This study looks into the entry strategies that the company employs in new markets, especially the strategies that the company used in selecting the Chinese market. According to Wang (2008), coco cola entered the Chinese market in 1979 and ever since has been one of the most trusted brands in China
China is one of the largest economies in the world, with its market dominating in the world market system. Every company would like to have a link with Chinese economy due to various economic factors. Coca cola in this case has used its internationalization approach to thrust its brands into the Chinese market with a characteristic transitional organization that integrated a responsive framework with the global entry strategy. It is important to note that the major strategy that the company used, as described by Wang (2008), is that achieving high expansion using the economies of scale principle and adopting to the needs of the Chinese. In the end of every marketing program, the company is known to establish an independently owned foreign subsidiary.
One of the major experiences of the company in China is that, as stated by Piercy (2009), at some point, the transaction costs of executing, enforcing and writing contracts in a foreign country through the market may be higher than the cost of internationalizing the market. In this case, therefore, the company has opted to use its internationalization approach to expand its product niches to the extreme regions of Chinese market. Based on the company’s long history in China, the company has experienced myriad competition from like-companies in the highly versatile Chinese local market environment (Wang, 2008). The company has gained many experiences and marketing ability that does exceeds external circumstances hence its survival in the Chinese market thereby capturing the largest beverage market share among the multinational