Question

As part of the internationalization process, when did The Coca-Cola Company first started their licensing in China? What were the FSAs or CSAs the company used to help with licensing in China?

Answer 1

answer-

In 1978 Coca-Cola became the only company allowed to sell cold packaged beverages in the People’s Republic of China.

On Dec, 1978,Both Coca Cola company and Chinese governent signed agreement to ship and sell its drink in China. This was meant to sell Coca Cola to foreigners in China. initially sales were restricted to specially designated outlets, such as hotels and “Friendship” stores in Beijing, Shanghai and Guangzhou. But ordinary Chinese people, who only knew Coca Cola from the movies, also wanted to drink it.

The FSA that used to help with licensing in china is the strong brand image of the company.Coca Cola has strong distribution channel so supplying its drinks was never a issue. In terms of CSA's which lead to licensing is demand of its drink in China. Chinese people seen this drink in american movies and wanted to drink it. This create huge demand for it.Government policies to motivate foreign firms to invest in thier country so that they can be employment opportunity.