“Flow Like Water” For Big Profits
“Be formless, shapeless — like water. You put water in a cup, it becomes the cup; You put water into a bottle it becomes the bottle; You put it in a teapot it becomes the teapot. Water can flow or it can crash. Be water, my friend.”
Successful companies have liquid operations. They adjust. They change. They grow.
They “flow like water.”
And they outlast all the rest. Take Coca-Cola for example. What Companies Can Learn From Coca-Cola
Folks feel like they can’t win right now.
Despite earnings beats in every sector, stocks are on the downswing again.
Waning positive sentiment and fear are driving the bus.
The silver lining is there are still bright spots in the market to latch onto.
Coca-Cola is a perfect example.
Coca-Cola ability to remain liquid with its operations is a major pillar of their longstanding success.
But it has fought plenty of uphill battles along the way.
In 1929, at the height of the Prohibition, they faced a dilemma that called a key ingredient, coca leaf extract, into question.
The answer? Simply change the formula and keep on trucking.
50 years later the “Cola Wars” pitted rivals Coke and Pepsi against one another in a high-stakes image battle for market superiority. Who do you think won that one?
Now Coca-Cola is in the midst of another battle; the general public’s war on sugar and other sweeteners.
Terms like obesity epidemic, diabetes, and heart disease called KO’s future directly into question.
But did Coca-Cola roll over and die?
No, they reinvested in building their Zero Sugar brands – including a relaunch of their Diet Coke brand, to a tune of double digit growth in Q1, according to Bloomberg.
In their earnings announcement late last month, Coca-Cola posted earnings of $0.47 per share and revenue of $7.6 billion, according to U.S. News & World Report. This topped analyst expectations for both numbers.
After a decade of declining sales, posting positive volume growth for the first time since 2006 is quite an accomplishment.
The earnings beat speaks directly to Coca-Cola’s ability to keep its operations liquid.
So what can you learn from this?
The status quo only lasts so long. Public sentiment changes.
Companies not willing to adjust wither and die.