Chapter 5: Creating Business Strategies

Chapter 5 discussed the various ways corporations create business strategies. The two main routes that corporations take are either being a low-cost leader or using differentiation. When using a low-cost strategy, companies are able to set themselves apart by manufacturing a good product at a lower cost than their competitors. When differentiation is used ,a corporation is able to distinguish themselves by differentiating their products from their competitors. Coca Cola is known for using a low-cost leadership strategy to help their corporations thrive against competitors . Throughout their existence ,Coca Cola has used pricing strategies to help them gain control markets and give their strong competitors like Pepsi a run for their money. Coca Cola uses low -costs all across the board but even more in markets that are very sensitive to price. Coca Cola believed that they needed to be perceived as different but still affordable.