Of Thinking Globally and Acting Locally - Essay Example

Running Head: Of Thinking Globally and Acting Locally Of Thinking Globally and Acting Locally by The past years has seen the evolution of a global market facilitated by the rapid integration of economies. The elimination of trade barriers, technological advancement, and the creation of economic and free trade zones has made possible the movement of goods and capital between boundaries and the growth of multinational corporations. As business organizations begin to recognize the opportunities abroad, they've concentrated on the identification of countries to market their products.

In line with this is the discernment on how offerings can be especially tailored to suit the preferences of the individual countries that they serve. Thus, business organizations like Coca-Cola (Coca-Cola) Company take on the challenge of "thinking globally but acting locally." Coca-Cola is currently one of the most recognizable and widely sold commercial brands in the global arena. The company capitalizes on its extensive distribution network comprised of 9 million retailers in more than 200 countries (Klebnikov 2003).

Amidst its being a global brand, what is apparent is the company's innate desire of satisfying each locale according to their needs. This aim of Coca-Cola can be seen its products and promotion strategies. Coke, the flagship brand of the company is marketed worldwide. It should be noted that this product has been warmly accepted by the global market because of its universal taste. Coke has a "universal taste" which discounts the differences in nationality, culture, and traditions. However, the company recognizes that the product portfolio offered in each foreign market should be differentiated as not all product appeal to all consumers.

Thus, Coca-Cola strives to develop a product portfolio which is unique for each market. Quoting the company's annual report:"Consumer demand can vary from one locale to another and can change over time within a single locale. Employing our business strategy, and with special focus on core brands, our Company seeks to build its existing brands and, at the same time, to broaden its historical family of brands, products and services in order to create and satisfy consumer demand locale by locale" (Coca-Cola Annual Report 2005).

An example of this is the Coca-Cola's aggressive marketing of tea beverages in tea-drinking countries like China and Japan. It should be noted that Qoo is only available in China and Nanairo Acha is targeted to the Japanese market only (Coca-Cola 2007). The company's branding and packaging also reflects the company's thrust in acting locally. Coca-Cola often uses the company's alphabet in writing the Coca-Cola in its products. In Israel, the Coca-Cola logo is written in the local language Hebrew.

The company also differentiates the sizes and contour of its bottle in other nations. Coca-Cola's draws strength from its marketing efficiency. It is irrefutable that since its inception, the company was able to create numerous heart-warming advertisements. In the local context, Coca-Cola associates the drink to the cultural and social factors in the foreign market. In the United States, Coca-Cola has been able to identify itself with sports like football and basketball. In Hong Kong, Coca-Cola is drunk in Chinese New Year.

In Europe, Coke is there to celebrate the spirit of Christmas. In the Philippines, Coke enhances strong family ties. With its entry strategy of licensing, the company gets access to a wide network of international retailers (Coca-Cola 2007). Thus, the company is distributed through local retailers. In Thailand, Coca-Cola's products are sold in colorful boats in the floating market. In more technological advanced economies, Coke is distributed in vending machines.References "Coca-Cola Company.

" Coca-Cola Company Website. (2007) Retrieved 4 February 2007 from, http://www.thecoca-colacompany.comKlebnikov, P. (2003). Coke's Sinful World; forbes.com. Retrieved 12 February 2007, from http://www.forbes.com/forbes/2003/1222/086.html.