Coca Cola Internationalisation

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RMIT UNIVERSITY School of Management Semester 1, 2014 Course: International Business (BUSM1222) Lecturer: Dr. Natt Pimpa The Coca-Cola Company’s Internationalization in China By Ivi Suryana Junior Student ID no. 3464353 Bachelor of Business (International Business), First Semester S3464353@student.rmit.edu.au 1. The Coca Cola Company Overview The Coca-Cola Company is an American multinational beverage corporation that was established on September 5, 1919. The company owns up to 500 nonalcoholic beverage brands, consisting of sparkling beverages and a variety of still beverages, and markets it to all five segments namely North America, Latin…show more content…
In theory, the company’s “Glocal” strategy is actually the Transnational Strategy, in which the company adapting the strategy aims for the benefits of global efficiency while enjoying local responsiveness. 2.1. Coca-Cola’s Product Localization and Cost Reduction Efforts As a company that applies a transnational strategy, Coca-Cola has put some effort to localize their products and to reduce the costs of all their manufacturing and business processes in order to maintain a competitive edge among local Chinese companies and even other Multinational Corporations. Having the products being bottled and manufactured within China, Coca-Cola takes advantage of a vast supply of low-cost workers and a foothold in a rapidly growing region with long-term growth potential (Fish 2010). One of the many products owned by the Coca-Cola Company, the Minute Maid Pulpy, was the first product that was fully developed and launched in an emerging market; the Chinese market. On 2005, the product was launched nation wide in China and is now included in the title of top juice drink brands in 18 geographic regions, including Indonesia, Thailand, India, Taiwan, and the Philippines. The scalability of the Pulpy brand in developing markets is critical to the company’s global juice business. Joseph Tripodi, the Chief Marketing and Commercial Leadership Officer, says “The development in China of the Pulpy brand is a testament to the ability of our
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