Coca-Cola is a multinational company that boasts of having its presence in virtually every corner of the world. But this does not mean that it does not have its share of challenges in and outside the United States. The company is the first ever soft drink brand to enter the Indian market by the early 1970s. But they left again and returned in 1993. It means that the company faced serious challenges in several aspects of its operations. Some of them pointed to its exploitation of natural resources, quality and market exploitation (Sheikh 2006). It is not only in India where such issues were raised but many other countries as well. One thing that stands out though is the cultural challenge it faced India continues to follow the company to other countries, more especially when the citizens raise complains about how it is run.
Coca-Cola is being challenged that it has exploited the natural resources of the countries where it operates, and has also caused environmental pollution. A case study of some complains that rose in India, state that Coca-Cola has polluted their fresh water resources and thus, this has affected the quality and quantity of groundwater and soil. It is alleged that because of that, the farming sector has been negatively affected because the soils have become less productive and there is no enough clean water to be used in the farms (Vaseth 2002). Such are the challenges that Coca-Cola faced in India and continues to face in its markets in other countries. The issue directly affects its operations because of the negativity it continues to receive from potential customers. It has had a task of cleansing itself and proving itself otherwise because their marketability and sales are threatened because of such allegations.
Coca-Cola has had to contend with the challenging social and cultural issues such as this in order maintain its market and brand. In this case where the major complain is water, it has to find ways of ensuring that their use of these natural resources is not seen as exploitation. Water is a major component in all the Coca-Cola soft drinks. Without it the company will not be in existence. It should, therefore, engage in activities that promote its natural production such as promoting good practices that will help in its conservation and the environment at large (Hofstede 2001). Coca-Cola can engage their consumers in environmental conservation activities such as tree planting, and this will help develop water catchment resources that will promote water production through rainfall. The packaging tools used by the company are a serious threat to environmental pollution. Everywhere one turns to, there are plastic containers used by the Coca-Cola brand strewn everywhere. Most of the developing countries do not have efficient waste recycling programs and therefore, the containers are just discarded anyhow. Coca-cola should take it upon itself to promote responsible living in order to prevent or avoid further pollution of the environment. As a worldwide company that boasts of very high profits, it can redirect some of its profits to developing recycling systems that will recycle their used plastic bottles and steel bottle tops so that they can be reused in the future. The company will have to develop mechanisms of dealing with such upcoming issues in order to remain a darling to its market. Otherwise; such are the issues that will affect its productivity and salability in the long run.
There is an increased competition that the company has to contend with throughout the world. The non alcoholic beverage industry is highly competitive and Cocacola has to deal with local and international competitors in these regions outside of America. A good example of its competitors is Pepsi and this proves a challenge in reaching out to its markets because there are brands that offer them a challenge. Coca-Cola can use strategies that reach out to the consumer ad make it better than the rest in many aspects. Today, many consumers are concerned about their health and that is reflected in what they eat or drink. The company should be on top of the game and know how to address such issues but in a healthy or positive way. The answer to this has always remained in advertising (Ward 2012), but then, the company can go an extra mile and advice on how best the drink can be taken in order to promote its use in a safe environment.
A good relationship with its consumers outside the United States is very vital if the company is to remain as competitive as it currently. The Coca-Cola Company can therefore do a market analysis and address some of the issues it faces in the market outside of the US, and it all begins with addressing the issues raised by the consumers. It is not an easy thing to do, but then, such activities that are mentioned above can go a long way in ensuring that Coca-Cola remains the most reputable beverage company that it has been for a very long time.
References
Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations. Thousand Oaks, CA: Sage, Print.
Sheikh, S. (2006). Business Environment. New Delhi: Sanat Printers, Print.
Veseth, Michael. (2002). The Rise of the Global Economy. London: Fitzroy Dearborn Publishers.
Ward, K. (2012). Marketing Finance. New York: Routledge. Print
