The Coca-Cola Company is the largest beverage maker in the whole world. Part of the reason behind this dominance is the wide range of brands, subsidiaries, and flavors that have continued to record outstanding success over the years. The company offers approximately 4,000 different drinks and owns 500 different brands. 21 of these brands record annual sales that exceed the $1 billion mark. Four of the top five non-alcoholic beverages in the world are owned and marketed by Coca-Cola. These brands are Sprite, Fanta, Coca-Cola, and Diet Coke. The company and its subsidiaries manufacture the syrup concentrate that is then distributed and sold to various bottling companies.
The Coca-Cola Company owns several notable subsidiaries, brands, and products. They Include the Coca-Cola (Coke), Diet Coke, Coca-Cola Zero Sugar, Sprite, Fanta, and Dasani. While the iconic Coke soda was invented in 1886, the Diet Coke was introduced in the market in 1982. It was marketed as the calorie and sugar-free version of the original Coke. Coca-Cola Zero was launched in 2005. Besides these, the company owns other subsidiaries such as Sprite, the global maker of soft drink with lemon-lime flavor. It also owns Fanta, a subsidiary that produces fruit-flavored soda and Dasani, bottled water that has been purified and enriched with minerals. Additionally, Coca-Cola Company produces a wide range of flavors that include Fresca soda flavor, Honest Tea flavor, and Minute Maid light flavor.
The Coca-Cola System-coca-Cola Subsidiaries
For most people, the operation of Coca-Cola Company resembles that of any other company. In reality, however, the Coca-Cola Company is a global business that is operated through numerous local channels. The company owns all the brands associated with it. Moreover, it is the one tasked with undertaking various brand marketing initiatives that target the end consumer. In 2006, all the bottling operations for the company were merged, resulting in the formation of the Bottling Investments Group (BIG). The main intention was to guarantee the long-term success of various bottling operations by ensuring that each received enough funding and appropriate expertise. BIG is tasked with identifying those operations that are both stable and thriving in order to find another qualified bottler to commence new operations and grow the business further. Therefore, BIG has the potential to drive Coca-Cola’s long-term growth especially in those markets considered to be critical. Moreover, it can help the company identify and address major structural as well as investment challenges.
In the book titled The World is Flat: A Brief History of the Twenty-First Century, Thoma Friedman analyzes globalization during this period. He considers the world’s commerce to present a level playing ground. According to him, the prevailing environment presents different competitors with equal environment. He identifies a number of flatteners that include Netscape, offshoring, in-forming, and steroids.
The Netscape Browser refers to a proprietary web browser that was developed by Netscape Communications Corporation. In the 1990s, Netscape was the most dominant web browser. By 2002, however, its use had considerably diminished as a result of the introduction of other web browser software and particularly the Microsoft’s Internet Explorer. One reason for the failure of this browser was the failure by Netscape Corporation to sustain its technical innovation. Nevertheless, the browser had a significant impact on the Coca-Cola Company. It was a huge flattening force. Apart from bringing the internet alive, the browser made it universally accessible to all age groups. The flattening aspect of Netscape is that being the first mainstream browser, it made it possible to connect people and facilitate communication between them irrespective of their location on the globe. Additionally, by giving people access to the internet and the World Wide Web, companies could easily obtain information about customers on their fingertips.
The Netscape Browser set the stage for Coca Cola Company to popularize itself on the web. Although the company did not embrace the web from the very beginning, it was able to keep abreast of various trends and apply web technological innovations in the years that followed. The company realized that technological infrastructure presented the most affordable and cheap medium to reach its customers as a result of over investments that had been made by different dot-com companies. Although the Netscape Browser was no longer existing by this time, Coca Collar has relied on other companies including Google to create highly personalized and targeted marketing messages.
Offshoring is a common practice and involves a company from one country moving its operations to a different country although the work done remains unchanged. Most emerging markets are now popular offshoring destinations for western companies. Most companies choose to offshore their operations to enjoy a number of benefits that may include cheap labor and lower taxes in the host country. Moreover, these companies consider the lower costs of healthcare and subsidized energy to be additional benefits.
Coca Cola is a business entity that was formed with the sole purpose of making profits. The company has been offshoring its production to emerging markets such as South Africa, Mexico, and China to reduce the operational costs by ensuring that its products are produced near the market. Offshoring has also helped the company to reduce the amount of tax it pays to the United States federal government.
This flattener involves availing of insightful knowledge. It encompasses an individual’s or company’s ability to build and deploy information and knowledge pertaining to their personal supply chain. Apart from enabling self-collaboration, it helps customers to become both self-empowered and self-directed. Informing plays a critical flattening function because it empowers the formation of communities across different countries.
Different search engines have played a major role in facilitating easy accessibility of knowledge and information about the Coca-Cola Company and the products it offers in different parts of the world. For instance, when the search giant Google embarked on developing classic advertisements to promote its web innovations and technologies, it developed an advert that proposed buying every person a drink of Coke. Although Google wanted to demonstrate the capabilities of its technology, it ended up promoting Coca Cola. Eventually, giving Coke away became much easier than it was before.
There are certain technologies that provide support to a wide range of collaboration thereby amplifying other flatteners. Steroids include computing, digital, mobile, and virtual technologies. Another significant steroid is the introduction of wireless devices such as mobile phones. The current popularity of the Coca-Cola Company has been supported by these steroids. Using a mobile application, for instance, a consumer in one country, say the United States, could purchase any product from the wide range provided by the company for a customer in a different country. Overall, the company has leveraged on different steroids to promote its products. In the end, Coca-Cola has created action among customers rather than just talk.
Coca Cola. (2019). What’s the difference between your colas – Coca-Cola, Diet Coke, Coke Zero and Coca-Cola Life. https://www.coca-colaproductfacts.com/en/faq/brand/four-cola-difference/
Coca Cola. (2018). The Coca-Cola system. https://www.coca-colacompany.com/our-company/the-coca-cola-system
Friedman, T. L. (2005). The world is flat: A brief history of the twenty-first century. Macmillan.