Coca Cola Strategy

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Introduction Draft Brand Created in 1886 by an Atlanta Pharmacist by the name of John Pemberton, Coca-Cola was originally intended as a patient medicine. However, with the intent of creating a drink that could be sold at fountains, the syrup was mixed with carbonated water and hence, Coca-Cola was born. The name Coca-Cola derives from the two main ingredients within the drink, kola nuts and coca leaves. Coca-Cola is the most known beverage company in the world with 94% of the world’s population being able to recognize the red and white Coca-Cola logo. Coca-Cola is often associated with happiness and means “delicious happiness” in Mandarin. Another universally recognizable feature of Coca-Cola is its iconic contour shaped bottle. The Coca-Cola…show more content…
On top of the current dry weather, climate change is believed to bring further warming and dryness in the region. This poses a major risk to Coca-Cola’s production as it relies on an extensive supply of water resources in order to bottle its products. For example, it takes roughly three liters of water to produce a one-liter bottle of Coca-Cola. During the droughts, Coca-Cola can be forced to cease bottling operations due to the lack of water. On the other hand, one of the big advantages South Africa provides is that it is located at the southern edge of the continent, bordering the Atlantic and Indian Oceans, which allows for an easier access of goods coming into the country. Cargo ships of various sizes carrying tones of goods from areas such as South America and Asia are able to reach the many ports of South Africa with ease. Specifically, for Coca-Cola, it is able to set up a transportation network from either South America or Asia for continuous shipment of its products to South Africa.…show more content…
Due to this, it is referred to as the “Gateway to Africa” for investors. The domestic currency of South Africa is called Rands. At the current level, one Rand is equivalent to 0.074 U.S. Dollars. The South African economy is the strongest in the continent of Africa, representing almost 30% of African GDP. South Africa is abundant in natural resources which creates ease within its primary industries of agriculture, fishing, and mining. Specifically, for Coca-Cola, South Africa is the 10th largest producer of sugar in the world, which allows for an easier and cheaper access to one of the main ingredients in Coca-Cola products. The secondary industries in Africa are manufacturing, construction and utilities, representing 21% of economic output. The tertiary industries are trade, transport, and services, which contribute 69% of the

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