Coca Cola has pursued several corporate strategies including related diversification through acquisitions in Africa and India, vertical integration through bottling acquisitions, and retrechment by returning to classic Coke. Globally, Coca Cola follows a plan global, act local approach through localized marketing and product sizes. Recommendations include balancing globalization and localization, maintaining market leadership, investing in healthy options, and seeking cleaner water sources.
3. Related Diversification
• 1) Acquired initial
minority equity
shareholding in Chi Ltd.
a Nigeria based leading
dairy and juice
company in Africa.
• 2) Launched its
flavored milk
brand Vio in
India
4. Vertical Integration
2006
● Form the Bottling Investments
operating group, now the
second-largest bottling partner
2011
2007
● Acquire the network of
independent bottlers that
handled distribution in local
markets
● Acquire Coca-cola
Enterprises, and renamed
Coca-cola Refreshments
5. cRetrechment
★ Coca Cola went back to
Classic Coke after introducing
“New Coke” in the 80’s.
“deep and abiding emotional attachment to
original Coca-Cola felt by so many people.”
★ Coca Cola Singapore
Beverages close
manufacturing operations at
its bottling plant in Tuas.
6. Global Strategies
Plan global, act local
Marketing Side
Advertisement
campaign where
elements of local
culture are
included.
Multidomestic
Product Side
Coke bottles and
cans include the
target countries
native language and
are sized to match
up to other
beverage bottles or
cans in that country
7. Global trends - Financially
Problem: Fluctuations in foreign currency
exchange rates have a material adverse
effect on coca cola’s financial results.
Solution: They plan on using derivative financial
instruments to further reduce our net exposure
to foreign currency exchange rate fluctuations
8. Global trends - Strategically
More consumer centric brand strategy with more
concentration on younger demographic.
Improvising marketing strategies I.e by attuning to
more digital and social technology.
9. Recommendations
Balance Globalization with
localisation- marketing campaigns
attuned to local culture and consumer
tastes.
Maintain the market leader position-
Sustain the current marketing spending
and providing memory cues to keep the
brand awareness and brand salience
high.
10. Recommendations
Health issues - Investing more
marketing budget in healthy
beverages like juices, water
and energy drinks.
Water issue- for seeking more
cleaner source of supply, Coca
Cola could build production
plants near rivers.
11. Reference
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level-and-corporate-strategies-99780
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Retrieved April 18, 2017, from http://time.com/3950205/new-coke-history-america/
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https://prezi.com/avkek07jiboy/coca-colas-vertical-integration/?webgl=0
4. Moye, J. (2016, August 24). 3 Trends Shaping the Global Retail Industry. Retrieved April 20, 2017,
from http://www.coca-colacompany.com/stories/3-trends-shaping-the-global-retail-industry
5. Ramchandani, N. (2015, October 5). Coca-Cola Singapore Beverages to shut Tuas plant; commits
US$100m investment. Retrieved April 18, 2017, from http://www.businesstimes.com.sg/companies-
markets/coca-cola-singapore-beverages-to-shut-tuas-plant-commits-us100m-investment
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https://www.forbes.com/sites/greatspeculations/2016/02/25/how-coca-cola-is-continuing-its-portfolio-
diversification-strategy/#3dda3a6d2adf
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essay.php