Coco Cola Business Strategy Essay

1086 words - 5 pages

Strategy-Enviroment Fit
The Coca-Cola Co.
The biggest multinational beverage company Coca-Cola was born in 1892 by Asa Griggs Candler in Georgia. Today The Coca-Cola company is selling more than 400 brands in 200 countries and 94% of the world population knows or heard about the Coca-Cola company by their product Coca-Cola, Coke, Cola or Coca etc., possibly it is the most recognized carbonated beverage company in the world (Sivny 2007). According to Journal of American Business review, what makes the Coca-Cola Company successful in the global food industry is their strong global strategy that based on four powerful strategic foundations: labor and management strategy, ...view middle of the document...

But the Coca-Cola Company was not always been successful in their labor and management strategy. For example: the Coca-Cola in China was involved once in a lawsuit claiming that using prison workers (Wilkins, 2009). Also Coca-Cola was involved in the largest racial discrimination lawsuit in the history. Over 2000 employees were claimed for racial discrimination that time and settled for $192.5 million. Since these incidents, the Coca-Cola implemented the diversity strategy, by making sure their managers are not forcing their home - countries’ ideals/behavior when managing the operations in abroad.
When companies operate internationally, they also have to choose an international operating mode which they need to go through with: Equity based (joint venture) and non-equity based. However Coca-Cola chose both modes and successfully adopting it in their operational system. For Example: In Peru Coca-Cola’s number one competitor was Inca-Cola. Inca-Cola was introduced in 1935, one year before Coca-Cola was introduced in Peru. In 1999, the Coca-Cola Company acquired 50% of the Inca-Cola company, and bought 40% of Jose R. Lindley Corporation and all Coca-Cola bottling rights. Jose R. Lindley was the only bottling corporation in Peru that time. After joining the force, Coca-Cola introduced Inca-Cola to other countries as in Ecuador, in the United States and etc. by using its marketing power (Salas).
Another example of collaboration strategy of Coca-Cola was pioneering foreign investors in Belarus, by licensing a local manufacturer in 1994. Started up its full production facility in 1997. Now the company employs 600 people, and operates 1 bottling plant, 7 depots with warehouses and sales offices in Belarus (History of success).
The Coca-Cola Company has developed a very powerful global marketing strategy, by focusing local market’s needs; in other words they embrace cultural differences. For example according to Journal of Advertising Research: In Morocco soccer is currently number one sport and Coca-Cola is the number one drink. Coca-Cola developed long-term 40 year investments in Moroccan soccer. Also they use Moroccan local television to advertise their product with local actors, Moroccan soccer stars.
Coca-Cola embraces cultural difference yet. Their signature theme of their advertisement is “happiness”. Each commercial of Coca-Cola is fun, colorful and happy, which gives consumers a positive impression all the time....

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