International Business
International Business
The Coca Cola Company is an international corporation, and it is among the most successful corporations globally. It is based in the U.S., and it has operations in numerous countries throughout the globe. The company has deployed competitive strategies, which has enabled the organization to retain its market leadership in the soft drink industry globally. It records relatively high revenues based on competitive operations in the globe. Although the corporation is American based, it has managed to launch and operate successfully in more than two hundred nations. These achievements have been realized as a result of employing various strategies in the operation of this entity (The Coca Cola Company, 2014). This company employs more than one hundred and forty six thousand persons hence it has been characterized by a number of lawsuits that pertain to the rights of the employees. The company has been sued for matters such as racism, infringement of human rights, and environmental concerns among others.
The Coca Cola Company aims at making a difference as well as creating value. The company seeks to produce beverages that will refresh the world, inspire instants of happiness and optimism (The Coca Cola Company, 2014). The company uses the same mission statements in all the countries that it operates.
Product Strategy
The management team seeks to ensure that the company produces products that boast of the highest quality, innovation and standards. As a result, the management has put in place a state of the art production process, as well as an effective production team. Currently, The Coca Cola Company boast of a brand portfolio that is comprised of more than five hundred brands. However, the management selects the manner in which these products will be distributed. These products are mainly distributed on the basis of geographical region (Cola, 2014). The company makes sure that it has developed a few products that are unique to a given geographical region. For example, in the U.A.E, the company offers products such as Hani and Rani. In South Africa, the company offers a product known as NESTEA. The company offers almost all of their products, in the United States. Maybe this is because it is the home country for The Coca Cola Company.
Distribution Strategy
The Coca Cola Company is not directly involved in the distribution of its products. This is because the management awards tenders to companies that are found to be suitable for carrying out this task. This will enable the company to concentrate on its core business. The distribution of Coca Cola products is carried out through the use of franchises. These franchises are commonly referred to as Coca Cola bottlers (Cola, 2014). The organizations that have acquired these distribution rights are required to uphold certain standards of hygiene, production and ethics. This is a tactic aimed at ensuring the uniformity of their product. This is a strategy that is implemented in all the countries that the organization operates. The distribution channel of Coca Cola is considered to be the best globally.
Pricing Strategy
The Coca Cola Company places emphasis on marketing. This is because it serves as the primary means in which the corporation positions and differentiate its products. As a result, the organization has made significant investments in various matters that pertain to the marketing of Coca Cola products. For example, the organization makes sure that it has developed a new marketing campaign for each year. This will enable the organization to ensure that their products remain first in the minds of consumers. Coca Cola products are considered to be premium products (The Coca Cola Company, 2014). This is because the organization positions them as high quality products. The management ensures that all the products, irrespective of their geographical region in which they retail, of The Coca Cola Company are packed in high quality packages. This is a strategy that seeks to illustrate to consumers the nature of quality standards that the organization upholds.
Competitive Business Environment
The main competitor of The Coca Cola Company in the global market is Pepsi. Pepsi is also an American beverage company and has operations across the globe, making it a strong competitor for The Coca Cola Company. At one point, Pepsi Company was the perceived the leading non alcoholic beverage brand. However, this changed over time. These changes are based on the development of various strategies that enabled The Coca Cola Company to take over this position (Ferrell, 2011). The key strategy that enabled this company to attain this mission is the formulation of an effective marketing strategy. The Coca Cola Company ensures that it advertises its products effectively. It also hires some of the most proficient marketing professionals. This has enabled the corporation to develop stable relationships with customers, market leadership, as well as a competitive brand portfolio. These are all factors that ensure that it remains the market leader in most of the countries in which it operates.
Major Target Market
The Coca Cola Company targets at the same market throughout the globe. This company largely targets the whole population in their areas of operation. This is because it believes that every person has the ability to be thirsty. The company employs various tactics that are geared towards increasing the affordability of their products (Ferrell, 2011). For the low income market, Coca Cola provides its products in glass bottles that are returnable. For the middle income and high income market, the company products its products in plastic bottles that are not returnable. For the high end market, the company provides its products in tins. The packaging of the product has the ability to influence the price of the product. For example, in all the markets the products packed in glass bottles are cheaper than those packed in plastic bottles or tins. The Coca Cola Company also aims at attracting the youth. This is because they form the bulk of the population, in most countries.
Impact of Culture
The Coca Cola Company takes culture into account whenever it is operating within a country. For example, the management makes sure that all their employees are allowed to take an off during the Sabbath day. However, this depends on the country. For example, persons working in the U.A.E take a day off on Friday and those working in the United States and South Africa take a day off on Sunday. This is because those are their Sabbath days (Davies, 2008). The company also factors in culture, in the development of marketing strategies. For example, their latest advertisement for the United States features a gay couple. This is because the United States is a society that is perceived to be friendly to gay couples. Their advertisement for the U.A.E features ladies wearing hijab. This is because it is the traditional attire for women in this region.
Management Issues
The four main management issues facing The Coca Cola Company as a result of globalization are; culture, taxation, environmental laws, and religion. All these factors influence the manner in which the organization carries out its operations. This is because management has to take all these factors into account whenever they are making key decisions. Culture has the ability to determine whether the company will appeal to its target market. Taxation influences the profitability of the organization (Davies, 2008). Environmental laws determine the kind of practices that are acceptable within a specific state. These laws vary in accordance to the political structures instituted in a country. Religion plays a substantive role in determining the productivity of employees. This is because it is an aspect that is held dearly by the majority.
References
Cola, C. (2014, February 6). Product Portfolio. Retrieved from Coca Cola: http://www.cokecce.com/corporate-responsibility-sustainability/product-portfolio#our-strategy
Davies, A. (2008). The Globalization of Corporate Governance: The Challenge of Clashing Cultures. London: Gower.
Ferrell, O. C. (2011). Marketing Strategy. New York: Cengage.
The Coca Cola Company. (2014, February 6). Our Mission. Retrieved from Coca Cola: http://www.coca-colacompany.com/our-company/mission-vision-values
