coco cola case study

1. Submitted by kalakota yaswanth reddy

2. INTRODUCTION
Headquarters - ATLANTA, GEORGIA, UNITED STATES
Type - PUBLIC
Industry - BEVERAGE
Founders - JOHN PEMBERTON [Coca-Cola]
ASA GRIGGS CANDLER [The Coca-Cola Company]
No. of Employees - 123,200

3. SYSTEM & VALUE CHAIN

4. SUSTAINABILITY
REPORT -2016

5. Why did the Coca-Cola Company made Foreign
Direct Investments in Europe?
● European market has great potential, The Coca-Cola Company market share in
europe is low as compared to its competitors.
● It was the period for FORMATION OF EUROPEAN UNION was to take place and it
would lead to NO TARIFF between EU.
Foreign Direct Investments helps the Coca-Cola Company to utilize its manufacturing,
bottle assets and partners to efficiently supply its products to retailers taking into
consideration that it was cheapest and most rapidly available factors.

6. How did Coke improve its factor conditions in
Europe?
● The Construction of new bottling plants helps the company to produce a low-cost
product.
● Marketing expenditures are helping the firm gain the product recognition needed for
growth.
● Direct investments in facilities closer to the market are reducing delivery time and
eliminating import duties.
● Relook at it existing franchise distribution network and realign or replace the same
with more effective and market driven sellers.
LICENSING is the another way to enter a foreign market with a limited degree of risk.

7. How local rivalry helping to improve cokes
competitive advantage?
Europeans are very much pond of hot beverages, like Coffee and Tea rather
than coke and not like Americans this was forced.
Coke revise their marketing strategy and this includes opening up new plants
to reduce the cost of product and price competitive. The new marketing
campaigns pull the customers from competitive brands.
This strategy sends message to local competitors to understand their market is
forcing coke to “Think local and Act local”

8. REFERENCES
http://www.coca-colacompany.com/homepage
https://en.wikipedia.org/wiki/The_Coca-Cola_Company
http://wiki.answers.com/Q/Why_did_coca-
cola_engage_in_foreign_direct_investments_in_Europe#i

9. THANK YOU