Based on the most recent ten press releases on the Coca-Cola corporate website Press Center, the company follows two primary business strategies: international and global. The company does not highlight the activities characterized by multi-domestic and transnational approaches. The Coca-Cola Company focuses on acquiring new stakeholders and large companies to promote the brand through advertisement. Moreover, many recent updates are related to business plans in different countries under the political events.
The international strategy can be seen in some recent posts related to the company’s activities in different countries. For example, the suspension of business in Russia due to the Russia-Ukraine conflict should be mentioned (The Coca-Cola company suspends its business in Russia, 2022). The significant advantage of this strategy for the company is the ability to control the subsidiary businesses in other countries. Like in the current case, the head office decided to suspend all business activities in one country. Another advantage of the strategy is that it allows adjusting to the changing market conditions. Despite the suspensions in Russia, the company’s annual dividend increased (Board of directors of the Coca-Cola company announces, 2022). This is the result of the rational implementation of the international strategy. The disadvantage of the method is the higher financial risks for the company caused by the diversification of the business in different countries.
The global strategy can also be seen in the recent company’s activities. For example, the acquisition of the stakes of different companies all over the world shows that the company strives to strengthen its international positions (The Coca-Cola company acquires, 2021). Moreover, the company continues to establish a strong product image through advertising in different spheres (The Coca-Cola company acquires, 2021). The global strategy’s main advantage is to expand the clients’ base through global resources allocations. Another advantage is the establishment of the well-recognized company’s product image. The company’s vulnerability to political problems is the negative aspect of this strategy. Coca-Cola Company should react to particular issues which are not directly related to the market conditions. This causes another disadvantage of this strategy: foreign culture and political challenges.
As was mentioned earlier, the strategies which the Coca-Cola company does not use are multi-domestic and transnational. One of the major advantages of the multi-domestic strategy is that it contributes to more target-related advertising. However, considering the sophisticated advertising strategy of Coca-Cola, this advantage is useless for the current company. Another pro of this approach is the culture-centered marketing strategy. Coca-Cola has a well-established image of its products and does not adjust the advertisements for cultural peculiarities. The disadvantage of the multi-domestic method is that it is time-consuming. The careful adjustment to the cultural peculiarities also requires huge budget allocations.
Transnational strategy is another approach that cannot be seen in recent publications. Its advantage is the decentralized business and more cost-effective business leading. At the same time, the companies focusing on the transnational strategy are at higher risk of losing control over the diversified businesses. Moreover, this strategy provides no opportunity to understand the foreign market, resulting in significant losses for the company. Therefore, the analysis of the most recent press releases of Coca-Cola shows that the company focuses on global and international marketing strategies. Despite the disadvantages of both approaches, the company manages to prevent significant losses. Moreover, the company pursues the expansion of the business even in an unstable market and political conditions.
References
Board of directors of the Coca-Cola company announces 60th consecutive annual dividend increase and net share repurchase outlook (2022). The Coca-Cola Company.
The Coca-Cola company acquires remaining stake in BODYARMOR (2021). The Coca-Cola Company.
The Coca-Cola company suspends its business in Russia (2022). The Coca-Cola Company.