Question

Coca-Cola was primarily known for its core competencies in marketing, bottling, and distributing aerated drinks. However, with the success of Gatorade, Coca-Cola developed competencies in the development and marketing of its own sports drink, Powerade. Which of the following is true of Coca-Cola?

Answer 1

Answer:

B. It is building new core competencies to protect and extend its current market position.

Explanation:

Core competencies refers to the ability of  a company to utilize the resources that they have to differentiate its own product over the ones made by the competitors.

Initially Coca cola's core competencies was in its ability to make popular and very well-liked soft drinks.

When Coca cola decided to created Powerade, they basically break out from its current core competencies since the consumers of this product are not typically the same as their existing coke. (powder will most likely used by athletes and fitness enthusiast for its function/nutrients while the coke will most likely consumed by people for the taste rather than the nutrients)

So we can conclude that Coca Cola  is building new core competencies to protect and extend its current market position and move to the fitness industry.