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Case Analysis on
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Coca Cola: Universal Appeal
Global Business
BUS- 503
Prepared for
Khan. M. Raziuddin Taufique
Assistant Professor
FBA of Eastern University
Prepared by
Partha Pratim Bhattacharjee ID: 113600031
K.M. Shamsudduha Belayeth ID- 113600033
Rejaul islam ID- 113600009
MD. Mashud Parves ID- 113600046
10 March 2012
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Coca Cola Life Begins Here
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Letter of Transmittal
10 March, 2012
To
Khan. M. Raziuddin Taufique
Assistant Professor
FBA Eastern University
Sub: Submission of Case on Coca Cola Company
Dear Sir,
We would like to thank you for giving us the privilege of conducting the case on
Coca Cola: Universal Appeal
Within this short period, we tried our level best to make this case a successful one.Preparation of this case has enriched our conception on the above subject and has helped usin getting a thorough understanding about Global Business. The practical exposure while onthis case helped our team of bridge the academic work and the practical knowledge. We haveprepared a case on how to handle the situation mentioning in the case while doing businessinternationally.
Although it was not an easy task, particularly the information collection phase was full ofmany tough experiences but we enjoyed and learned a lot in the process of carrying outthat report. Then we tried our best to finish this case according to all of your requirements.We hope this case will meet your expectations. We will welcome any clarification and suggestionregarding this report.
Sincerely yours
Partha Pratim Bhattacharjee MD. Mashud Parves
_________________ _______________
ID: 113600031 ID: 113600046
K.M. Shamsudduha Belayeth Rejaul Islam
_________________ _______________
ID- 113600033 ID: 113600009
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Acknowledgement
This is too tough to prepare a case study without guidelines & help of others. For preparing this
case study we took help from some people. First of all, we would like to convey our sincerest
thanks to our course instructor of BUS-503(Global Business),Khan.M. Raziuddin Taufique.For
being provided and equipped with all kind of knowledge and guidelines to prepare this case.
Without his guidance and support, solving this case would be a lot more difficult. The thought and
focused guidance that our instructor has provided us from the academic and professional
perspective helped us immensely while solving this case. In addition, we would like to give cordial
thanks to my group members a. They provided us a lot of related information about Coca Cola
Company. So we are really grateful for their valuable time, constructive opinion, support and
encouragement. What is helpful to solve this case.
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Table of Content
Content Page No.
1.Introduction 1
1.1 Case summery 1
1.2 Coca Cola overview 2-10
2.Choosing Strategy 11
2.1 SWOT Matrix 11
2.2 Confrontation Matrix 12
2.3 Confrontation analysis 12-13
2.4 Conclusion 13
3.Case Analysis 14
3.1 International Strategy of Coca Cola 14
3.2 Competitive advantage of Coca Cola 14
3.3 Advantage and disadvantage of Indiamarket
14
3.4 Advantage and disadvantage of Chinamarket
15
3.5 Douglas Daft Recommendation 15
4. Conclusion 16
5. Recommendation 16
Reference 17
Appendix 18
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1. Introduction: Coca cola is the largest and most profitable soft-drink company in the world. Ithas a large number of market shares.
1.1Case Summary
Coca cola is the largest and most profitable soft-drink company in the world. Its major competitor isPEPSI CO. On April 15, 1996 Douglas N, the President of the Middle East called a meeting about fartherinvestment in India and China but the committee is in quandary about this tow countries political and
economic condition. Coca cola has some international strategy that-they can always take risk in existing
market and always understood the need to be first in new markets to gain the competitive advantage. The
companys strategy for sustaining its brand image is the three Ps-penetration in the marketplace,
offering the best price with a greater value and making coca cola the preferred beverage in everywhere.
They spend lots of money for advertising. They want capture more market over the world. Coca cola
controls the wealthy market of greater Europe and Pepsi co has been more successful in emerging markets
such as India. China and India has huge population and in here foreign investors want to invest more
money. And the economic growth also good for more information about India and Chinas market
Douglas N ask those countries Coca Cola senior office to crate tow report on India and China economic
and political position. Doing international business coca cola is very much aware about their product and
thats why in soft drinks war still coca cola is leader.
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Thinking that "the two Cs would look well in advertising," Dr. Pemberton's partner andbookkeeper, Frank M. Robinson, suggested the name and penned the now famous trademark
"Coca-Cola" in his unique script. The first newspaper ad for Coca-Cola soon appeared in TheAtlanta Journal, inviting thirsty citizens to try "the new and popular soda fountain drink." Hand-painted oilcloth signs reading "Coca-Cola" appeared on store awnings, with the suggestion "Drink"added to inform passersby that the new beverage was for soda fountain refreshment. During thefirst year, sales averaged a modest nine drinks per day.
Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portionsof his business to various partners and, just prior to his death in 1888, sold his remaining interest inCoca-Cola to Asa G. Candler. An Atlantan with great business acumen, Mr. Candler proceeded tobuy additional rights and acquire complete control.
1.2. History of Coca Cola
BIRTH OF A REFRESHING IDEA
The product that has given the world its best-known taste was born inAtlanta, Georgia, on May 8, 1886. Dr. John Stith Pemberton, a localpharmacist, produced the syrup for Coca-Cola, and carried a jug ofthe new product down the street to Jacobs' Pharmacy, where it wassampled, pronounced "excellent" and placed on sale for five cents aglass as a soda fountain drink. Carbonated water was teamed with thenew syrup to produce a drink that was at once "Delicious andRefreshing," a theme that continues to echo today wherever Coca-Cola is enjoyed.
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Time line of Coca Cola
1886- 1892
It was 1886, and in New York Harbor, workers were constructing the Statue of Liberty.
Eight hundred miles away, another great American symbol was about to be unveiled.
Like many people who change history, John Pemberton, an Atlanta pharmacist, was
inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-colored
liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy.
Here, the mixture was combined with carbonated water and sampled by customers
who all agreed -- this new drink was something special. So Jacobs' Pharmacy put it on
sale for five cents a glass.
Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote
it out in his distinct script. To this day, Coca-Cola is written the same way. In the first
year, Pemberton sold just 9 glassesof Coca-Cola a day. A century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup. Unfortunately for
Pemberton, he died in 1888 without realizing the success of the beverage he had
created.
Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs Candler
secured rights to the business for a total of about $2,300. Candler would become the
Company's first president, and the first to bring real vision to the business and the
brand.
1893- 1904
Asa G. Candler, a natural born salesman, transformed Coca-Cola from an invention
into a business. He knew there were thirsty people out there, and Candler found
brilliant and innovative ways to introduce them to this exciting new refreshment. He
gave away coupons for complimentary first tastes of Coca-Cola, and outfitted
distributing pharmacists with clocks, urns, calendars and apothecary scales bearing
the Coca-Cola brand. People saw Coca-Cola everywhere, and the aggressive
promotion worked. By 1895, Candler had built syrup plants in Chicago, Dallas and Los
Angeles.
Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways. In
1894, a Mississippi businessman named Joseph Biedenharn became the first to put
Coca-Cola in bottles. He sent 12 of them to Candler, who responded without
enthusiasm. Despite being a brilliant and innovative businessman, hedidn't realize
then that the future of Coca-Cola would be with portable, bottled beverages
customers could take anywhere. He still didn't realize it five years later, when, in
1899, two Chattanooga lawyers, Benjamin F. Thomas and Joseph B. Whitehead,
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secured exclusive rights from Candler to bottle and sell the beverage -- for the sum of
only one dollar.
1905-1918
Safeguarding the brand
Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none
too pleased about the proliferation of copycat beverages taking advantage of its
success. This was a great product, and a great brand. Both needed to be protected.
Advertising focused on the authenticity of Coca-Cola, urging consumers to "Demand
the genuine" and "Accept no substitute."
The Company also decided to create a distinctive bottle shape to assure people they
were actually getting a real Coca-Cola. The Root Glass Company of Terre Haute,
Indiana, won a contest to design a bottle that could be recognized in the dark. In1916, they began manufacturing the famous contour bottle. The contour bottle, which
remains the signature shape of Coca-Cola today, was chosen for its attractive
appearance, original design and the fact that, even in the dark, you could identify the
genuine article. As the country roared into the new century, The
Coca-Cola Company grew rapidly, moving into Canada, Panama, Cuba, Puerto Rico,
France, and other countries and U.S. territories. In 1900, there were two bottlers of
Coca-Cola; by 1920, there would be about 1,000.
1919- 1940
The woodruff legacy
Perhaps no person had more impact on The Coca-Cola Company than Robert
Woodruff. In 1923, four years after his father Ernest purchased the Company from
Asa Candler, Woodruff became the Company president. While Candler had introduced
the U.S. to Coca-Cola, Woodruff would spend more than 60 years as Company leader
introducing the beverage to the world beyond.
Woodruff was a marketing genius who saw opportunities for expansion everywhere.
He led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the
Olympic Games for the first time when Coca-Cola traveled with the U.S. team to the1928 Amsterdam Olympics. Woodruff pushed development and distribution of the six-
pack, the open top cooler, and many other innovations that made it easier for people
to drink Coca-Cola at home or away. This new thinking made Coca-Cola not just a
huge success, but a big part of people's lives.
1941- 1959
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The war and its legacy
In 1941, America entered World War II. Thousands of men and women were sent
overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that
"every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and
whatever it costs the Company." In 1943, General Dwight D. Eisenhower sent anurgent cablegram to Coca-Cola, requesting shipment of materials for 10 bottling
plants. During the war, many people enjoyed their first taste of the beverage, and
when peace finally came, the foundations were laid for Coca-Cola to do business
overseas. Woodruffs vision that Coca-Cola be placed within "arm's reach of desire,"
was coming true -- from the mid-1940s until 1960, the number of countries with
bottling operations nearly doubled. Post-war America was alive with optimism and
prosperity. Coca-Cola was part of a fun, carefree American lifestyle, and the imagery
of its advertising -- happy couples at the drive-in, carefree moms driving big yellow
convertibles -- reflected the spirit of the times.
1960-1981
The world of customer
After 70 years of success with one brand, Coca-Cola, the Company decided to
expand with new flavors: Fanta, originally developed in the 1940s and introduced in
the 1950s; Sprite followed in 1961, with TAB in 1963 and Fresca in 1966. In
1960, The Coca-Cola Company acquired The Minute Maid Company, adding an
entirely new line of business -- juices -- to the Company.
The Company's presence worldwide was growing rapidly, and year after year, Coca-
Cola found a home in more and more places: Cambodia, Montserrat, Paraguay,Macau, Turkey and more.
Advertising for Coca-Cola, always an important and exciting part of its business, really
came into its own in the 1970s, and reflected a brand connected with fun, friends and
good times. The international appeal of Coca-Cola was embodied by a 1971
commercial, where a group of young people from all over the world gathered on a
hilltop in Italy to sing "I'd Like to Buy the World a Coke."
In 1978, The Coca-Cola Company was selected as the only Company allowed to sell
packaged cold drinks in the People's Republic of China.
1982- 1989
Diet coke and new coke
The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of
much change and innovation at The Coca-Cola Company. In 1981, Roberto C.
Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola
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Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the
Company with a strategy he called "intelligent risk taking." Among his bold moves
was organizing the numerous U.S. bottling operations into a new public company,
Coca-Cola Enterprises Inc. He also led the introduction of diet Coke, the very first
extension of the Coca-Cola trademark; within two years, it had become the top low-
calorie drink in the world, second in success only to Coca-Cola.
One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-
Cola, the first change in formulation in 99 years. In taste tests, people loved the new
formula, commonly called new Coke. In the real world, they had a deep emotional
attachment to the original, and they begged and pleaded to get it back. Critics called
it the biggest marketing blunder ever. But the Company listened, and the original
formula was returned to the market as Coca-Cola classic, and the product began to
increase its lead over the competition -- a lead that continues to this day.
1990- 1999
New market and brand
The 1990s were a time of continued growth for The Coca-Cola Company. The
Company's long association with sports was strengthened during this decade, with
ongoing support of the Olympic Games, FIFA World Cup football (soccer), Rugby
World Cup and the National Basketball Association. Coca-Cola classic became the
Official Soft Drink of NASCAR racing, connecting the brand with one of the world's
fastest growing and most popular spectator sports.
And 1993 saw the introduction of the popular "Always Coca-Cola" advertising
campaign, and the world met the lovable Coca-Cola Polar Bear for the first time. New
markets opened up as Coca-Cola products were sold in East Germany in 1990 and
returned to India in 1993.
New beverages joined the Company's line-up, including Powerade sports drink,
Qoo children's fruit drink and Dasani bottled water. The Company's family of
brands further expanded through acquisitions, including Limca, Maaza and Thums
Up in India, Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury
Schweppes' beverage brands in more than 120 countries around the world. By
1997, the Company already sold 1 billion servings of its products every day, yet knewthat opportunity for growth was still around every corner.
2000- Now
Coca Cola now
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In 1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy.
Now well into its second century, the Company's goal is to provide magic every time
someone drinks one of its more than 500 brands. Coca-Cola has fans from Boston to
Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In
the remotest comers of the globe, you can still find Coca-Cola.
Coca-Cola is committed to local markets, paying attention to what people from
different cultures and backgrounds like to drink, and where and how they want to
drink it. With its bottling partners, the Company reaches out to the local communities
it serves, believing that Coca-Cola exists to benefit and refresh everyone it touches.
From the early beginnings when just nine drinks a day were served, Coca-Cola has
grown to the worlds most ubiquitous brand, with more than 1.7 billion beverage
servings sold each day. When people choose to reach for one of The Coca-Cola
Company brands, the Company wants that choice to be exciting and satisfying, every
single time.
Coca Cola Brands
Coca cola brands are divided into 7 groups this are
Energy Drinks
For those with a high-intensity
approach to life, our brands of energy drinks contain ingredients such as ginseng
extract, guarana extract, caffeine and B vitamins.
Juices
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Coca cola bring innovation to the goodness of
juice in our more than 100 juice and juice drink brands, offering both adults and
children nutritious, refreshing and flavorful beverages.
Soft Drinks
Dozens of soft drink brands provide flavor and
refreshment in a variety of choices. From the original Coca-Cola to most recent
introductions, soft drinks from The Coca-Cola Company are both icons and innovators
in the beverage industry.
Sport Drinks
Carbohydrates, fluids, and electrolytes team
together in our sports drinks, providing rapid hydration and terrific taste for fitness-
seekers at any level.
Tea and Coffee
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Bottled and canned teas and coffees provide
consumers' favorite drinks in convenient take-anywhere packaging, satisfying both
traditional tea drinkers and today's growing coffee culture
Water
Smooth and essential, our waters and water
beverages offer hydration in its purest form.
Other Drinks
So much more than soft drinks, our brands
also include milk products, soup, and more. So you can choose a Coca-Cola Company
product anytime, anywhere, for nutrition, refreshment or other needs.
Summary
http://en.wikipedia.org/wiki/File:The_Coca-Cola_Company_logo.svg8/2/2019 Global Case Report
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Traded as NYSE: KODow Jones ComponentS&P 500 Component
Industry BeverageFounded 1892Founder(s) Asa CandlerHeadquarters
Coca-Cola headquarters,Atlanta, Georgia, U.S.
Area served WorldwideKey people Muhtar Kent
(Chairman & CEO)Products List of The Coca Cola
Company productsRevenue US$ 35.119 billion (2010)[1]
Operatingincome
US$ 8.449 billion (2010)[1]
Net income US$ 11.809 billion (2010)[1]
Total assets US$ 72.921 billion (2010)[1]
Total equity US$ 31.317 billion (2010)[1]
Employees 139,600 (2010)[1]
Subsidiaries List of The Coca ColaCompany subsidiaries
Website TheCoca-ColaCompany.com
CSR of coca cola
World wildlife fund (WWF) is the worlds leading conservation organization, working in 100
countries, and supported by nearly five million members globally. Striving to build a future in
which people live in harmony with nature, WWFs mission is to conserve nature and reduce the
most pressing threats to the diversity of life on Earth. By 2020, WWF seeks to conserve 15 of the
worlds most ecologically important regions by working in partnership to:
Protect and restore species and their habitats
Strengthen local communities' ability to conserve the natural resources they depend upon Transform markets and policies to reduce the impact of the production and consumption of
commodities Mobilize hundreds of millions of people to support conservation
From protecting endangered species and empowering people to conserve natural resources tocollaborating with government agencies, WWF works at all levels to protect the future of nature.
http://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=kohttp://en.wikipedia.org/wiki/Dow_Jones_Industrial_Averagehttp://en.wikipedia.org/wiki/S%26P_500http://en.wikipedia.org/wiki/Asa_Griggs_Candlerhttp://en.wikipedia.org/wiki/Coca-Cola_headquartershttp://en.wikipedia.org/wiki/Atlantahttp://en.wikipedia.org/wiki/Georgia_(U.S._state)http://en.wikipedia.org/wiki/Muhtar_Kenthttp://en.wikipedia.org/wiki/List_of_Coca-Cola_brandshttp://en.wikipedia.org/wiki/List_of_Coca-Cola_brandshttp://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/List_of_assets_owned_by_The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/List_of_assets_owned_by_The_Coca-Cola_Companyhttp://www.thecoca-colacompany.com/http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=kohttp://en.wikipedia.org/wiki/Dow_Jones_Industrial_Averagehttp://en.wikipedia.org/wiki/S%26P_500http://en.wikipedia.org/wiki/Asa_Griggs_Candlerhttp://en.wikipedia.org/wiki/Coca-Cola_headquartershttp://en.wikipedia.org/wiki/Atlantahttp://en.wikipedia.org/wiki/Georgia_(U.S._state)http://en.wikipedia.org/wiki/Muhtar_Kenthttp://en.wikipedia.org/wiki/List_of_Coca-Cola_brandshttp://en.wikipedia.org/wiki/List_of_Coca-Cola_brandshttp://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/The_Coca-Cola_Company#cite_note-10K-0http://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/List_of_assets_owned_by_The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/List_of_assets_owned_by_The_Coca-Cola_Companyhttp://www.thecoca-colacompany.com/http://en.wikipedia.org/wiki/Ticker_symbol8/2/2019 Global Case Report
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While freshwater ecosystems are a top priority in WWFs work, the breadth and depth of theirwork affects all aspects of nature.
Realizing the strategic value of collaboration, our Company announced a transformationalpartnership with WWF on June 5, 2007 to work toward conserving and protecting freshwater
resources around the world. Over the years, our partnership has blossomed. By working togethertoward a common goal and combining our international strengths and resources, we believe we cando great things and continue to advance freshwater conservation throughout the .
Water stewardship
To be responsible stewards of the water we use, we are becoming more efficient in our water useby reducing the amount we use per liter of product, even as we increase our production volume.We are recycling wastewater, sometimes returning it cleaner than we found it. And we arereplenishing, or offsetting, the water used in our finished beveragesan estimated 23 percent 1 sofar.
We believe the world contains enough water to meet individual, ecological, agricultural andbusiness needs, but only if everyone works to better manage water resources. As a consumer ofwater and as a company with a presence that is at once global and local, we have a particularobligationand a unique opportunityto be a responsible steward of this most precious ofresources. Here is how we are working to do our part.
2. Choosing Strategy
In paragraph 2.1 there will be a SWOT matrix presented and after this the confrontation matrix
can be given in paragraph 2.2. In paragraph 2.3 confrontation matrix analysis is given.
2.1. Table 1: SWOT Analysis of Coca Cola Company
Strength Weakness
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S1: worlds leading brand
S2: large scale of operations
S3: Robust revenue growth
W1: Negative publicity
W2: Sluggish performance in North America
W3: Decline cash from operations
Opportunity Threat
O1: Acquisition intense competition
O2: Growing bottle water market
O3: growing populations
T1: Increasing competition
T2: depending in bottling partners
2.2. Confrontation matrix
In the confrontation matrix the different strength, weakness, opportunities and threats are
confronted with each other. It is built in the basis of the SWOT matrix:
Table-2: Confrontation matrix of Coca Cola
O1 O2 O3 T1 T2
S1 ++ ++ ++ - - +6
S2 + + 0 + - +2
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S3 0 + ++ + - +3
W1 - 0 0 -- -- -5
W2 ++ + 0 + - -3
W3 - - 0 -- 0 -4
+3 +4 +4 +3 -7
2.3. Confrontation matrix analysis
S1& O1= (++)
As coca cola is the leading brand and acquisition intense competition is more important to gain the market
share and coca cola have this ability.
S1& O2= (++)
Bottle water market is booming and as Coca Cola is a well known brand its easy for than to hold the
highest market share.
S1 & O3= (++)
Growing population means number of potentials customer are increasing and as the leader of market
people must think about Coca Cola products.
S2 & O1 = (+)
Acquisition of competition is a very vital point of beat competitors and coca cola are good in this.
S2 & O1= (+)
To capture new market a large scale is will be helpful.
S3 & O2 = (+)
As coca colas market revenue is growing and entering in a new market will increasing more revenue for
the company.
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W2 & O1 = (+)
As coca colas market whole world so a litter bad performance will not effect on its competition.
W2 & O2 = (+)
Coca Cola is a leader in his market so if he effort little in North America than the hole water market will
be his.
S1 & T1 = (-)
We know that Coca Cola is market leader in soft-drink market but in this days Pepsi co is become major
competitor of Coca Cola Company so this is a major threat for the company.
2.4. Conclusion
By this matrix we understand that Coca Cola Company have some weakness and have some threats. If
the company fulfills the likings than the company will be more secure in the market.
3. Case Analysis
3.1. Strategic Issue # 1 coca cola international strategy
Coca cola international strategy is they are ready to take risk in emerging market and they understood the
need to be the first in new market to gain the comparative advantage.
3.2. Strategic Issue # 2 competitive advantage does Coca-Cola has over its major rival Pepsi
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Coca-Colas competitive advantage over Pepsi is that since 1989 up to 1994, its market share is greaterthan that of Pepsi. Coca-Cola has established its position in the foreign market for over a decade. It hasalso invested heavily in bottling operations to maximize its efficiency of production and marketing. Theyalways aim to get involved in the bottling business to fuel continued growth. Coca-Cola has the followingcriteria for making a bottling investment. The coca cola trademark is invaluable. If all of the companyassts burned to the ground today it would have no trouble borrowing the money to rebuild based on the
strength of its trademark alone. Its brand is pervasive around the world.
Coca cola company strong brand in the world market. Coca cola company commitment to building andsustaining its brand image is indicated by the amount of money it spends on marketing . for instance in1995 the company spent 3.8 billion for marketing. Ad spending which is still considered one of the besttools for building brand equity was $1.3 billion. Its major rival Pepso company spent mmore onadvertising at $1.8 billion but had to allocate for these funds for its restaurant and snack food segments aswell.
3.3. Strategic issue # 3 the pros and cons Coca Cola investment further in India market
Advantage of India market:-
Huge population about 936 millions
The per capita consumption rate is 2
Coca cola gallon sales were up to 21%
Economic grew at 6% and 8 million new jobs are crated
Disadvantage of India market:-
Influence of political party in the local market
Under poverty line is high
People have antimultinational sentiment
3.4. Strategic Issue # 4 the pros and cons Coca Cola investment further in China market
Advantage in Chinas market:-
Good number of population about 1.2 billions
23 plant in china
Gallon sales grew almost every year
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People of China like good brand
Their income rate and consumption rate rapidly increasing
Disadvantage of China marker
In china have some economic politics
Government imposes high tax rate in foreign brands
3.5. Strategic Issue # 5 Recommendation Douglas on executive committee
Coca cola should go for more investment in China because the population of China is more than India and
the economic growth are high in China. People of China like good brand and they ready to pay high for
that. The consumption rate is also high and China people dont have antimultinational emotion like India.
4. Conclusion
Right this moment the present world is imagining a global village. One single market. One organizationcan sale their product all over the world. Coca Cola is an American multinational beverage corporationand manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups.[2] Thecompany is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John StithPemberton in Columbus, Georgia.[3] The Coca-Cola formula and brand was bought in 1889 by AsaCandler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage,Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7billion servings each day.
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5. Recommendation
Coca Cola should work to erase negative publicity
Need to decries dependency on bottling partners and go for won bottling plant.
Provide sufficient cash in operations
Need more investment in China.
References
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Appendix
Case question
1. What is coca cola international strategy?
2. What competitive advantage does Coca-Cola have over its major rival
Pepsi?
3. What are the pros and cons Coca Cola investment further in India
market
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4. What are the pros and cons Coca Cola investment further in China
market
5. What should Douglas Daft recommend to the senior executive committee concerningfurther investment in the emerging market of china and India? Why?
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