Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass.. Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in columbus, Georgia by John Pemberton. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891.Joseph A. Biedenharn Biedenharn Candy Company
HISTORY OF BOTTLING1894 … A modest start for a bold idea In a candy store in Vicksburg, Mississippi, , Joseph 1899 … The first bottling agreement 1900-1909 … Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses.
1920s and 30s … International expansion Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries.
Generic building blocks of sustainable competitive advantage
Generic Building Blocks of Sustainable
When two or more firms compete within the same
market, one firm possesses a competitive advantage over
its rivals when it earns (or has the potential to earn) a
persistently higher rate of profits
Pruning the portfolio
• Dell became really successful by exploring the web as a distribution channel.
• Gillette has made a fortune by establishing a continuous relationship with
customers based on its disposable razors.
• Apple resurged based on its core capacity of bringing design to computers and
• Cisco became famous for its capacity of configuring activities in new and
innovative supply chains.
• Intel thrived for its capacity to get partners to build on its processing platform.
• Google tapped in an innovative revenue streams by linking highly specific search
results and content with text ads.
• Wal-Mart became dominant by its ability to slash cost throughout its business
The Main Types of Competitive Advantage
Once establishes, competitive advantage is eroded by
competition. The speed with which competitive advantage is
undermined depends on the ability of competitors to
challenge either by imitation or innovation
Sustainable Competitive Advantage
What is meant by sustainable competitive
• Valuable to the firm
• Exploiting weaknesses and neutralizing threats
• Difficult for competitors to imitate
• Not easily substitutable
Sustaining Competitive Advantage
Sustained competitive advantage comes from maintaining higher profits than competitors over long
periods of time.
The Coca-Cola Business Model
• Coca Cola is the best example of a company with sustained competitive
advantage, innovation, an extensive business model and an intelligent and
substantial distribution network.
• The Coca-Cola Company was incorporated in 1892 to produce the sweet fizzy
drink – first developed by a pharmacist – that has become the world’s most
• Today, almost 120 years later, The Coca-Cola Company is still going strong and is
one of the most sought-after stocks on the New York Stock Exchange.
• Coca-Cola’s competitive advantage has proven its sustainability over the last 100
Competitive Advantage of Coca-Cola
• The secret recipe for Coca-Cola, which arguably tastes better than other cola
• Their ability to continue developing new products and re-inventing old ones –
Coca-Cola currently offers over 400 brands in 200 markets worldwide.
• The world’s most comprehensive distribution system has made Coca-Cola
accessible to billions of people worldwide. Coca-Cola is often available in ample
supply to people in areas where other consumer goods companies would never
consider delivering their products. The African continent is an excellent example
– it’s fairly common to see a small shop selling cold Coke in the middle of
• Coca-Cola’s production techniques are so well developed that it costs a fraction of
the selling price to manufacture their product, resulting in high profit margins.
Pruning the portfolio
Another well-known example of a company with a sustainable competitive advantage is Walmart
Competitive Advantage of
Walmart maintains a sustainable
competitive advantage in part because its
strategies are specific to its organization
and these strategies are known for
creating a gap between Walmart's
performance and that of its competitors.
Walmart has created a complicated and
detailed distribution center network which
allows it to move goods to stores more
quickly and efficiently than its competitors,
while maintaining prices lower than its