Review of Coca-Cola Company - Essay Example

? Review of Coca-Cola Company Review of Coca-Cola Company The Coca-Cola company makes one of the most interesting case studies of multinationals. It is associated with strong growth points in most of the markets where the company operates. In some markets, it is so dormant that competitors often feel threatened and have to put in extra effort especially while introducing new products. Its dominance may be seen through perspectives such as advertising and the overall marketing strategies. In most of its markets, the beverage manufacturer ensures that there are commercials running through various media as a strategy of ensuring that consumers are constantly aware of its products. This paper looks at these aspects and how they have helped the company in its overall growth strategy. Growth and Performance over the last decade. According to most of its financial reports, the company has continued to post admirable growth percentages in an increasing scale. In January 2000 the company underwent a major organizational realignment aimed at reducing the workforce around the world. This move was aimed at reducing or transferring responsibilities from various headquarters to smaller and ostensibly more revenue-generating operating units (Cohen, 2003). This move was also expected to streamline corporate resources. As a result, about 6000 thousand employees worldwide would be eliminated where 3,300 of these were in the United States. This process was to take place in the calendar year of 2000. In 2001 financial report, the company reported. that the net profit had been transformed from loss of ?122 million in 1999 to record a profit of ?1.6 million in 2001. This turnaround was attributed to management actions that were seen to bring about profitable volume growth and improving on economic conditions in emerging markets. One conspicuous development of the company is the introduction of 450 products in 2007 alone. These products gave the company an enlarge its portfolio hence giving the consumers a wide range to choose from .The Coca-Cola Zero brand is one of the additional that is making a great difference for the company. Key Factors Enhancing Development Innovation is one of the most important aspects that have seen the company improve in its growth exponentially. The company has greatly utilized the social media to its advantage especially for marketing purposes. This has been specifically demonstrated through aggressive market presence through advertising. In 2010 the company was actively involved in the sponsorship of the world cup. This saw the company collaborate with renowned artistes such as the Somalian hip hop artiste K’NAAN who recorded an uplifting African-inspire track. This track was greatly used in commercials ran during the matches and was largely viewed online. The company further collaborated with You –Tube in what is was seen as one of the greatest collaborations of the social media in a partnership that saw the Long Celebration, a campaign in which fans could view videos submitted by users from over 100 countries. Organizations continue to take advantage of globalization to influence the way they undertake their business. This has greatly favoured the Coca Cola company which has been able to expand into all various regions through various partnership programs. In 2004 Coca-Cola had a 25% world wide case volume in Latin America, 29% in North America, 22% in Europe, Eurasia and Middle East,6% in Africa and 18% in Asia. The company’s has been strengthened by the strategy to operate in local environments by catering for its requirements as they occur in individual countries. This company does this by working with merchandisers from the specific countries. For instance, the company sources bottlers in specific nations to work with. Report on Opportunities for Market Entry In recent times, Coca-Cola has seen great potential in the Indian market. This has been aggravated by an analysis which indicated that on average the Indian people consume only 12 eight-ounce bottles of Coke a year compared with 230 in Brazil and 92 bottles globally. This has seen the company choose to invest f $5 billion by 2020. The company has in the last two decades injected $2 billion into its Indian operations. This money will specifically be concentrated on increasing capacity at its Indian bottling unit and at its 13 bottling franchisees thereby expanding distribution and brand building. From an analytical perspective, this can be seen as a critical move that would ensure expansion over time. Although this is not an entirely new market, one of the key factors that the company has looked into while seeking to undertake this ambitious project is the population of the nation in relation to the current consumption of beverages in the country. In such an analysis there is a great aspect of Market Intelligence that has been utilized to consider this ambition. The history of the company with India is interesting in a way. The company left the country in the late 1970s after declining to go into partnership with an Indian company, only to return in 1993 after India liberalized its economy. It is also important to note that the company has to counter a certain degree of completion especially from its long time rival the Pepsi. One study demonstrated that Pepsi had a 15% market share compared to Coke's 8.8%. Business Environment Analysis Report. One of the aspects that places India as an attractive market is its population. The country has a population of about 1.2 billion people thus presenting any product with a potential market. The most critical aspect of this phenomenon is how any organization intends to tap this market (Horowitz, 2005). The Indian market has undergone a number of transformations that continue to make it attractive to investor. The high population has two advantages that make it an attractive market for investors. To start with , it ensures and immediate market for any products. Secondly it provides a highly qualified workforce. The government has supported foreign investors by improving the country’s investment policy. In 2011 the government came up with a police allowing big foreign retailers ,foreign broadcasters and foreign airlines to invest in the country, among other reforms with the aim of attracting investment, creating local manufacturing and employment. Such a policy becomes a very strong tool in trying to open up the country to foreign investment, thus Coca-Cola can take advantage of this policy in as part of its expansion plans. The potential presented by the India economy is gives any investor the confidence and optimism necessary to risk considering it in a investment destination. It is the third largest economy in the world righty after China and the U.S.A. India’s economy is considered one of the fastest growing in the world facilitated by factors such as the huge population . There is also another advantage in that the country accounts for about 10% of all expenditure on research and development in Asia (Gurcharan , 2006). This ensures that country is technologically advancing at a good rate, thus making it a suitable investment hub. With an advantage such as the nuclear power, the nation has a gives great prospects (KPMG, 2005). The industry has grown from US$4 billion in 1998 to more than US$80 billion in 2011. References Cohen, L., 2003 A Consumers’ Republic: The Politics of Mass Consumption in Postwar America. Vintage, 2003. Coca –Cola News Release, 2010, The Coca-Cola Company Reports 2010[online] Available at: www.coca-cola.com/en/index.html-2010 Accessed 24th Nov 2012 Gurcharan D., 2006, The Rise of India: Unshackling the economy, Fortune, 2006 Horowitz, D., 2005. Anxieties of Affluence: Critiques of American Consumer Culture . University of Massachusetts Press. KPMG International ,2005 Consumer Markets in India-The Next Big Thing? Read More