Sample Research Paper on Digital Innovation at Coca Cola Company

Digital Innovation at Coca Cola Company

Background and Introduction

 The Coca-Cola Company is the global leading distributor and marketer of non-alcoholic beverages. The company’s operations are alive in over 150 countries globally. In spite of the success, it faces stiff competition from Pepsi Cola and Cadbury Schweppes. Its innovative marketing programs have enabled a strong international presence and success. The company’s brand has helped the company to maintain its effectiveness and profitability. For instance, Coca-Cola uses innovation production technologies that produce quality products as well as enhancing effectiveness in the company (Epstein & Buhovac, 2014, p.108). The innovation strategy of Coca-Cola focuses on the three main aspects of organizational effectiveness in tackling the challenges facing the performance of the company. Firstly, the leadership efforts are effective in exploring and developing better solutions to the inherent issues and challenges in the society. Leadership of the company offers some relevant guidance and frameworks in enhancing successful implementation of the innovative technologies (Pfitzer, Bockstette & Stamp, 2013, p.102). Secondly, collaboration and engagement with different stakeholders is helpful in driving innovation and the unlocking of the various ideas and opportunities. Lastly, Coca-Cola is focused on accelerating change and transformation in the environment. Thus, developing innovation and technology is targeted at bringing about better strategic decisions and priorities (McIntyre, Ivanaj & Ivanaj, 2013, p.76). Coca-Cola has developed different digital innovation programs and applications towards improving its effectiveness and efficiency.

 

 

Significance and Suitability of the Emerging Technologies in Coca-Cola

Coca-Cola Company has used different digital innovation technologies to enhance its competitive advantage in the markets.  This ranges from social networking setups, green movement and internet connections. Such innovation applications are useful in integrating new technologies in the company’s brand in different ways.  Firstly, in 2009, Coca-Cola was able to develop the greener bottles and improved packaging. The packaging has been to provide adequate opportunity for growing the company’s sales. Secondly, the social networking applications have been relevant in marketing the company’s brand in the international markets. Some of the social networking sites include Facebook and Twitter (Gupta, 2011, p.62). Cola-cola has more than 37 million followers/friends in the social networking sites, depicting its strength on the social networking platforms. This is suitable in marketing its new products, conducting test advertorial campaigns, and creating positive feelings related to the Coca-Cola products. Thus, the adoption of the social networking innovation has grown the company’s brand in relevant way.

Apart from the social networking innovations, the company also developed the freestyle dispensers. The freestyle dispensers allows for the selection of a combination of various drinks.   The freestyle technology disallows an assortment of drinks, but also documents information related with the beverage choices of consumers. The information recorded has been useful during the company’s market research. Therefore, the freestyle dispenser innovation is strategic towards the satisfaction of the customer’s needs (Dauvergne & Lister, 2012, p.37). Most important, Coca-Cola uses online marketing to advertise its products.  The company has targeted advertisements on different websites that implies that Coca-Cola has a strong control over the persons allowed to view their ads.  Thus, most ads are placed in the relevant websites such as local beaches websites and restaurants. This promotes the company’s brand among the diverse customers across the world.  The implementation of digital innovations in Coca-cola has been supported by its sustainability strategy. This also helps in dealing with the looming economic downturns in the global markets (Davila, Epstein & Shelton, 2012, p.297).

Barriers and Drivers of the Technologies in Coca-Cola

The different drivers and barriers influence the successful implementation of the innovative technologies in Coca-Cola. Some of the drivers of enhancing the adoption of innovative technologies are interlinked with the inter-organizational level aspects including good relations between the stakeholders, the availability of strong networks and experts and improved cooperation. Some individual knowledge and capabilities could also be defined as main drivers in supporting the actual implementation of the innovative programs in the company (Carr & Collis, 2011, p.23). For instance, the presence of motivation forms a universal implementation driver necessary to enhance innovation development.

On the other hand, there are some barriers associated with adoption of innovation technologies among the different stakeholders. This hinders the expected progress and success of the innovative programs in Coca-Cola. Firstly, integration of the company’s innovations in the various policies and regulations proves to be a major hindrance. Some policies lack the demand for optimal efficiency, limiting the success of innovative technologies. Also, the lack of adequate financial resources can be identified as a major barrier (Crittenden et al., 2011, p.74). Most of the innovative initiatives and programs require high investment. Some of the departments operate under tight budgets, and thus, the involved stakeholders do not have adequate funds to invest in the innovation technologies. However, good cooperation with the different stakeholders is useful in promoting successful implementation of the innovative technologies.

Key Areas in Coca-Cola

There are various key areas in Coca cola, in which the digital innovations have targeted to enhance collaboration and innovation the different organizations. This helps to build a culture of continued growth and innovation. First, the area of marketing calls for advanced digital innovations to retain the market share as well as maintaining the competitive edge. In terms of the marketing efforts, Coca-Cola has developed strong hub networks that support real time marketing. The digital innovation has proved to be quite efficient in delivering tailored products to the customers (Stead & Stead, 2013, p.129). Thus, marketing forms a key area in supporting innovative technologies. In addition, Coca-Cola has sought strategic partnerships from the different business and government organizations. Strong strategic partnership is one of the key areas, in which grows digital innovations in the business world. The partnerships provide focused real results that are organized with any bias. Most important, Coca-cola was historically formed through strategic partnerships forming a strong brand in the beverage industry across the world.

In addition, the supply chain management and distribution of the company’s products requires relent innovative interventions. This helps to drive the company towards optimization through the innovations. Coca-Cola also responds to the needs of the customers by developing innovative sparkling beverages. The company has used innovative strategies in establishing strong brand and defined objectives. The strong innovations help to build the existing brands and flavors in the market (Heidrich, 2014, p.61). Recently, the company has launched various product innovations towards meet the customer’s expectations. For instance, innovations have made the packaging of the products more sustainable.

Strategic Planning Impact of the Technologies in Coca-Cola

The innovation for long-term success is one of the main strengths of the company. It forms the main strategy focus integrated with the sustainability plans. However, the sustainability challenges forms some of the threats that reduces the size and expansion of the company in the current markets. Thus, innovation would promote collaboration and partnership, in which translates to improved strategic capabilities in the company. It is critical to understand that innovations in Coca-Cola have made the products and services more suitable to meet the customer demands (Rothaermel, 2013, p.69). Thus, the launching and re-launching of the existing brands is a relevant decision that adjusts the company’s strategic plans and focus. Since, it leads to the development of new brand priorities and objectives. Such innovation efforts are necessary to promote the overall strategic planning process. Strategy and organizational effectiveness are crucial in the overall performance of the company. It differentiates between the organization’s market place and the overall success (Kapferer, 2012, p.124). These are well defined and developed through the different digital innovations in the organizations. The utilization of the different strategies within the innovation platforms leads to enhanced organizational effectiveness.

Conclusions and Recommendations

In summary, the digital innovations of Coca-Cola are targeted towards improving the company’s sustainability and long-term growth in the markets. Throughout its production, Coca-cola adapts advanced innovation technologies in order to produce quality products as well as enhancing organizational effectiveness. Digital innovations in the company has tailored the products to meets the expected customers’ needs.  Thus, the decision to launch and re-launch the different product brands is crucial in improving the overall strategic planning and focus of the company. Some of the drivers of digital innovation include good relations between the stakeholders and the availability of strong networks. The company has used innovative strategies in establishing strong brand and defined objectives. The strong innovations help to build the existing brands and flavors in the market. Coca-Cola has sought strategic partnerships from the different business and government organizations. Strong strategic partnership is one of the key areas, in which grows digital innovations in the business world. Therefore, the continued strategic success and performance of Coca-cola is attributable to the overall organizational success and effectiveness.

 

 

 

 

 

 

 

 

 

 

 

References

Carr, C., & Collis, D., 2011. Should you have a global strategy? MIT Sloan Management Review, 53(1), pp. 21-24.

Crittenden, V. L., Crittenden, W. F., Ferrell, L. K., Ferrell, O. C., & Pinney, C. C., 2011. Market-oriented sustainability: a conceptual framework and propositions. Journal of the Academy of Marketing Science, 39(1), pp.71-85.

Dauvergne, P., & Lister, J., 2012. Big brand sustainability: Governance prospects and environmental limits. Global Environmental Change, 22(1), pp.36-45.

Davila, T., Epstein, M., & Shelton, R., 2012. Making innovation work: How to manage it, measure it, and profit from it. New York, NY: FT Press.

Epstein, M. J., & Buhovac, A. R., 2014. Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. San Francisco, CA: Berrett-Koehler Publishers.

Gupta, S., 2011. MIR talks to Stan Sthanunathan, Vice President of Marketing Strategy and Insights, Coca-Cola Company. GfK Marketing Intelligence Review, 3(1), pp. 58-64.

Heidrich, O., 2014. Strategies for Sustainable Technologies and Innovations. The International Journal of Entrepreneurship and Innovation, 15(1), pp. 61-61.

Kapferer, J. N., 2012. The new strategic brand management: Advanced insights and strategic thinking. London, UK: Kogan Page Publishers.

McIntyre, J. R., Ivanaj, S., & Ivanaj, V., 2013. Strategies for sustainable technologies and innovations. Northampton,MA: Edward Elgar Publishing.

Pfitzer, M., Bockstette, V., & Stamp, M., 2013. Innovating for shared value. Harvard Business Review, 91, pp. 100-107.

Rothaermel, F. T., 2013. Strategic Management: Concepts. London: McGraw-Hill Irwin.

Stead, J. G., & Stead, W. E., 2013. The Coevolution of Sustainable Strategic Management in the Global Marketplace. Organization & Environment, 1086026613489138.