Currently, Coca Cola faces competition from other soft drink producers that is not all that substantial but the threat from substitute products is growing. These are only but a few o the challenges that the company may have to face – both now and in the future. The soft drink industry may be strong for now but this does not mean the consumers will remain marred to it. Coca Cola should pursue a strategy that will reduce the overall cost of its products. This strategy will give Coca Cola a much competitive advantage over its rivals who have already adapted methods of lowering the cost of their products. This is one of the many recommendations that the company should adopt if it has to enjoy continued success in the international market.
International Business is the terminology that generally describes the business activities that occur across the boundaries of countries for both profit making and political reasons (Daniels & Radebaugh, 2007). This article will explore one such company doing business internationally namely the Coca Cola company, and identify a few significant issues related to its international operations.
Coca Cola, which is the symbolic American soda company, is among the companies that have operated internationally for a lengthy time period, having first gone international in the year 1902. It is currently a market leader in terms of soft drinks sales worldwide given that its products sell up to one and a half billion servings on a daily basis. The company can also boast of having the world’s largest production, distribution and marketing system of syrup and non-alcoholic beverage which is in fact double in size of its nearest competitor.
For numerous reasons, the Coca Cola Company holds the belief that it will maintain its international growth. Among these reasons are its rising disposable income and the global