Coca cola et la mondialisation

Coca-Cola

 The Globalization of Coca-Cola

Coca-Cola, a world-renowned brand, has successfully embraced globalization to expand its market presence. Through strategic partnerships and acquisitions, it has established a strong presence in over 195 countries, catering to diverse consumer preferences. Much of the company's 40 billion dollars in revenue growth now comes from globalization. In 2020, International sales totaled 66% of Coke's sales volume, while the United States had 34%.

Market Access and Expansion 

Firstly, the opening of borders enabled Coca-Cola to reach more customers and grow its sales in different regions of the world.

Coca-Cola has benefited from the reduction of tariffs and the implementation of free trade agreements in several ways. For example, the North American Free Trade Agreement (NAFTA) or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and furthermore the World Trade Organization which China joined in 2001. As a result, China lowered its tariffs on imported soft drinks from 65% to 15%, creating a huge opportunity for Coca-Cola to enter the world’s largest and fastest-growing market. It also benefited from the improved protection of intellectual property rights and the elimination of discriminatory regulations.

The company has also been catering to the diverse preferences of its global customers, adapting them to resonate with local cultures. In China, for example, Coca-Cola launched personalized bottles with Chinese names during the Chinese New Year.

However, it also exposed Coca-Cola to more competition and regulation from local and international players. The company also has to comply with different tax policies and environmental standards in different countries, which can affect its profitability and reputation.

Supply Chain and Logistics

Globalization has also led to the emergence of global supply chains. Companies now have the option of sourcing materials and components from different countries, benefiting from cost-effectiveness and specialized expertise. For example, multinational companies like Coca cola have taken advantage of global supply chains to assemble their products in countries with lower labor costs, enabling them to offer competitive prices and dominate the global market. The brand sources its ingredients, materials, and services from different countries at lower costs and higher quality like sugar from Brazil and packaging from China and Turkey.

However, opening borders can also create challenges and risks for Coca-Cola’s supply chain and logistics by increasing its complexity and vulnerability to disruptions. For example, Coca-Cola experienced bottlenecks delaying ingredients on the way to its plants as health screenings and policy changes slowed some border traffic around the world during the COVID-19 pandemic. The company also has to deal with the impacts of climate change, political instability, and social unrest on its supply chain operations in some regions.