Theoretical Concepts of Resources and Capabilities of Coca-Cola Company
Theoretical Concepts of Resources and Capabilities of Coca-Cola CompanyThis research essay is to discuss the theoretical concepts of Resources and Capabilities of Coca-Cola Company. The purpose of this essay is to analyse how Coca-Cola generates sustainable competitive advantage by drawing on the resources and capabilities literature. The discussion of the theoretical concepts will be focusing on resource-based view, tangible and intangible resources, and strategic capabilities.
Overview of Coca-Cola Company
The Coca-Cola Company, founded in year 1886, is the world’s largest beverage company. It is a manufacturer and distributor of nonalcoholic beverage brands, concentrates and syrups. The company own or license and market more than 500 nonalcoholic beverage brands and also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. Its own and market four of the world’s top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite. The finished beverage products are now sold in more than 200 countries. The company headquarter is in Atlanta, Georgia and have 146,200 workforce globally as of December 2011. The company’s revenue was $46,542 million in the financial year ended December 2011. (Coca-Cola Company, 2011)
The theoretical concept for Resources and Capabilities is based on the resource-based view. Resource-based view is a way of viewing a company, primarily application of the bundle of valuable interchangeable and tangible and intangible resources of the company. By anlaysing the resource-based view theory, a company can determine it strategic capability that will leads to it competitive advantage. (Wernerfelt, 1984; Rumelt, 1984)
Tangible and Intangible Resources
Resources consist of tangible and intangible resources. Tangible resources include physical, financial and human resources. Intangible resources are the intellectual capital.