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Coca Cola: International Expansion

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1. What country should the Coca Cola Company consider expanding its business more?
2. Consider the 4 aspects of the Diamond of National Advantage: industry rivalry, demand conditions, related and supporting industries, and factor endowments.
3. Analyze the forces (in the home market and international market) that will help the Coca Cola company succeed with its potential expansion and the forces that may act as barriers to that expansion.
4. Recommend 1 specific leadership action for the following: Developing a global mindset, Developing sensitivity to cultural differences, Decentralizing their structure to empower local managers, Deciding on the level of involvement.
5. Recommend whether the Coca Cola company should expand into the chosen country. Explain your rationale.

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Solution Summary

This posting explores the expansion of Coca Cola Company into a specific country.

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1. The country that Coca-Cola Company should consider expanding its business more is Brazil. In Brazil, there is already a tradition of drinking soda in the form of Guarana. Moreover, the economy of Brazil is the largest in the Southern Hemisphere. The economy of Brazil is middle-income and developing. It has a high potential for the market for Coca Cola Company.

2. From the perspective of Diamond of National Advantage: Industry rivalry is moderate, Coca-Cola is the largest country and its competitors are PepsiCo and Heineken. The demand conditions are favorable because there is an increasing demand for healthier products, non-alcoholic beverages, and soft drinks with natural ingredients. The related and supporting industries are the production of Guarana which is a soda. For example, Gurana-Antarctica is popular in Brazil. One of the key supporting industries of Coca-Cola is sugar and Brazil is a large producer of sugar and exports sugar. ...

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  • BSc, University of Calcutta
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