Table of Contents
To begin with, the Coca Cola Company will be the focus of the analysis in this context and in line with this; several issues about the company will be brought into view in order to carry out a good analysis as well as market research. In connection to this, is a brief background of the company. In particular, Coca Cola Company is one of the leading companies in the world in soft drinks. The company is now the largest soft drink company in the world as a distributor, marketer and manufacturer of the non-alcoholic beverage concentrates and syrups. The company is in operation world wide in over 200 countries that makes it possible for more than one billion servings of the drink being made on daily basis.
Basically, the company was founded in the year 1886 on the fifth month or in simple terms May. The founder of this company was a person known as Dr. John Stith Pemberton who was by then in the Jacob’s Pharmacy in Atlanta, Georgia. From a domestic market point of view, the market having been nearing its saturation, the international markets proved to be the only option. As a result, the Coca Cola Company entered into the international markets and now is world wide known speciality for the brand Coca cola, commonly known as Coke (Harvard Business Review 3).
The form of operations that Coke Company use are quiet exceptional and have made it possible for the company to integrate in the global market. In particular, Coca Cola uses or rather operates a franchised distribution system. This operation can be dated as early as 1889. The operation is carried out by means of producing the syrup concentrate which is then sold to the various bottlers who are distributed world wide and they happen to hold an exclusive territory. In this regard, the bottlers then produce a finished product of Coca cola from the syrup concentrate along with filtered water and sweeteners.
As such, the bottlers then take the responsibility o f selling the finished product to the retail stores, restaurants, food service distributors and vending machines as well. In simple terms, the responsibility of selling, distributing and merchandising the finished product of Coca Cola is left into the hands of the bottlers. The business system in total produces over 3000 beverages in more than 200 countries. As such the Coca Cola Company operates with more than 300 Coca Cola bottlers who make it possible for manufacture and distribution of the products to the customers and consumers world wide. The bottlers happen to be the local companies who are in a position to reach their immediate community as they think and act locally (Wikinvest 1).
According to the history of the Coca Cola Company, the number of employees it has worldwide is about 92,000 employees. The net income of the Company is estimated to be about $5.8 billion with total revenue of $ 31.9 billion. (Datamonitor 31).Having brought into view the brief background of the coca Cola company, it is important to analyse the operations of the company and what has constituted to its thriving in the international market. In line with this, the methodology to be employed in order to compile the research report will be the use of a total of five sources. They will be a combination of at least one academic journal, two quality Web sources and two other popular business sources.As such they will be given as works cited at the end of the report.
Research Findings and Discussions
From this point of view, is essential to bring into view the research findings as well as the discussion along with the analysis of the Coca Cola Company. As earlier on highlighted in the introduction, the domestic market of Coca Cola nearly got saturated and as a result, the company resolved to venture in the global or rather international market. The main motive of expanding into global or international market was to ensure that it remained to be the best in the world without having declines as the world largest soft drink manufacturer, distributor and seller (Wikinvest 1). The expansion of the Coca Cola Company to the international market would give the company the market advantage and increased sales of the products thus remaining competent in the world’s fast growing market. Getting customers of one’s product and retaining them is a hard task speciality in the modern times when there is a lot of competition especially in the market place.
Taking the case of the Coca cola company, it has done so well in international market as it is a well known and has continued to serve the world. The Global strategy of Coca Cola Company has been a franchised one. In the same line of thought, the company has managed to integrate and thrive in the global market as a result of its viable strategy. The strategy operates by means of the Coca Cola Company being able to produce the syrup concentration of which they then pass it to the bottlers (Wikinvest 1).
These bottlers are distributed in over 200 countries in the world in elite territories whereby they serve the communities by thinking locally and acting in the same capacity. The bottlers are over 300 local companies who finish the coca Coal product, bottle and can it, then sell, distribute merchandise it to the retail stores, vending machines and such like outlets that sell to the consumers.
Considering the case in China, Coca Cola Company has been able to establish a strong market through its franchising strategy which provided that one should think as well as act locally. In this sense, in collaboration with its bottling partner, COFCO Coca-Cola Beverages Ltd., Coca Cola Company established two bottling plants in China. These were opened in the less developed area of central china and the western China. This made it possible to reach the local community by ensuring that the drink is produced and sold locally through the operation form of franchise. The company has had long term strategies of marketing in China that has been necessitated by the localized production and infrastructure building through partnerships with the Chinese government. Moreover, it has involved domestic companies and subsequently, it has led to national operations as well as generation of strong market in China. Focusing on the welfare of the coca cola company investments in china, it is worth while as at the same time it has given room for more employees estimated to be 14,000 being employed by Coca cola and in turn, they employ other 400,000 employees. This is a strategy that has made it possible for Coca Cola Company to penetrate in the international market and thus, in the china region it worked out (Fortune 1).
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Despite the fact that the Coca cola Company has been able to integrate in the international market as well as blossom, there has been some challenges, obstacles and setbacks to globalization efforts. Such like challenges and obstructions involve the negative publicity, poor communication and continuity of workforce. In spite of the Coke reputation in terms of its continued reputation and product expansion, the flagship product best known as Coca Cola Classic, has tainted the reputation by the mere fact that it has been pointed out as to contain high levels of sugar and caffeine as well. This has led to public concern since it has negative health effects and again cases of obesity are on the increase.
As such, this may reduce the consumption of the Coca Cola products and thus it stands out to be a challenge. In order to overcome this setback, the Company has to produce healthier alternative to the carbonated drinks especially in schools whereby obesity cases are on the increase and the lawyers have threatened to go to court on this matter (Datamonitor 31). Secondly, another challenge to the globalization efforts of Coca Cola Company is the fact that cases of poor communication between all levels has been reported. Some of the workers describe this setback best as disorganization. This is to suggest that the exchange of the information between the superiors and the employees in relation to solving and fixing problems is ineffective. This is a factor that can easily hinder the globalization efforts.
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Thirdly, there has been a problem in maintaining the workforce. Maintenance of workforce makes it possible for such like a company to meet the main goals of the company, run smoothly in a positive direction and accomplish as well as set new goals that can be easily met. If the maintenance of workforce is neglected, the outcome may lead to loss of momentum together with time wasting of which it would have otherwise have been avoided. This has been the case for the Coca Cola Company; the employees complain and have been complaining of poor salaries of which this can lead to high discontinuity of workforce (Datamonitor 31)
There have been other challenges to the Coca Cola company in its globalization efforts. They involve a competitive market with a variety of products, the marketing strategy and the advent of technology and innovation. In order to overcome the challenges that are market related as well as product related, Coca Cola company has maintained an excellent marketing communication in the sense that the advertisements made by Coca Cola are associated with good times whereby the refreshments are required. In order to overcome threats from the lawyers concerning the sugary carbonated drinks leading to obesity among school children, the Company has resolved to making of other alternatives and as such, it has kept with globalization by ensuring that even at the changing of the market, it is able to provide a solution that fits the market demand.
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Conclusion and Recommendations
Generally, it is essential to point out that Coca Cola is one of the world’s leading soft drink manufacturer, distributer and seller. Despite the challenges faced just as highlighted, the marketing strategy and forms of operations have made it to remain as an exceptional seller in the market even at the challenge of diverse cultures (Taylor 277).So to speak, in order for it to maintain the success in the international level, it has invested in marketing campaigns through advertisements, the ability to innovate and adapt to changing markets and finally the innovation and technology that has made it possible for it to integrate in the global market. Along with the mentioned factors to success, franchising strategy has really worked for Coca Cola Company.
Nonetheless, much needs to be done in order to maintain the workforce, improve on the area of communication in all levels and change the negative publicity caused by the Coca Cola Classic product. This will as a consequence help Coca Cola Company to succeed and flourish in the modern world and sell exceptionally carrying a wide range of market.