Coca-Cola Started to think Globally between 1920 and 1930. Led by Robert W. Woodruff, the company started to establish bottling plants outside of the U.S territory; France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South America, when the WWII began, Coca-Cola was being bottled in 44 countries. When the war ended 64 plants pass to Coca-Cola after the Joint Venture that the company had with the Government of U.S. Coca-Cola was in charge of supplying the troops for exchanges of not cutting the supply of sugar that the Government had to put for the war.
Coca-Cola is always looking for potential markets and looking for ways to get in those market. Thats call environmental scanning and the company had mastered. So far Coca-Cola know by now that each market that they are trying to get in is different then the other one that they just opened. For that reason they have to start for the begging and they need to scan the environmental of the new market to see ways to enter to the market.
Why China?
China has the worlds largest population a large geographical area and more social diversity than any other country. The government of China has a very strict control on every aspect of any product thats is entering in their country ans specially those that come from U.S.
In 1970 China suffered from a outdated bottling plants facilities, and only one soft drink was distributed ( Coca-Cola) the rest of the soft drink where control it by the government. Initially Coca-Cola was limited to sell their product to specially retails like; hotels or friendships stores. In 1980 Coca-Cola joint Venture with the government of China an open new bottling plant in Beijing and Province and Coca-Cola give them Owner ship to the Government of China in exchange of better sales distribution. 1984 Coca-Cola open their own bottling plant in partnership with the Government in Zhuhai with the minister of light industry of China, the following year the Government let Coca-Cola Company sell their products to the people of China.
Coca-Cola has Joint Venture with other companies from China to expand their market; Tianjin Jin Mei Beverage is one of them they share the market 50-50 equity. This particular Joint Venture is the one who increase the market for Coca-Cola. Moreover, the company on their scanning of the market in China found out that the people is different then U.S market. Therefore, the approach of Coca-Cola was different instead of forcing the people trough aggressive sales Technics to sale their products, they have focus on the need of the China community and had develop new products to enter in that market; they have a noncarbohydrate drinks with mango, jasmine teas, green apple and coconut just to mention a few.
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