According to the text, strategic alliances or partnerships occur when two or more firms agree to share the costs, risks and benefits associated with pursuing new business opportunities (Parnell, 2014). Coca-Cola has a strong bottling partnership network that allows it to produce different beverages and packages that are appropriate for the consumers (Coca-Cola, 2014). They are known for acquiring bottlers in underperforming markets and using their own resources knowledge to improve performance. Since Coca-Cola owns a controlling interest in bottlers across various countries, the company can compensate for limited local resources. The strong bottling network allows the company to design business models for still and sparkling beverages in
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Sprite has partnered with legendary hip-hop artists with their “Obey Your Verse” campaign by displaying lyrics on packaging with 16 different designs for a limited time (Costa, 2016). These strategic alliances cater to the younger generation in hopes of inspiring them to purchase more …show more content…
With the high obesity rates in children and adults, these products are considered to be unhealthy. The Center of Disease Control and Prevention has reported that one-third of the United States adults are obese and the World Health organization is concerned about the large number of children under the age of five that are obese around the world. (“The Coca-Cola Company SWOT”, 2015). Public health officials are taking steps to reduce junk food advertisements that target school age children. The Indian government has new guidelines that could possibly prohibit soft drinks in school canteens in the country. This could have a major impact on Coca-Cola’s growth in that region. They would still be able to sell water and other still beverages in the schools in India, but the new governmental regulations and taxes on the beverages with high sugar content could reduce the demand for the products. This would have a negative impact on profits in that market.
Coca-Cola believes in the growth opportunities in the Indonesian market since they have invested over a billion dollars in the past 25 years (“The Coca-Cola Company SWOT”, 2015). Coca-Cola has invested $500 million in Indonesia to help speed up the growth process within the next three to four years. It doesn’t look like Coca-Cola has any plans to decrease their investment in the Indonesian market.
Sprite has partnered with legendary hip-hop artists with their “Obey Your Verse” campaign by displaying lyrics on packaging with 16 different designs for a limited time (Costa, 2016). These strategic alliances cater to the younger generation in hopes of inspiring them to purchase more …show more content…
With the high obesity rates in children and adults, these products are considered to be unhealthy. The Center of Disease Control and Prevention has reported that one-third of the United States adults are obese and the World Health organization is concerned about the large number of children under the age of five that are obese around the world. (“The Coca-Cola Company SWOT”, 2015). Public health officials are taking steps to reduce junk food advertisements that target school age children. The Indian government has new guidelines that could possibly prohibit soft drinks in school canteens in the country. This could have a major impact on Coca-Cola’s growth in that region. They would still be able to sell water and other still beverages in the schools in India, but the new governmental regulations and taxes on the beverages with high sugar content could reduce the demand for the products. This would have a negative impact on profits in that market.
Coca-Cola believes in the growth opportunities in the Indonesian market since they have invested over a billion dollars in the past 25 years (“The Coca-Cola Company SWOT”, 2015). Coca-Cola has invested $500 million in Indonesia to help speed up the growth process within the next three to four years. It doesn’t look like Coca-Cola has any plans to decrease their investment in the Indonesian market.