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Case Analysis: Cola Wars in China: the Future Is Here

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Case Analysis: Cola Wars in China: The Future Is Here

Prepared by Kulthida Vongtrakool

MAN 787: Business Policy & Strategy Spring 2015

Prepared for: Professor Rimi Zakaria

Date of Submission: March 19, 2015

1. Resources, capabilities, and core competencies Resources: Tangible resources and intangible resources are the factors that Wahaha incorporated to achieve the competitive advantage over the two giants, Coca-Cola and Pepsi. For tangible assets, the company had high volume in capital gain with billions in revenue and profits not including the land and building. Wahaha had more than 42 subsidiaries across the nation in 2002 with many production lines. It also had a valuable marketing team including R&D as well as a technology adopted from Danone group for bottling production. Moreover, its distribution system was ahead of the two competitors. For intangible resources, the firm used its name as a reputation that had sustained profit in the market for many years. Wahaha had been participating in many CSR programs so that it had become well-known among the Chinese. The firm’s founder had a strong drive to push the firm to adopt knowledge by learning over time in order to understand the market. In addition, the firm trademark was the idea of making drinks to make children happy. Capabilities: Firstly, the firm had focused knowledge that was accomplished by the market studying for an in-depth level of understanding and obtaining knowledge of a market. Wahaha’s marketing team conducted many customer analyses and focused on the customers’ tastes and preferences. The firm also learned from the industry, as a food and beverage firm, it always came up with the new ideas of launching the new product lines. Secondly, the firm was well oriented to position its organization towards customers. For example, Wahaha had sponsored child development.

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