ROKCin’ Coke Some More

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“To use your Coke example, you are focusing on yet failing to see that the key component is the brand. Almost every aspect of the product you mention have to do with branding and not the beverage in the can. Do you see that? I hope it is clear now.”

I got it now! Even though my example wasn’t best for this sort of question your definition speaks clearly: “The key component is the asset a business owns or controls that gives it a competitive advantage in the market in which it operates.”

And in case of Coca Cola is Key Component for sure it’s brand!

So to sum it up, if I understand it correctly, in case of Coca Cola company:

1) the business own a)water and ingredients, manufacturing machinery to turn water and ingredients to fizzy drink and bottle it and of course supply chain to deliver product to stores. (or maybe not, maybe they outsource logistics, it that case it’s not their asset but logistic’s company)

2) It’s their marketing and tradition that provides competitive advantage: Coca Cola is a symbol of US and most recognized fizzy drink in the word. This competitive advantage, this brand recognition we call Key Component. Furthermore since it’s so strongly associated with national identity, brand recognition is likely to endure for a long time even though product itself changes. US is superpower with over 300 000 population and Americans are unlikely to accept product that is not their or power of Coca Cola Company simply ensures the strongest market position.

3) “Competitive advantage is market specific” -> Western consumers demand drink that goes well with hamburgers and other junk food. Alternatively, it is refreshing and gives a lot of (unnecessary) energy. These are all traits that Coca Cola drink provides and therefore ensures market needs.

Am I right?

Best,

Peter


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