The Coca-Cola Company - Standardisation & Adaptation
Abstract
The Coca-Cola Company is the world’s leading beverage company, with markets in over 200 countries and over 1,100 brands under their portfolio. The company was founded in 1886 and is currently headquartered in Atlanta, Georgia, USA. This paper seeks to explain the impact of globalization on the standardization versus adaptation decision using examples from the Coca-Cola Company’s performance and strategies since their inception as a company.
Introduction
Globalisation can be defined as the movement toward economic, financial, trade, and communications integration by countries and their populations globally. It is a constant process and it has resulted in the intertwining and generalisation of the needs and wants of people worldwide. Another result has been the creation of a singular ‘global market’ as opposed to separate markets according to geographic regions. The Globalisation process has accelerated in recent years due to several factors such as advances in technology, government policies and laws, increased consumerism due to growing per capita income levels and the rise of powerful multinational companies who influence international trade and economies greatly.
Globalisation made it possible for companies who were once restricted to their own domestic markets to branch out and compete in the global market. However, while it is true that consumer needs and wants are becoming more generalised, it is often the case that companies who desire to sell their products outside of their domestic market must now evaluate their products and services and decide if they are well suited to the market or markets that they wish to enter or if they need to be tailored to suit. Companies must decide if to standardise their product or invest in product adaptation.
Standardisation is the introduction of a company’s product into a foreign market without any alterations to the product whatsoever. It is an attractive option for many companies because it reduces the
The Coca-Cola Company is the world’s leading beverage company, with markets in over 200 countries and over 1,100 brands under their portfolio. The company was founded in 1886 and is currently headquartered in Atlanta, Georgia, USA. This paper seeks to explain the impact of globalization on the standardization versus adaptation decision using examples from the Coca-Cola Company’s performance and strategies since their inception as a company.
Introduction
Globalisation can be defined as the movement toward economic, financial, trade, and communications integration by countries and their populations globally. It is a constant process and it has resulted in the intertwining and generalisation of the needs and wants of people worldwide. Another result has been the creation of a singular ‘global market’ as opposed to separate markets according to geographic regions. The Globalisation process has accelerated in recent years due to several factors such as advances in technology, government policies and laws, increased consumerism due to growing per capita income levels and the rise of powerful multinational companies who influence international trade and economies greatly.
Globalisation made it possible for companies who were once restricted to their own domestic markets to branch out and compete in the global market. However, while it is true that consumer needs and wants are becoming more generalised, it is often the case that companies who desire to sell their products outside of their domestic market must now evaluate their products and services and decide if they are well suited to the market or markets that they wish to enter or if they need to be tailored to suit. Companies must decide if to standardise their product or invest in product adaptation.
Standardisation is the introduction of a company’s product into a foreign market without any alterations to the product whatsoever. It is an attractive option for many companies because it reduces the
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