INTRODUCTION
The establishment of a bottling plant in Myanmar Republic symbolizes the fact that this country has developed over time to attract prospective investors in its economy. This can also be explained by the change in the political environment of this country after experiencing military rule for over 60 years. The decision to open a bottling plant may also be to ensure cost cutting measures especially with the costs involved in the importation of products from the United States.
Hence, with a democratic political mechanism the company would be able to operate smoothly and also increase production which will consequently improve the company’s productivity levels. Myanmar Republic has also experienced tremendous growth in the recent times and is thus viewed to become a major business hub in Asia. This can be attributed to the increased multicultural relations amongst the population of this country (Morton, 2012). Thus, Coke steps in to take advantage of a possible lucrative business prospect in the region.
It is believed that in order to become successful in global business, investors must be able to adopt proper global business strategies so as to overcome any hurdles that present on the course of global investments. However, there are five significant environmental factors that affect global business startups. These factors include; political, social, economic, competitive and technological factors. These factors are perceived to have an influence on the long term performance of a global business. Political factors require that the political environment should be democratic and also supportive of new investments. The social cultural setting of a region is also important since some cultures might not be compatible with particular businesses.
Consequently, the economic conditions must be efficient enough to be able to help new business to achieve stability in the industry. The issue of interest rates, the cost of investment and barriers to business also impact on the economic condition of a country. Technology advancement must also be up to date so as to be able to help the operations of a business. Lastly, competitive factors are attributable to the competitors in the global market (Hill, 2009). For instance, Coke must undertake a survey to study the nature of their competitors' strategies in the global business platform.
In the case of Coke’s new investment in the Republic of Myanmar, there are some evident external environmental factors that could have contributed to the adoption of this decision. The foremost factor would be the political element of this country. As it has been stated earlier, the country has currently shifted from a military rule into a more democratic system of government. Thus, it is politically safe for Coke to come and invest in the country without experiencing any form of political bias or intimidation. Secondly, the economic condition of the country has been on a rising trend and analysts have even pointed out that Myanmar is destined to become a global business hub (Htun, 2013). Thus this would be a strong indication for Coke that the country is feasible for a major investment.
BODY
The marketing strategies adopted by the Coca Cola Company in its global businesses are influenced by various external factors and thus might be different from one country to another. However, some of its global marketing strategies still have some similarities to those strategies adopted in its domestic market in the US (Keegan & Green, 2005). Beginning with the similarities, Coke has implemented its marketing strategy of creating a brand vision in both the US and in South Africa. This has been made possible through the various campaigns and advertisements made towards strengthening the market position of Coke’s products. Coke has utilized renowned individuals and celebrities to promote their products in advertisements as well as product campaigns in both South Africa and United States (Kotabe & Helsen, 2001).
Secondly, the company has also used price promotions as a marketing strategy in its domestic market in the US and also its international market in South Africa. This is demonstrated by numerous price cuts in different times to suit the consumer’s affordability as well as to counter price rivalry amongst their major competitors. The first difference between the global marketing strategy of Coke in South Africa and its domestic marketing strategies in the US is the idea of undertaking community projects in South Africa (Stonehouse, 2004). Coke has partnered with various organizations to support the people of South Africa in different ways which includes; education, entrepreneurship and capital creation.
Coke has adopted this measure to promote its social responsibility in South Africa and also market itself in the vast country. Secondly, at one time Coke adopted a marketing strategy which was directed at increasing the number of South African Blacks working for the company so as to shun apartheid which was then a contentious issue in this African country. The move was to make the company to be viewed as an anti apartheid crusader and thus increase its client base in the region (Lamont, 2002). These two strategies are different and have not been formulated in Coke’s domestic market in the US. This can be attributed to the difference in the environmental factors of global business strategy between the two countries.
However, for the case of Myanmar, Coke might adopt some of the marketing strategies used in its domestic market. Due to the economic factor of Myanmar, Coke would formulate price promotions as a marketing strategy to tap out the market in this country. But with regards to the political factors of Myanmar, Coke recognizes that this country has experienced a long period of military rule and for this reason it would take up some social responsibility in the area of diplomacy sensitization amongst the people. This corporate social responsibility would thus qualify as one of Coke’s marketing strategies in Myanmar.
CONCLUSION
The establishment of a bottling plant in Myanmar by Coke is a very productive business product and thus the company must strive hard to ensure that it succeeds to control this new market. The best thing to do for the company is to conduct an in depth analysis of the social cultural elements of the people of Myanmar. It is believed that understanding your consumer better is important in knowing the type and nature of product to offer the consumer. However, since the company is a new entrant in this market, aggressive marketing will be inevitable for it to record continued success (Newlands & Hooper, 2009). The economic conditions of the country are quite inefficient but with time this is set to become more effective. Hence, at this time the company must draft marketing strategies which are feasible given the prevailing economic environment of Myanmar.
LEARNING REFLECTIONS
In this study I have learnt that entering into the global business requires a predetermined plan of the relevant marketing strategies to be adopted. However, this is also influenced by various external environment factors due to the difference in market circumstances of different regions in the world. The five key external environmental factors that affect global business strategy include; economic factors, social factors, political factors, competitive factors and technological factors. Therefore, when establishing a global business an investor must take a keen study on every factor so as to learn how to handle the business with regard to every influencing factor. I have also learnt that companies would undertake different global marketing strategies as compared to their domestic marketing strategies. This was the case with Coke having differences in its marketing strategies in its domestic market in the US and its international market of South Africa. Thus, it is these external environmental factors that determine the company’s business strategies in the global business market.
References
Coke Image. (2011). Retrieved from: http://www.newmediaandmarketing.com/wp-content/uploads/2011/05/coke-marketing.jpeg&imgrefurl
Hill, C. (2009). Global Business Today. Boston: Irwin.
Htun, Y. (2013, June 4). Coca-Cola opens Myanmar bottling plant. Associated Press. Retrieved from http://www.boston.com/news/world/asia/2013/06/04/coca-cola-opens-myanmar-bottling-plant/gKWtj2m3g9ixbHX1fIctGL/story.html
Keegan, W., & Green, M. (2005). International Marketing. NJ: Prentice Hall.
Kotabe, M., & Helsen, K. (2001). Global Marketing Management. NY: Wiley.
Lamont, D. (2002). Global Strategy. Oxford: Capstone.
Morton, A. (2012, Nov 13). MYANMAR: PepsiCo plans bottling plant - report.Just - Drinks Global News. Retrieved from http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1151357632?accountid=3783
Newlands, D., & Hooper, M. (2009). The global Business Handbook: The 8 dimensions of International Management. England: Gower.
Smith, R. (2013, June 7). How To Sell Coke To People Who Have Never Had A Sip. National Public Radio Planet Money. Retrieved from http://www.npr.org/blogs/money/2013/06/07/189184092/how-to-sell-coke-to-people-who-have-never-had-a-sip
Stonehouse, G. (2004). Global and transnational business: Strategy and management. Chichester, West Sussex, England: Wiley.
