Analysis of the Coca-Cola Brand

1. Introduction

Coca-Cola is the world’s largest beverage company, producing in excess of 500 non-alcoholic products, with sales in more than 200 countries. As a result Coca-Cola derives 80% of its revenue from outside of the USA (Strategy+Business, 2011). Coca-Cola achieves this through its global network of company owned or controlled bottling and distribution operations as well as independent bottling partners, distributors, wholesalers and retailers (Coca-Cola, 2013). With approximately 1.9 billion of Coca-Colas drinks consumed worldwide every day the Coca-Cola brand and image are not only key to its continued success but central to its global competitive strategy.

Whilst damage to any organisations image or brand is devastating it is particularly so for companies trading internationally (Werther and Chandler, 2005). As a result the organisation has to be acutely aware of the attributes and ever changing nature of the international environment within it operates. This report analyses the political, economic, ethical and cultural context in which Coca-Cola operates as it seeks to expand further into emerging markets.

2. Findings

Organisations take part in international business for a variety of reasons ranging from increasing sales, reducing risk to acquiring resources. Whilst organisations can adopt many strategies when entering foreign markets they need to understanding more than just how to adapt their operations to the local environment. To be successful organisations need to understand the social science aspects, such as the political, economic, anthropologic, social and the phycology, of its operating environment (Daniels et al., 2006).

2.1 Political

Organisations such as Coca-Cola have to operate in many differing ...

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It is easy to see why the Coca-Cola Corporation is so successful. Apart from having a globally instantly recognisable brand image Coca-Cola’s success stems from the way if conducts business internationally and as a result over 80% of its revenue originates outside of the USA.

In the early 2000’s when Coca-Cola’s revenues from its developed markets started to flatten Coca-Cola early entry into key developing markets such as India and China was key decisions which lead Coca-Cola being rank the third best company in the world today. However more recently it is Coca-Cola’s ‘glocal’ approach to emerging markets coupled with a very comprehensive company social responsibility program that is fuelling Coca-Cola’s current success. Although very aware of its international environment Coca-Cola’s track record is not perfect and like many it makes mistakes from time to time.