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Strategic Coca Cola in China Essay Sample

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Strategic Coca Cola in China Essay Sample

The firm chosen for this essay is Coca Cola China .
1) What are the two or three main strategic issues facing the company?
The main strategic issues facing Coca Cola China are :

• Health awareness :
The products of Coca Cola company are considered to be bad and harmful for health .They contain a large percentage of sugar .In 2006 , the government agencies of India have claimed that Coca Cola’s products contain pesticides that generate dangerous problem for health and a study in the medical journal ‘The Lancet in 2001 ‘ reveled that the probability of a child to be obese increase greatly with the sugar-sweetened soft drink that he adds to his diet .

Furthermore , according to the European journal of Cancer Prevention , drinking regularly soft drinks elevate the blood sugar and insulin levels in the body ,they include high-fructose corn syrup that was linked to obesity and diabetes .

Such publicity can have a big damage to the company in international and growing markets notably with the increasing of consumer awareness of the health problems . In fact, Nowadays we are witnessing enormous changes in attitudes, behavior and societal concerns, people are becoming more aware about health problem and more concerned with a healthy lifestyle.

The consumer awareness of health and obesity problems are considered to be a serious threat to the carbonated drinks company and a big challenge to Coca Cola China industry .A large category of people are deviating their consumption to healthy products and preferring more low-calorie carbonates drink, sports drink, bottled water ,juice and tea .

• Pepsi competition :
Coca cola main competitor is Pepsi Co, the two company represent the most heated enemies in the beverage business. They exist others competitors , but no one of them have successfully accessed the market such as Coca Cola and Pepsi .The challenge for the two company consist on the creation of new product of carbonated and non-carbonated beverage and the increase of revenue .Both of the two brand have similar strengths and weaknesses, but the problem is that Coca Cola focuses almost completely on beverage product while PepsiCo handle other branch and don’t concentrate all its resources on one specific product which gives to Pepsi more chances to takes sales advantages and to increase its market share.

• The absence of innovation :
The innovation and the creation of new variants that have the ability to fits the customer trend is one of the biggest challenges facing Coca Cola company .Over the last few year ,Coca Cola has failed in the creation of new products and then has struggled in the face of the heated competition of PepsiCo .

What two or three strategic recommendations would you make to management to ensure the company’s future success? The main recommendations that I would make to management to ensure the company’s future success are:

• Keep in touch with costumers and shoppers, and develop new plans in order to adapt the Coca Cola’s products with changing market.

• Understand and recognize the needs and wants of each generation : the younger generation are more oriented toward energy drink and sport drink and on the other hand ,the aging boomer focuses more on healthy foods and drinks with low percentage of sugar and sodium .

• Keep innovating new variants ,services ,packages and supply chain , creating value and expanding to other product’s category . That is because the business of soft drink is crowded with competitors and since the consumers prefer healthy products ,the market of carbonated-drink is decreasing .Thus ,the introduction of new products will enable Coca Cola to rise it’s profits and to keep growing .

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