Business globalization refers to a company's undertaking of sales and assets across international borders and the resulting flow of capital, goods, services, and labor. Coca-Cola is a good example of a company that has successfully cultivated its international business, with more than 70 percent of its income originating from non-U.S. sources. The various tactics that Coca-Coca uses to achieve this include developing a global consumer market, establishing transnational corporations to reduce production costs, product branding and positioning, competition-based pricing, and more. 'Over the past two decades, the push for globalisation has had a significant impact on how businesses are managed.' With reference to a global business you have studied, analyse the drivers of globalisation, and how the business has developed its marketing strategies in response to the push for globalisation. Executive summary
In the business report will outline the drivers of globalization. In particular, the report will focus on Coca-cola Amatil's expansion into global market, examine the actual and potential impacts and how its marketing strategies were develop in response to globalization. Introduction
A business globalization refers to which a business has expand its sales and asset across countries and its involved international flows of capitals, goods, service and labour. Coca-Cola is an American producer and distributor of non-alcoholic beverage. Although Coca-Cola was first created in United State, but it quickly become popular wherever it went. Coca-Cola first international bottle plant opened in 1906 in Canada, Cuba and Panama, soon followed many more. Coca -Cola is clearly recognized in most part of the world. Today, Coca-Cola produced nearly 400 brands over 200 countries. More than 70 percent of income comes from outside US.
Drivers of globalization
Development of global consumer market
Since WWII, world taste and demand have merged to global demand for many products. "Coke" is the second most recognized word in English. There has backlash against the forces of globalization, which is often seen as Americanization. However global consumer is continually increasing as products become identifiable, comparatively cheap and higher in quality. Coca-Cola achieves this through successfully established it a global brand by leveraging a strong brand image from an existing product onto new products. For example, Coca-Cola launch a vanilla flavored cola in 2003, they avoided the expense of creating a new brand identity by lending their new soft drink the world's most famous brand name-Coca-Cola. Coca-Cola also achieve its market strategies commenced with market segmentation and differentiation. Market segmentation is the process of dividing the population into groups of customers who share similar characteristic such as age, income, interests or life style. For example, Coca-Cola understands that people with active life style will demand drinks that are high in glucose or caffeine, such as sports drinks or energy drink similarly, Coca-Cola knows that younger consumers prefer sugary drinks such as Cherry Coke. Coca-Cola also uses product differentiation to tailor its soft drink to meet the needs and wants of individual market segments with great precision. Product differentiation has led to the introduction of new soft drink flavors, such as diet coke with lemon, lime vanilla coke and Cherry coke and even coke without caffeine. The new beverages have generally modified existing products to better cater to the tastes of individual market segments. For example, Coca-Cola is a mass-market product that appeals to a variety of different market segments. By contrast, Cherry Coke is a sweeter drink that appeals primary to younger consumers. The...