Question

Explain Coca-cola diversification and strategic alliances through Build-Borrow-or-Buy Framework.

Answer 1

Diversity means that the variety of the products and services offered by the company across borders and in their own country for growth and competition whereas the Strategic alliances is the process to share the diversity of product, knowledge, resources etc. among business through either collaboration, merging or in any way. - voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products or services

Most of the firm’s growth strategies focus on either of the type of growth or on all such are:

1. BUILD: Internal building of the business. (organic growth)
2. BORROW: obtained the targeted resources from the other resource partner (Alliances)
3. BUY: needed broad and deep relations and take majority control. (Merger or Acquisition)

The Coca cola alliances were with InterContinental Hotels Group -IHG (Hotel brands), Endomondo (social fitness community), unique permanent alliance of international NGOs with expertise in water supply, hygiene education and promotion of sanitation, Nestlé Company, Switzerland, and Coca Cola Company have a joint venture since 1991, McDonald's and Coca Cola have a strong alliance based on trust for more than 60 years, Coca Cola products are being sold in 31,000 restaurants over 100 countries.

The company first developed their business across the word which means that they did the internal building of the business then later company focusses on above mentioned strategic alliance which shows that they work with the collaboration as they need resource partner. The company works with above partners and shares their resources with the alliance partner. The company then buy the small companies to have control over them so that their product growth would be enhanced.