Internationalisation Process of Coca

Hazara university
Mansehra
ASSIGNMENT
Submitted to: Sir Asad javed
Submitted by: Syed jan sheer shah
Subject: entrepreneurship
Semester: 8TH BBA
Roll no 47343
MANAGEMENT SCIENCES
Internationalisation process of Coca- Cola
The Coca-Cola Company has adopted a number of processes in

its internationalization. One of the strategies is formation of
franchises in various nations across the world. Coca-Cola has
franchises in almost every country, and these franchises help it
in distributing its product. Coca-Cola uses Uppsala model to
become internationalized.
The Uppsala model is very handy in helping understand the

internationalisation process. Under this model, a company
adopts investment in the foreign markets. Uppsala model of
internalization was coined by the economists Johanson and
Wiedershiem-Paul in the year 1975 at Uppsala University and
then complemented by Johanson and Vahlne in the year 1977.
Under this model, an organization expands its investments in
the foreign market in a gradual manner.
Uppsala model can be applied in different forms. An

organization can form partnerships with other established
organizations in various countries. The two companies then sell
their products together. For instance, if a company like Coca-
Cola acquires or merges with another company in a different
country, the products of Coca- Cola are sold in the outlets of
that company.
This form of investment is usually successful since an

organization trades with another organization whose brand
name has already been established. Therefore, Coca-Cola is
saved the costs of advertising its brand to create awareness of
its products. The company may go ahead and acquire the other
company it has partnered completely making it a subsidiary.
Coca-Cola has established subsidiaries that it has been

acquiring for a long period. For example, in the year 1960 it
acquired Minute Maid, a company that produces lemon and
orange juice. Minute Maid is established in European countries
such as Germany, as well as in America.
Since its acquisition, the company has been selling soft drinks
produced by Coca-Cola. Coca-Cola has been able to extend its
operations in Europe through the help of Minute Maid. In the
year 1993, Coca- Cola acquired Thumps Up which is an Indian
company. Other companies that have been acquired by Coca-
Cola include; Odwalla, Fuze Beverage and Huiyuan Juice Group.
These acquisitions have played a very key role in internalization

process of Coca- Cola (The Coca-Cola Company, 2013). The
company is bound to remain competitive even in the future if it
keeps this strategy of internationalization.
The other form of Uppsala internationalisation model is the

establishment of manufacturing subsidiaries in the overseas
countries. This has been the major internalization process of
Coca-Cola. Coca-Cola has established manufacturing
subsidiaries in form of franchises. Franchising entails making
use of a franchiser’s trademark to sell one’s products.
This is an internationalization process that has been used by

many other companies due to its perceived benefits.
Companies use franchising as a method of internalization since
franchises make it easier for them to establish their businesses
in the foreign countries. Multinationals can establish
themselves within a relatively short period of time and at the
same time spend little on direct investments.
In addition, the company is able to create a global image by
adopting a standard marketing approach. The franchiser gets
the opportunity to learn and understand the foreign market.
They are able to know the tastes and preferences of the local
customers. This process has been very successful for Coca-Cola.
The company has gained competitive advantage over its closest

rival, Pepsi. As stated in its focus on the market, Coca-Cola
understands the market by listening, observing and learning it.
This has been boosted by franchising partners and has
facilitated its internalization process.
Coca-Cola has adopted the international strategy to integrate

with the global market. The company transfers its valuable
competencies to the nations whose competitors do not have
such competency. It, however, centralizes its product
development at the home company. The head company in the
US is solely mandated with making Coca-Cola’s formulas. It
then distributes them to all subsidiaries across the globe.
This syrup is the key to the company’s productions. The syrup is

only produced in the home country and then sold to the
bottlers in various countries. The host companies do not have
competitors who produce the syrup, and this has helped the
internationalization process of Coca-Cola.
As a result, the company does not face much pressure and its
costs of operation are low since it does not spend much to
promote its brand.

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Hazara university

Submitted by: Syed jan sheer shah

Semester: 8TH BBA

The Coca-Cola Company has adopted a number of processes in

The Uppsala model is very handy in helping understand the

Uppsala model can be applied in different forms. An

This form of investment is usually successful since an

Coca-Cola has established subsidiaries that it has been

These acquisitions have played a very key role in internalization

The other form of Uppsala internationalisation model is the

This is an internationalization process that has been used by

The company has gained competitive advantage over its closest

Coca-Cola has adopted the international strategy to integrate

This syrup is the key to the company’s productions. The syrup is

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