Coca-Cola’s Diversification You may be familiar with the story of New Coke. To recap, in the mid-1980s, Coca-Cola reformulated its flagship soft drink in an attempt to better compete with Pepsi. The new drink, named New Coke, failed miserably. But Coca-Cola saved its business by rereleasing the original formulation of Coke under the name Coca-Cola Classic. That, in and of itself, is an excellent case study in business management. However, the more contemporary story is how Coca-Cola has changed its business plan so that no one drink—not even Coke—can heavily influence the company’s success and failure. After years of diversification and acquisition, Coca-Cola currently offers more than 500 brands ranging from soft drinks to fruit juices to water. Additionally, it sells its products in over 200 nations. Nokia’s Market Shift Not so long ago, Nokia was one of the leading makers of cell phones. But technological innovations like the iPhone left Nokia struggling to compete. The solution? Get out of the business of cell phones. In a bold move, Nokia sold its cell phone division to Microsoft and shifted its focus to its other technological endeavors. This helped stabilize the company and prevent greater losses. In an interesting twist, Microsoft recently announced that it’s selling the cell phone business it acquired from Nokia to Foxconn Technology. Foxconn has, in turn, struck a deal with Nokia to use the Nokia name on future cell phones.§ Nokia will earn revenue by licensing its name to a product the company was smart enough to stop making. Questions- What is diversification? Why did coca cola failed in diversification process in 1980s? What is Licensing? How this strategy will help Nokia in capturing back the market? Do you think Nokia could have think something else rather than selling itself to Microsoft? Give reasons to support your answer.

What strategic actions do you think a store like Macys can undertake to survive in the current retail industry?

Amazon has entered into the brick-and-mortar store business with the acquisition of Whole Foods. Do you think this is a good move or a bad move for Amazon? Why?

Inside Teslas Strategy for Growth Tesla has been pursuing a strategy of aggressive growth since its founding in 2003. The companys mission is to accelerate the move to vehicles that will save energy while saving the planet. The key word here is accelerate. Teslas strategy combines a long-term vision of a world fueled by renewable energy with a sense of urgency about creating Earth-friendly vehicles that customers will want to drive now. Because it relies heavily on technology, its not surprising that Tesla is based in Palo Alto, California, home to tech giants like Hewlett Packard and Facebook. The firm operates a single, highly automated manufacturing plant in Fremont, California. It also built its own massive production facility to supply lithium-ion batteries for its vehicles and developed a network of charging stations from coast to coast. Instead of selling through dealers, Teslas strategy is to sell directly to consumers. This unusual arrangement allows more control over the sales process and yields a higher profit margin per vehicle, because dealers arent part of the distribution channel. In planning its products, Tesla has gone beyond the green appeal to showcase the style, speed, and status of its vehicles, marketing to people who want a special driving experience. Consider the Roadster, a snappy, low-slung sports car introduced in 2008. The attractive and sporty Roadster broke the mold for traditional electric cars and rocketed Tesla into the public eye. The company stopped selling the Roadster in 2011 as it focused on launching the Model S, a stylish, high-end, high-performance sedan with self-driving capabilities. The head designer knew he had to create an all-electric sedan that would stand out in a crowded field of competing vehicles made by international giants such as Audi, BMW, and Mercedes. His design blends the best of today and tomorrow, creating a classically elegant yet forward-looking exterior. Just as important, the Model S has an extended driving range, thanks to the companys advanced battery technology. Next, Tesla introduced the head-turning Model X, a luxury SUV with unique falcon wing passenger doors that open upward for access to rear seating. Thousands of consumers rushed to put down a deposit for this new product, eager to be among the first owners. Despite strong demand, the company struggled to increase production output because of the complexities of manufacturing the unique vehicle and because of parts shortages. Tesla delayed deliveries for months while it ironed out these problems. Expanding the product line and targeting a new customer segment, Tesla then introduced the Model 3. This sedan is more affordably priced than the firms previous vehicles, part of the strategy to enter the mainstream of high-volume, all-electric car marketing. The Model 3 has a modern, uncluttered look with curb appeal. The dashboard is similarly uncluttered, replacing the usual gaggle of gadgets and buttons with one touch-screen control panel. Enhancing Teslas reputation for technology, the Model 3s autopilot feature allows for some driverless operations. More than 450,000 people have already submitted a deposit of 1,000 each to reserve a Model 3. Still, Tesla has had difficulty bringing production to full throttle and, as a result, has been forced to delay some deliveries. Looking ahead to the long-term goal of producing 500,000 vehicles per year and profiting from economies of scale, Tesla is hiring thousands of employees and revamping facilities for higher output. It is preparing for several product introductions, including a new Roadster sports car, a Model Y crossover vehicle, and a Semi truck. Can Tesla achieve sustained profitability as it races to meet its ambitious goals, tries to outpace competitors, and seeks to accelerate the transition to renewable energy?30 What are Teslas core competencies, and how do they help the company compete with long-established car companies?

What are generic competitive strategies, and how are they implemented in a firms value chain activities?

Why is strategic implementation most commonly carried out at the operational level?

How are internal factors different from external factors in a firms competitive environment?

What do strategic group members have in common with each other? What impact do firms outside a strategic group have on those in that group?

How does strategic analysis help a firm develop its own strategic position?

What is a firms micro environment, and why is it important?