Although TCCC presses for global dominance, the company is also involved in satisfying local demands. The company does not subscribe to the “one size fits all” philosophy, rather the company creates unique products to satisfy regional trends. The company emphasizes locally owned and operated bottling and distribution operations. The result is a unique experience that differs from region to region, tailored to the flavors and preferences of that region.
TCCC’s primary strategy is based on profitability derived from the correlation between a firm’s market share and the increase in profitability. This strategy, defined by Buzzell and Gale, recognizes that scales of economy and market share leadership lead to:
1. Dependable and consistent product.
2. Provide customers with a consistent experience, customers will become comfortable with the product, and customers will be unwilling to venture off and try new products.
3. An influential position that allows the company to negotiate lower prices from suppliers and exert price pressure on competitors in each region.
4. A more organized management team.
TCCC has utilized this strategy in magnificent form. The company has excelled as an industry leader, cost leader, and has made historic gains in global dominance. Coca-Cola is the benchmark. (For other competitive considerations, please see “SWOT Analysis” Section).
TCCC has begun a mission of vertical integration by purchasing the North American business of Coca-Cola Enterprises Inc. (‘‘CCE’’), one of Coca-Cola’s major bottlers. We are yet to see how this fits into TCCC’s larger plan and whether it will conflict with its business model of local bottlers and distributors.