Global Case Report

8/2/2019 Global Case Report

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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.svg


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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_symbol


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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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