Competing in International and Domestic Markets
Added on 2023-03-21
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Running head: COMPETING IN INTERNATIONAL AND DOMESTIC MARKETS
COMPETING IN INTERNATIONAL AND DOMESTIC MARKETS
Name of the Student
Name of the University
Author Note
COMPETING IN INTERNATIONAL AND DOMESTIC MARKETS
Name of the Student
Name of the University
Author Note
1COMPETING IN INTERNATIONAL AND DOMESTIC MARKETS
Introduction
Coca Cola is an iconic soda maker organization of American origin and has been able
to gain a major position in the international market. The first internationalization based
movement was made by the organization in the year 1902 when the organization entered
Cuba. A deal was then struck by Coca Cola based on the supply that the company had to
provide to the US military. Currently Coca Cola has its operations in around 200 countries in
the world (Coca-colacompany.com. 2019).
Reasons behind the change in strategy by Roberto Goizueta
Coca Cola had implemented a localization strategy in its international operations
before 1980s. A major change had been implemented in the strategy in the year 1980 under
the leadership of the CEO Roberto Goizueta. The major reasons behind the implementation
of this strategy is based on the lack of proper penetration of the products of Coke in the
international market areas outside the US. This had led to the implementation of centralised
management policy. The importance has been provided to different products like, Cherry
Coke and Diet Coke that were the flagships products of the organization at that time (Allen,
Lee & Reiche, 2015).
The major advantages that were provided to Coke by the global standardization
strategy was based on the increase in levels of control over the international operations of the
organization. The advertisement based costs have also been reduced due to the development
of a single message for the operations in different parts of the world (Alon et al., 2016).
Limitations of the strategy implemented by Goizueta
The strategy that was implemented by Goizueta had started becoming ineffective by
the 1990s. The growth of Coke was halted after the local organizations had started
Introduction
Coca Cola is an iconic soda maker organization of American origin and has been able
to gain a major position in the international market. The first internationalization based
movement was made by the organization in the year 1902 when the organization entered
Cuba. A deal was then struck by Coca Cola based on the supply that the company had to
provide to the US military. Currently Coca Cola has its operations in around 200 countries in
the world (Coca-colacompany.com. 2019).
Reasons behind the change in strategy by Roberto Goizueta
Coca Cola had implemented a localization strategy in its international operations
before 1980s. A major change had been implemented in the strategy in the year 1980 under
the leadership of the CEO Roberto Goizueta. The major reasons behind the implementation
of this strategy is based on the lack of proper penetration of the products of Coke in the
international market areas outside the US. This had led to the implementation of centralised
management policy. The importance has been provided to different products like, Cherry
Coke and Diet Coke that were the flagships products of the organization at that time (Allen,
Lee & Reiche, 2015).
The major advantages that were provided to Coke by the global standardization
strategy was based on the increase in levels of control over the international operations of the
organization. The advertisement based costs have also been reduced due to the development
of a single message for the operations in different parts of the world (Alon et al., 2016).
Limitations of the strategy implemented by Goizueta
The strategy that was implemented by Goizueta had started becoming ineffective by
the 1990s. The growth of Coke was halted after the local organizations had started
2COMPETING IN INTERNATIONAL AND DOMESTIC MARKETS
developing products that are able to fulfil the needs of customers on a local basis. Coke had
failed to reach the financial targets that were set by the company in the year 2000. This had
led to the shift of strategy from global standardisation to localisation (Chung, 2015). The
major reason behind the shift of strategy was that the development of products and marketing
activities have to be based on the local demands and needs. The objective behind the
implementation of this strategy is based on the ways by which local needs can be fulfilled
with the help of products that are developed by Coke. The lack of a proper global
advertisement had led to the failure of the strategy that had been implemented by the CEO of
the organization. The lay-off of employees from the headquarters was also a major reason
behind the lack of proper levels of profits (Edwards et al., 2016).
Characterisation of strategy currently pursued by Coke
The current strategy that has been implemented by Coke and is being pursued
presently is considered to be a mix of localization and global standardization. Neville Isdell,
who was appointed as the CEO of Coke in the year 2004 had provided importance to the
ways by which the local marketing activities and the product development that are performed
in different countries. The CEO has development a mid-point between the strategies that had
been implemented by the previous CEOs of Coke. Isdell believed that the pricing, marketing
and development of products need to be different for the various countries and they need to
match the local conditions as well (Haron, 2016). On the other hand, the CEO had also
provided importance to the implementation of effective ideas across all the nations. This
strategy had led to the development of different types of products that can be offered to the
customers of the countries like Japan and China and are based in their personal needs and
demands. The major benefits that are provided by the implementation of this strategy are
based on the ways by which local demands can be fulfilled. The requirement of different
developing products that are able to fulfil the needs of customers on a local basis. Coke had
failed to reach the financial targets that were set by the company in the year 2000. This had
led to the shift of strategy from global standardisation to localisation (Chung, 2015). The
major reason behind the shift of strategy was that the development of products and marketing
activities have to be based on the local demands and needs. The objective behind the
implementation of this strategy is based on the ways by which local needs can be fulfilled
with the help of products that are developed by Coke. The lack of a proper global
advertisement had led to the failure of the strategy that had been implemented by the CEO of
the organization. The lay-off of employees from the headquarters was also a major reason
behind the lack of proper levels of profits (Edwards et al., 2016).
Characterisation of strategy currently pursued by Coke
The current strategy that has been implemented by Coke and is being pursued
presently is considered to be a mix of localization and global standardization. Neville Isdell,
who was appointed as the CEO of Coke in the year 2004 had provided importance to the
ways by which the local marketing activities and the product development that are performed
in different countries. The CEO has development a mid-point between the strategies that had
been implemented by the previous CEOs of Coke. Isdell believed that the pricing, marketing
and development of products need to be different for the various countries and they need to
match the local conditions as well (Haron, 2016). On the other hand, the CEO had also
provided importance to the implementation of effective ideas across all the nations. This
strategy had led to the development of different types of products that can be offered to the
customers of the countries like Japan and China and are based in their personal needs and
demands. The major benefits that are provided by the implementation of this strategy are
based on the ways by which local demands can be fulfilled. The requirement of different
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