The Coca-Cola Company's Internationalization in China
RMIT UNIVERSITY
School of Management
Semester 1, 2014
Course: International Business (BUSM1222)
Lecturer: Dr. Natt Pimpa
The Coca-Cola Company’s Internationalization in China
By Ivi Suryana Junior
Student ID no. 3464353
Bachelor of Business (International Business), First Semester
S3464353@student.rmit.edu.au
1. The Coca Cola Company Overview
The Coca-Cola Company is an American multinational beverage corporation that was established on September 5, 1919. The company owns up to 500 nonalcoholic beverage brands, consisting of sparkling beverages and a variety of still beverages, and markets it to all five segments namely North America, Latin America, Europe, Eurasia & Africa, and lastly the Pacific (Thomson Reuters Corporation 2014). The company has a history of acquisitions and still continues to do so until today. By the year ended December 31, 2011, the company succeeded in acquiring Great Plains Coca-Cola Bottling Company in the United States and the remaining interest the company had on Honest Tea, Inc. In September 2012, they acquired approximately 50% equity in Aujan Industries’ beverage business (Thomson Reuters Corporation 2014).
The list goes on about the company’s journey through acquisition. In fact, the Coca-Cola Company entered China in a rather unorthodox way, by sneaking into the wholesale market under the pretext of selling goods from local places of production by setting up wholesale marketing networks, giving the company a competitive advantage over domestic producers due to the company’s scale and financing abilities (1999). This happened in the year 1920, when China’s regulations still restrict foreign company activities due the First World War that just ended on 1918. However, after World War II, China converted to Communism and thus halted the progress of most foreign business, including Coca-Cola. This is only until 1979, right when China was
School of Management
Semester 1, 2014
Course: International Business (BUSM1222)
Lecturer: Dr. Natt Pimpa
The Coca-Cola Company’s Internationalization in China
By Ivi Suryana Junior
Student ID no. 3464353
Bachelor of Business (International Business), First Semester
S3464353@student.rmit.edu.au
1. The Coca Cola Company Overview
The Coca-Cola Company is an American multinational beverage corporation that was established on September 5, 1919. The company owns up to 500 nonalcoholic beverage brands, consisting of sparkling beverages and a variety of still beverages, and markets it to all five segments namely North America, Latin America, Europe, Eurasia & Africa, and lastly the Pacific (Thomson Reuters Corporation 2014). The company has a history of acquisitions and still continues to do so until today. By the year ended December 31, 2011, the company succeeded in acquiring Great Plains Coca-Cola Bottling Company in the United States and the remaining interest the company had on Honest Tea, Inc. In September 2012, they acquired approximately 50% equity in Aujan Industries’ beverage business (Thomson Reuters Corporation 2014).
The list goes on about the company’s journey through acquisition. In fact, the Coca-Cola Company entered China in a rather unorthodox way, by sneaking into the wholesale market under the pretext of selling goods from local places of production by setting up wholesale marketing networks, giving the company a competitive advantage over domestic producers due to the company’s scale and financing abilities (1999). This happened in the year 1920, when China’s regulations still restrict foreign company activities due the First World War that just ended on 1918. However, after World War II, China converted to Communism and thus halted the progress of most foreign business, including Coca-Cola. This is only until 1979, right when China was
References: "Being delicious and being happy", 2006, Strategic Direction, vol. 22, no. 7, pp. 27. (1999). FOREIGN WHOLESALERS ENTER CHINA MARKET. AsiaPulse News: 1008026u1000292. (2007) (2010) (2011) (2011) (2012) Fish, I. S. (2010). Still made in China. Newsweek. 156: 10.