Discussion 5- International Strategy Application

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Central Texas College *

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Jan 9, 2024

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1. Which strategy does your company pursue? Company: Coca-Cola Coca-Cola is an international company that pursues a "transnational" strategy. This strategy focuses on global integration and local responsiveness, allowing the company to adapt to different markets while maintaining a cohesive global brand identity (Greer, 2018). Examples: Global Integration: o Coca-Cola maintains consistent branding, packaging, and product quality across its global operations. The iconic Coca-Cola logo and red color are instantly recognizable worldwide. o The company uses standardized manufacturing processes and ingredients to ensure that Coca-Cola products maintain consistent taste and quality regardless of the country in which they are produced. o Coca-Cola uses a global advertising campaign, often featuring popular celebrities, to promote its products and create a unified brand image worldwide. Local Responsiveness: o Coca-Cola tailors its products and marketing strategies to local preferences and cultural differences. For example, the company offers region-specific flavors, such as "Fanta Melon Frosty" in Japan and "Barrilitos" in Mexico. o Coca-Cola partners with local bottling companies and distributors to leverage their knowledge of the local market. This allows the company to adapt its distribution and marketing strategies to meet the specific needs and preferences of consumers in different countries. o The company engages in corporate social responsibility initiatives in various countries, addressing local concerns such as water conservation, recycling, and community development. (2a.) Foreign Market: India

Coca-Cola entered the foreign market of India with its range of beverages, including Coca-Cola, Fanta, Sprite, and Maaza, among others. (2b.)Entry Mode: Joint Venture Coca-Cola initially entered the Indian market through a joint venture with an Indian-based company called Parle (Greer, 2018). This strategic partnership allowed Coca-Cola to leverage Parle's extensive distribution network and local market knowledge. (2c.) Advantages and Drawbacks of the Joint Venture Entry Mode in India Advantages:  Access to Established Distribution Network: The joint venture with Parle gave Coca- Cola immediate access to an established distribution network, enabling rapid penetration into the Indian market. This saved the company the time and resources required to build its distribution infrastructure from scratch (Stott, 2022).  Local Market Knowledge: By partnering with Parle, Coca-Cola gained valuable insights into the Indian market, including consumer preferences, cultural nuances, and regulatory requirements. This knowledge facilitated the adaptation of the company's products and marketing strategies to suit the Indian market (Stott, 2022).  Reduced Risk: Sharing the risks and costs with a local partner like Parle helped Coca- Cola mitigate potential challenges and uncertainties associated with entering a new market. The joint venture allowed for shared resources, expertise, and financial responsibilities (Stott, 2022). Drawbacks:  Limited Control (Profitability): Engaging in a joint venture meant that Coca-Cola had to share decision-making authority with its Indian partner. This limited the company's control over strategic decisions, including product development, marketing campaigns, and distribution strategies (Morris & Oldroyd, 2020, p. 249).

 Potential Conflict of Interest (Goals): Differences in business priorities and strategic objectives between Coca-Cola and its Indian partner could lead to conflicts that might hinder decision-making and compromise the effectiveness of the joint venture (Morris & Oldroyd, 2020, p. 249).  Strategic Brand Identity Alignment : Ensuring consistent brand messaging and maintaining the integrity of the Coca-Cola brand may have been challenging in a joint venture, as both Coca-Cola and Parle had their own established brand identities in the Indian market (Morris & Oldroyd, 2020, p. 249). References Greer, G. (2018, May). Win in India: An Analysis of Market Entry Strategy Into India's Food and Beverage Industry . ScholarWorks@UARK. https://scholarworks.uark.edu/cgi/viewcontent.cgi? referer=&httpsredir=1&article=1038&context=finnuht Morris, S., & Oldroyd, J. (2020). International business, Wiley PLUS NextGen card with Loose- leaf set single semester (2nd ed.). Wiley. Stott, A. (2022). Partnerships And Joint Ventures: How Can They Benefit Your Business? Forbes. https://www.forbes.com/sites/forbescoachescouncil/2022/09/29/partne rships-and-joint-ventures-how-can-they-benefit-your-business/?sh=220b65cf6828

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