coca-cola

Coca-Cola

 The Coca-Cola company, founded in1886, is the world leading manufacturer, marketer and distributor of non-alcoholic beverage. It currently operates in 200 countries worldwide and is most famous for the innovative soft drink. Its headquarters are in Atlanta, Georgia. Its subsidiaries employ nearly 30.000 people around the world. 70% of the company volume and 80% of the company profit come from outside the United States. It is one of the most visible companies in the world. Their Coca-cola product is now available all over the world and has resulted in the drink becoming the world's favorite soft drink.

The former chairman of Coca-cola company, Douglas Ivester, has stated that being global, is the main strength of Coca-cola company. It is business with a popular affordable product, with a strong foothold in many countries.

As an effort to become a global company, Coca-cola entered China in 1920s. The company has experienced three main stages during its time in china.

1.  Primary Stage: At the beginning, China's policy had many restrictions on foreign companies. Therefore, Coca-cola chose to work with a big food company in China. After two years, it decided to fully enter China drinks market by investing in some factories. By using this tactic, the company gained a competitive advantage over many domestic producers due to its scale and financing abilities.
2. Rapid Expansion Stage: China cancelled the import quotas of soft drinks in 1992 and cancelled license requirements in1996. Coca-cola did not waste any time to take advantage of this opportunity. It built 10 factories in China in less than 5 years after 1992, spending about US $301 million in the process. Then the company invested another US $150 million to build 6 factories in northwestern China in 2001. There was no doubt that it was becoming one of the biggest foreign drink brands in china.
3.  Full Range of Expansion: After over 20 years of development, the drink industry is flourishing in China's growing market. Unfortunately for Coca-cola, the popularity of soft drinks is decreasing. Since 1996, coca cola company began fraying away its main product of soft drinks and began producing different drinks.
   

The international brand, coca-cola, entries the third biggest country in the world- China. Therefore, coca-cola is one of the earliest US company entries Chinese market in 1927. As Chinese people has a history of drinking tea, it is a type of culture for Chinese people. For this type of culture, coca-cola made some unique method to develop a product. They also follow some mind blowing strategies in case of pricing, promotion and distribution for that certain product.