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Coca-Cola 2018

#Strategy #Diversification #Changing Business Environment


アブストラクト

In September 2018, a report from BNN Bloomberg stated that Coca-Cola was in talks with Aurora, a Canadian licensed cannabis producer, considering the development of cannabis-infused beverages (with a non-psychoactive ingredient, CBD). The case study takes on the role of Francisco Crespo, Chief Growth Officer. In 2018 he is in charge of Coca-Cola’s growth strategy and, in particular, of the brand diversification of Coca-Cola’s portfolio. He tries to assess if venturing into the cannabis-infused drink is a right strategic move for Coca-Cola. The Coca-Cola Company, albeit the leader in the soft drinks market, is too reliant on carbonated soft drinks, which account for 70% of its sales. With changing consumers' preferences – for health and wellness reasons but also boredom of the current drinks market offering, and governmental interventions – including taxation on sugary products, it needs to achieve the strategic transformation to adapt to the new global landscape. Sales of cannabinol-containing products in the U.S. are expected to increase 15-fold over the next five years, making it a promising diversification option for Coca-Cola. As the cannabis industry continues to evolve and legalization progresses, more and more companies are taking the plunge, but mainly are alcoholic drinks producers. Should Coca-Cola take such a bold move despite the legal incertitude and risks on its brand image of going into a controversial industry? The case aims to help students understand strategic moves taken by companies to adapt their value proposition in a changing business environment; apply strategic management frameworks to analyze the current industry (Porter 5 forces, 3Cs, SWOT); recognizing and mitigating risks in business-decision making and understanding the evolution of ethical standards. The case also gives students experience in making decisions regarding uncertain and ethically controversial but growing and dynamic markets.

詳細情報

ケースID 20-1089
登録 2020
業界 清涼飲料製造業
分析領域 総合経営
ページ数 28
言語 English
ティーチングノート あり