Economic Aspects of Coca Cola

Owing to his declaration, the company could get all the sugar as it wanted as well as it got a permission to set up 64 its bottling plants across the world during the war. After the war, the company was known globally. Nowadays, it has the biggest share in the market of soft drink and over its 16000 beverages are consume every single seconds around the world. Coca Cola & its globalization Coca cola started its international expansion in the 1900’s. Robert woodruff who was a long time leader of the company initiated the push to establish bottling operations outside the U.

S plants. Therefore plants were opened in France, Mexico, Belgium, Italy, Peru, Spain, and Australia & South Africa. By the time the World War II began, Coca cola was being bottled in 44 countries. The major reason for globalization was, firstly coca cola could access to different goods, in terms of material required to make the final product, from different countries. Secondly, expansion to other countries helped the company to increase their profits by almost 70% and today coca cola is the worlds most recognized company.

Thirdly, as competition increased due to global expansion the demand also increased. Consumers started becoming aware of the different brands of drinks available in the market. International expansion also led to the economic growth in terms of improvement in productivity and producing more goods and services. It also created more jobs in other countries and helps in reducing monopoly and initiates trade which becomes beneficial for developing countries. Coca cola’s innovating marketing strategies creates an impact on the consumers and therefore it is he company’s duty to fulfill the demand and stay ahead of competition. Since coca cola globalize, the advantages that the other party’s such as the bottlers have are, firstly, as the company keeps innovating new products and promoting their brands through developing various ad campaigns, the demand for their product increases which means more bottles of coke are being sold and that is an advantage for the bottlers. Secondly, Coca Cola Company takes strict measures in quality control; therefore the bottling company does not have to look into that matter.

Lastly, all the bottling company that work under coca cola can gain advantage from each other in terms of knowledge, innovation, efficiency etc because they are not in competition with each other. The Coca Cola system With its headquarters in Atlanta, around 1200 bottlers, hundreds of suppliers, 140000 company associates, Coca Cola definitely is a network like no other. To have this unique network work they have come up with a unique working system that they call the Coca Cola system.

The Coca-Cola Company and more than 300 worldwide bottling partners work together as the Coca-Cola system to deliver daily refreshment and drive their global success. Ranging from small family-owned businesses to large international publicly traded companies, Coca Cola’s bottlers produce, package, distribute and merchandise their products worldwide. Made up of grocery stores, restaurants and mass merchandisers — among others — their customers sell our products to consumers in local communities around the globe. Made up of shoppers like us the world over, their consumers enjoy 1. billion servings of Coca-Cola products daily. Now that’s one big, happy, totally refreshed family. Competition Its most important competitor is PepsiCo which is on the second place of soft drink market share. Despite Coca-Cola is still leading PepsiCo in the market share, PepsiCo is leading in Chinese and Indian markets which are the fast growth potential markets. Moreover, because of the change in soft drink market which is an increase of the demand in variety of soft drink, the company has to widen its product line in order to provide the need of the consumer.

Also the ingredients of coca cola were found to have pesticides in it by the research centers in India. As a result steps were taken to ensure that the ingredients were well monitored and gone through quality tests before sending the products into the market and also the company joint with the Indian government to carry out practices to increase water available for irrigation purposes. They also will ensure that more that almost 900 bottling plants to assess the vulnerabilities of the quality and quantity of water resources for both the plant and surrounding communities and implement a Source Water Protection Plan by 2013.

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