Coca Cola Red Ocean Strategy

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Coca Cola Red Ocean Strategy. A red ocean strategy is where companies compete in sectors that are already flooded or bloody. While such markets are often characterized by cut-throat competition, big rivals in this industry jostle to control market share through a pricing strategy. This strategy is adopted mainly is the surest bate to expand the demand for products and outwit the competition. The soft drink industry is one of the domains where the red ocean strategy is applicable. While the soft drink industry has been around for quite long, there have also been a plethora of barriers to entry. Coca Cola and Pepsi are some of the market leaders in the soft drink industry. However, there are many small companies that compete for the market share. Though there is limited shelf space and vending spots, deep-rooted brand recognition of popular, current brands, plenty of factors may impact the competition. Some of the red ocean strategy include

Compete in the same market

Concentrate on beating competitors

Taps into the existing demand

Creates cost-value trade offs

Select between differentiation and cost

Coca Cola Red Ocean Strategy