Table of Content
Section | Content | Page |
1 | Introduction of Coca-Cola Company | 1 |
2 | Current Expansion Strategy | 2-4 |
3 | Future Expansion Strategy | 5-8 |
4 | Conclusion | 9-10 |
5 | Reference | 11-15 |
Section 1: Introduction
Company Coca-Cola has been successfully introducing over 500 famous brands of beverage sold in more than 200 countries. In addition, Coca-Cola is the perfect beverage soft drink for every lifestyle, life scene and life phases in customers’ mind. (History of the CocaCola trucks, 2010). Coca-Cola used touch-screen machine produce numerous categories more than 100 regular and low-calorie beverage brands of multiple taste combinations such as fruit juice and drinks, hydrating sport drinks (Coca-Cola Beverages and Products, n.d.).
We will focus on joint venture and dual-branding as our company global market entry strategies used for market expansions which are in Asia and European countries. Joint venture is more often used by Coca-Cola to expand its business. According to the research, joint venture that used in wrong time and wrong conditions may result to an adverse effect on the overall value of the parent firm (Kogut, 1991; Reuer and Miller, 1997 as cited in Steensma, Barden, Dhanaraj, Lyles and Tihanyi, 2008). Thus, there is the specific risk that will encounter by Coca-Cola Company if adopted joint venture strategy despite enjoying the profits. Thus, we will look at how Coca-Cola is able to address this problem in this assignment. Moreover, regarding to the investment cost of market entry mode, the level of involvement, risk and financial reward rises as a company moves from market entry strategies such as joint venture to acquisition (Modes of Market Entry, 2014)
Joint venture is defined as the corporation between two companies represents a more extensive form of participation in foreign markets than either licensing or exporting. Coca-Cola choose this market entry mode to develop foreign...