Question

Please talk about The Coca-Cola Company. Identify one example of The Coca-Cola Company's successful expansion into emerging economies. What positive and negative characteristics did The Coca-Cola Company's managers associate with the emerging economy that are important considerations for their foreign investment plans in the country?

Please cite sources used (if any)

Answer 1

A Thumbs Up! Would be really helpful for me. If you have any questions, please leave a comment and I will get back to you as soon as possible.

Here, I'm giving India as an example of Coca-Cola company's successful expansion into emerging economies:

Beverages offered by the Coca-Cola company are very popular and preferred in Indian markets. One main reason for its successful expansion in India is its diversification. Coca-Cola offers many flavors with different brand names and flavors in India, as a result of which its revenue during the summer season- the quarter of April to June is always high and increasing perpetually. Coca-Cola also localized its flavors according to the taste and preferences of its target market in India.

Now, the brand is looking forward to making India as its third-largest market.

Positive characteristics of Coca-Cola that are important considerations for foreign investment plans in the country:

1. Brand value: The company has earned and gained brand value, or goodwill and reputation as one of the biggest brands of beverages in the global market. This would help in easily capturing foreign markets.

2. Customer satisfaction: Coca-Cola has inhabited a good level of customer satisfaction from its local markets as well as its markets at the global level, and this would also help in making a better foreign investment plan

3. Large market share: Coca-Cola has the largest Market share among all of its competitors because of a variety of sub-brands the companies providing with different flavors for beverages.

Negative characteristics:

1. No focus on health attribute: it is seen that Coca-Cola does not focus on health, and with the passage of time, all the countries- including the emerging ones, I am becoming health conscious. So, there are chances that the company might lose its market share if it does not focus on the health of the people.

2. Competitors: As we all know, Coca-Cola has Pepsi as its biggest competitor. This also impacts foreign investment planning for the company.

References:

Article name: Coca-Cola plans to make India it'ss third-largest market.

Article by: Trefis Team and Great Speculation Group.