Globalization Coca Cola

Only available on StudyMode
  • Download(s) : 738
  • Published : November 15, 2012
Open Document
Text Preview
Page 3.
Globalization describes the proliferate synthesis of the world’s economic, political, technological and socio-cultural systems through the liberalization of international trade and investment or the reduction of barriers to international trade such as tariffs, import quotas and other related import and export restrictions. Globalization has allowed a greater establishment of goods, services, wealth and society development throughout the world, however, its implications such as the unequal distributions of income and employment opportunities due to outsourcing methods to derive relative unit labour costs and the constant company and government power struggles is becoming an increasing cause for concern. Nevertheless, companies continue to expand and develop and take advantage of globalization, which is considered to be an historic trend and an inevitable evolution process. The Coca Cola Company is a prominent, American Multinational beverage company that constitutes its own product manufacturing, distributing and marketing efforts in over 200 countries worldwide. The company that is best known for its bellwether beverage, Coca Cola, was established as The Coca Cola Company in 1889 by Asa Candler and has presently, collaborated with approximately 300 bottling partners throughout the world. It offers 500 brands of products including of diet beverages, sports drinks, teas coffees and juices. Coca Cola is considered to be one of the biggest brands in the world and the company, one of the world’s first global companies. The influence and impact of globalization on The Coca Cola Company was crucial for the company’s success as statistics prove that presently, 70 percent of the company’s income is propagated through non local operating territories. As a consequence of globalization, the Coca Company has capitalized on many opportunities and experienced many backlashes. When the Coca Cola syrup was created by pharmacist, John Pemberton in 1886, citizens of the United States were delighted and enthusiastic by the new product that was distributed from a cola fountain. As the demand for the product grew John sold the exclusive rights for the product to salesman, Asa Griggs Candler, who began developing the product as a brand. Asa Candler began to introduce Coca Cola throughout the United States by developing marketing strategies such as offering coupons and merchandise with the Coca Cola logo. This strategy soon made coca cola to be available and consumed in every state of the United States. Subsequently, because of the exceedingly increasing demand for the beverage new measures had to be established to distribute the product to reach all their customers. In the year 1894 coca cola was put into bottles that allowed the product portability. Large scale bottle manufacturing activities was then initiated after statistics had proven that the bottled coca cola sales surpassed the fountain sales. The new bottling innovation along with continuous marketing strategies took the company to the global stage and the coca cola beverage was now bottled in Cuba, Panama and Canada. The exclusive right to sell the product was then sold to lawyers, Benjamin F. Thomas and Joseph B. Whitehead whom had to please their exceedingly expanding consumer base as the company was now an international company. Globalization of Coca Cola’s operations allowed the organization to serve a greater variety of consumers that contributed to a great increase in demand however it also affected the company negatively as it also spurred competition. Joseph and Benjamin began implementing and delegating new methods to safeguard their product such as advertising to consumers to demand the authentic coca cola and to refuse substitutes. They also gave the coca cola beverage a new feature, they distributed the beverage in a contour glass bottle that can be recognized anywhere by consumers and this advancement brought new life to the company. The new design allowed the...
tracking img