Foreign Market Entry and Diversification - Research Paper Example

However, the issues that will remain unchanged are the functioning and control techniques including the ability of the institution to have better consumer associations and sales force. Through working upon the plans of foreign market expansion, a Coca-Cola institution may have benefits and be advantageous in many differentiated ways. A product line of particular type established by the organization can aid the enterprise in lowering the threat. It may achieve experience two different technologies, and establish the economies of scale.

It shall satisfy the powerful desire to diversify the brand of the organization into a few extra fields of items, and will aid in achieving the profitable development (Karami, 2007). Diversification strategy Corporate administration’s initial course of action must be an analysis of if any opponent exists for enhancing its present enterprise functioning. The company wants to diversify DASANI, which is bottled water produced by Coca-Cola. The organization initially takes into account if it would achieve greater market share with its present items in their current markets (Neelankavil & Rai, 2009).

This is known as the market penetration plan. After that, the organization takes into account where it can discover or establish new markets for its present commodities. This is the market growth strategy. Lastly, Coca-Cola will assess if it may establish new commodities for new markets. This is termed as the expansion strategy. The markets which Coca-Cola trades its commodities include in the United States and in the home market as well. The company has attained huge prosperity for the past years it has been in operation.

However, the company feels there is a need for further expansion to reap more benefits. The Coca-Cola Company started to establish new commodity which will be used in the diversification process and which is the DASANI bottled water. DASANI at first got satisfaction outcomes when it first entered the United States market and the company hopes the product will repeat the same results when they decide to expand into new markets. Therefore, for the company to diversify its new commodity market and enhance its global competitiveness, it started to expand DASANI into a new market, which is in the United Kingdom.

This expansion will increase the sales volume of DASANI; hence the increase in profitability of the company (Terpstra, Sarathy, & Foley, 2012). Market entry strategies Product positioning strategy This strategy is important for an organization to venture into a new market. The positioning strategy provides the organization with the best alternative to take to place the product, and at what price should it be sold at in the market for consumers to be able to access and buy it. Individuals in the United Kingdom are searching for greater quality water to drink.

This calls for the Coca-Cola organization to commit extra resources to produce a high quality product that fulfills the consumer needs. A greater quality product will call for heavy investment in the production process and this as well calls for the products to reflect the cost of production. The differentiation strategy and the brand management strategy have as well to be applied in the product positioning strategy to achieve better and attractive results. Therefore, for