Final answer:
Coca-Cola used a product development strategy by creating the energy drink Powerade in response to the growing sports drink market. They also utilized marketing and advertising strategies to promote Powerade and compete against established competitors like Gatorade.
Step-by-step explanation:
Coca-Cola implemented the expansion strategy of developing a new energy drink called Powerade in response to the growth in the sports drink market. This strategy aimed to capture a larger market share in the beverage industry by targeting the specific segment of sports drinks. Through extensive research conducted prior to the development and launch of Powerade, Coca-Cola identified potential competitors in this segment, such as Gatorade.
By entering the sports drink market with a new product, Coca-Cola utilized a product development strategy, which involves the creation and introduction of new offerings to existing markets. This allowed Coca-Cola to leverage its strong brand name and distribution network to compete against established players like Gatorade.
In addition to product development, Coca-Cola also employed marketing and advertising strategies to promote Powerade and discourage competitors. Large advertising budgets can act as a barrier to entry for new companies trying to compete in the same space with limited resources, helping Coca-Cola maintain its dominant position in the industry.