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Coca Cola Case Study

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Introduction

Coca-Cola Case Study a) Although a US based business, Cocoa presence throughout the world makes it very comfortably into the category of multinational It has most if not all the characteristic that might be expected of a multinational business. For example, have production and distribution facilities in most countries worldwide. It has relationships, such as franchises, throughout the world. It takes a global strategy to its marketing, aiming to replace consumption of water with coca cola. It has 50 percent plus share of the world market for soft drinks, making it the worlds most recognisable and successful brand. b) There sis a number of benefits to coca cola of operating globally: First, by producing and marketing its products globally Coca-Cola is able to increase its sales and make greater profits. It can sell in a variety of countries rather than just one or two single markets. ...read more.

Middle

Anchor bottlers, fort example had the management and resources to match the growth targets of the economy. The principle threat for Coca-Cola arising from the globalisation of the world economy ids competition from other drinks manufacturers. It is possible that the hypercompetitive state of many global markets may create future difficulties for Coca-Cola. For example, drinks companies in the Newly Industrialised countries (NICs) may emerge in the 21st century as a threat to Coca-Cola. In addition just as Coca-Cola has benefited from a convergence of consumer tastes which have accompanied globalisation and which has resulted in consumers all over the world drinking its products, so it may suffer from a shift in global drink tastes away from cola drinks, which form the core of Coca-Cola's business. Furthermore there is also evidence in the article which suggests that a global approach is not always effective. Despite producing one of the world's most famous advertisements, it did not sell much of the product. ...read more.

Conclusion

Furthermore there is also evidence in the article which suggests that a global approach is not always effective. Despite producing one of the world's most famous advertisements, it did not sell much of the product. The business changed strategy as a result away from single theme advertising, to take into account the nature into which the company is selling. Lastly, a global approach requires massive investment and expenditure. If the world economy is in recession which particularly affects the USA and other countries buying Coca-Cola products, then the business may be greatly affected. Furthermore there is also evidence in the article which suggests that a global approach is not always effective. Despite producing one of the world's most famous advertisements, it did not sell much of the product. The business changed strategy as a result away from single theme advertising, to take into account the nature into which the company is selling. Lastly, a global approach requires massive investment and expenditure. If the world economy is in recession which particularly affects the USA and other countries buying Coca-Cola products, then the business may be greatly affected. ...read more.

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