In Search of a New Model
I need a question answered from HBR case study named: "Coca-Cola in 2011: In Search of a New Model". The question is:
An introduction to the case and What are Coca-Cola’s competitive advantages?
The case-brief should be written in a business scholarly tone, include at least 4 scholarly references
The answer should be HBR case study Coca-Cola in 2011: In Search of a New Model.
Here is the case synopsis:
Case Synopsis: Muhtar Kent, CEO of the Coca-Cola Company, faced a critical decision in 2011 after closing a $12 billion deal to buy its troubled North America bottling operations from its biggest bottler, Coca-Cola Enterprises. The decision was prompted by several changes in the U.S. market, including the bottler's inability to make crucial investments, the growth of alternative, non-sparkling drinks, and the growing power of national accounts, such as Wal-Mart. Now that Coke owned most of its North American bottling network, Kent had to decide whether keeping the labor and capital-intensive side of the bottling business was in Coke's long-term strategic interest. If not, should he re-franchise the bottling business, again, as Coke had done in the past? Or was there a third path? For one of the most successful companies in the world over the last 100 years, Kent's answers to these questions had the potential to redefine Coke's business model for the next century.
Introduction to the case
The Coca-Cola Company is one of the most successful companies in the world, with a long history of innovation and growth. In 2011, however, the company faced a critical decision. After closing a $12 billion deal to buy its troubled North American bottling operations, CEO Muhtar Kent had to decide whether to keep the bottling business in-house or re-franchise it.
The decision was a difficult one, as there were pros and cons to both options. Keeping the bottling business would give Coke more control over its distribution network, but it would also be more capital-intensive. Re-franchising the bottling business would free up capital for other investments, but it would also mean giving up some control over the distribution network.
Kent's decision had the potential to redefine Coke's business model for the next century. If he chose to keep the bottling business in-house, Coke would become a more vertically integrated company. This would give the company more control over its supply chain and could help it to reduce costs. However, it would also make Coke more vulnerable to changes in the market.
If Kent chose to re-franchise the bottling business, Coke would become a more focused company. This would allow the company to focus on its core competencies, such as marketing and branding. However, it would also mean giving up some control over the distribution network.
Coca-Cola's competitive advantages
Coca-Cola has a number of competitive advantages that have helped the company to achieve its success. These advantages include:
- A strong brand: Coca-Cola is one of the most recognizable brands in the world. The company has a long history of building strong brands, and its products are known for their quality and taste.
- A global reach: Coca-Cola sells its products in over 200 countries. This gives the company a significant advantage over its competitors, who often have a more limited geographic reach.
- A strong distribution network: Coca-Cola has a vast distribution network that allows it to get its products to consumers around the world. This is a critical advantage, as it allows the company to reach a large and diverse customer base.
- A focus on innovation: Coca-Cola is constantly innovating, which helps the company to stay ahead of the competition. The company has a long history of introducing new products and flavors, and it is constantly looking for new ways to reach consumers.
- Yoffie, David B., and Renee Kim. "Coca-Cola in 2011: In Search of a New Model." Harvard Business School Case 711-504, June 2011. (Revised August 2012.)
- Hamel, Gary, and C. K. Prahalad. "The Core Competence of the Corporation." Harvard Business Review, May-June 1990.
- Porter, Michael E. Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press, 1985.
- Treacy, Michael, and Fred Wiersema. The Discipline of Market Leaders. Reading, MA: Addison-Wesley, 1995.