizes correct marketing strategies. Given the relative saturation of packaged coffee drinks, securing a competitive advantage can be relatively complicated. It is not particularly differentiated from packaged coffee drinks, packaged non-alcoholic drinks or healthy drink options, which have been experiencing a sharp increase in popularity due to recent interest in wellness culture. Arguably, some advantage comes from a relatively rare overlap between coffee drinks and wellness-friendly products but considering the number of close substitutes it is not sufficiently strong to be a unique selling point. It does, however, provide considerable value to customers, and former strategies should be built with it in mind.

A company such as Coca-Cola could invest in the newest barista equipment, thus acquiring additional advantage over competitors. Arguably, this investment is required due to a fact that as it is Coca-Cola does not specialize in coffee drinks. Additionally, competitive threats from rival firms can be neutralized by more extensive focus-group research and marketing campaigns then most of the competitors can afford (“What is Competitive Advantage?”, 2022). The number of expendable resources available to the Coca-Cola company overshadows those of the majority of other drink producers. As such, it is easier for the firm to enter a relatively new territory in a packaged non-alcoholic beverage market. Given the start-up costs and the market penetration costs most of the potential competitors would be discouraged from entering the industry. Thus, although Coca-Cola would need to generate competitive advantage for its new product, the outside conditions are likely to remain stable.


What Is Competitive Advantage?. (2022). Web.

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