Coca-Cola : Capitalizing on Capabilities
Do you know which company has been rated the best global brand by the world leading brand consultancy firm “Interbrand” in 2010? Is it Apple, General Electric, Google? Well these brands are in the top ten but the winner is Coca-Cola Company. It has been rated the best global brand for 11 consecutive years and is one of the most recognized brands.
A 124 years old iconic brand, Coca-Cola has demonstrated its abilities to tackle any challenges that come across its path in the competitive market. The company makes its business operations revolve around the brand itself. The company states it has two core assets - the people and the brand. Coca-cola strongly believes in hiring the right talent and leaders. In its annual report, Interbrand states that the company almost makes no mistake when it comes to competition. Coca-cola succeeds because it has the right people, leaders and is quick in adapting to any fluctuations in the market. Currently, the recent strategies of the company are to get involved more with “consumer engagement” through mediums such as social media, continuous development of internal media projects such as the World Coca-Cola museum and innovative advertising. At the last FIFA world cup, the company was successful in creating a larger footprint though its billboards, advertisements etc.
The article “Capitalizing on Capabilities” by Dave Ulrich and Norm Smallwood discusses the 11 capabilities required for a company to excel in the marketplace. Coca-Cola serves an exemplification as a world leader in the food and beverage market. The brand has a brand value of $ 70.5 billion. The company has displayed these 11 capabilities in many ways for example in innovation, the company launched a new variant of the Coke brand named Coke Zero in 2005. This brand successfully achieved to reached the markets targeting the younger males. Another example is in customer connectivity, the company has managed to quickly adapt to social media by connecting with 11 million fans on Facebook (as of August 2010).
The company’s mission is to refresh the world, inspire moments of happiness, create value and make a difference. One of the company’s vision, for its people, is to make it the best place to work where people are motivated to be the best they can be. The company also encourages leadership, collaboration, integrity, accountability, passion, diversity and quality.
How can competitors of Coca-Cola such as Pepsi (ranked # 23) match the global brand value and ranking. Should they follow the 11 capabilities listed in the discussion by Dave and Norm? Does the company need to go even beyond that?
1. “Capitalizing on Capabilities” by Dave Ulrich and Norm Smallwood