Coke Case Study
However, public's reaction to this change was negative and the market did not welcome New Coke, which suggested that New Coke was a failure for the company (Imram, 1999). Innovation requires certain external and internal environmental conditions (Amit, Zott & Pearson, 2012). In Coca-Cola's New Coke innovation, there are two issues that significantly affect the results.
The first factor is the determination of entrepreneurs. As the head of Coca-Cola Company, Robert Goizueta was committed to reform and bravely face competitive challenges of Pepsi and opposition inside the company and launched the innovation. However, overconfidence of entrepreneurs might lead to blind investment and being lost in their own determination (Greising, 1998). When entrepreneurs are so deeply addicted to their own ambitions of innovation, they tend to ignore warnings and objections, which might lead to the inevitable failure of the innovation (Greising,