Chapter 9: Understanding Alliances and Cooperative Strategies

Chapter 9 discussed how corporations use alliances to help benefit from each other and create an advantage. Coca Cola utilizes a variety of strategic alliances all across the board.Creating these alliances helps enhance effectiveness. Coca Cola prefers to partner up with corporations that already have a good reputations and can benefit them to the fullest. These are some of the benefits that Coca Cola achieves with various alliance types: 

Partnerships with Bottlers and Distributors

• Lowers the costs of entering markets.
• Reduces the need for capital.
• Streamlines the company’s portfolio or operational activities.

Acquisition of Brands and Products
• Fills gaps in Coca-Cola’s brand portfolio.
• Reduces competition in the beverage industry.
• Prevents competitors (i.e. Pepsi Co.) from gaining the same market space.
• Grows total company revenue.

The strategy that Coke employs in forming alliances or acquiring other companies generally works well. While Coca-Cola generally partners with bottlers, they sometimes acquire other brands and products .