2. IDENTIFY STRATEGIC QUESTIONS FACING COCA-COLA INDIA. (FIVE AT THE MOST)
The Coca Cola Company (Coca- cola) is a leading manufacturer, distributor and marketer of Non-alcoholic beverages concentrates and syrups, in the world the company owns licenses of more than 400 brands, including diets and light beverages, water, juice and juice drinks, teas, coffees, and energy and sports drinks. The company operates in more than 200 countries.
Ever since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels. Coca-Cola India is among the country’s top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations.
However due to certain strategic problems, Coca-cola India had to face certain tough competition with PepsiCo. India. In this segment, we try to discuss the strategic questions facing Coca-cola India.
• Low Export levels: The brands produced by the company are the brands produced worldwide. In India, major controversies lie regarding the quality of the drink available to consumers, thus decreasing the export levels in the country.
• Smaller Scale Sector Reservations Limit Ability To Invest and Achieve Economies Of Scale: the company’s operations are carried out on small scale and due to Government restrictions and ‘red-tapism’, the company’s finds it difficult to invest in technological advancements and achieve economies of scale.
• Slowdown in Rural Demand: The rural market may be alluring but it is not without its problems. Low per capita disposable income that is half the urban income are related to social problems like poor living standards. All this leads to a...