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Thursday 28 June 2012

Competitive Profile Matrix for Coca Cola


The Coca-Cola is the world's largest beverage company, offering consumers almost 500 still and sparkling brands. Coke has the world's largest beverage distribution network; consuming in more than 200 countries enjoys the Coke’s beverages at an average of nearly 1.6 billion servings a day.


In 2011, Coca-cola was declared the world’s most valuable brand according to Interbrand’s best global brand. Most diversified range of products such as Cola-Cola Cherry, Coca-Cola Vanilla, Diet Coke, Diet Coke Caffeine-Free, Caffeine-Free Coca-Cola and range of lime or coffee and lemon. Coca-Cola has very effective advertising campaign, its advertising also represent the US culture. By sponsoring different games and teams and also featured in countless television programs and films.   

Competitive profile matrix (CPM) is one of the strategic management tools to differentiate among different players with an industry. CPM indicates the snapshot to the companies about their weak and strong points relative to their competitors. In CPM players are measured on the basis of their critical success factors. The competitive profile matrix identifies a firm’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position.
 

Competitiveness of the firm can be measured on the basis of industry key success factors and firms strengths. If variation between the final score is found among the rivals; than with the higher score getter has the greater net competitive advantage and vice versa for lower score getter. The final scores showed that the Coca Cola is a strong company in respect of its competitors. The Pepsi and Cadbury Schweppes stayed on the second and third position with scores 3.48 and 2.88 respectively. Coca Cola has highest score in the industry in terms of industry key success factors.

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