Coca-Cola Essay

477 Words2 Pages
1. Robert Goizueta believed the main difference between U.S. and international markets was the level of penetration in the international market. He believed global standardization allowed more strategic control over foreign bottlers. His strategy was centralized management and marketing in Atlanta and he emphasized a one-strategy-fits-all strategy. I think his reasoning was based upon the fact that Coca-Cola was already being marketed to over 76 countries and was managed individually by local management to accommodate local tastes and preferences. This strategy was having a negative impact on company profit since there were many duplicate functions, small scale production runs and too much customization. This was costing Coca-Cola money by limiting their ability to reduce costs. His strategy was standardization resulting in product produced at the most economic price which provided value and incentive for the customer. Consequently, the benefits were economies of scale by using the same advertising message worldwide and reduced production costs by less customization and more standardization. The Goizueta strategy focused on increasing profitability and growth by reaping the benefits of cost reduction and economies of scale. 2. The limitations of Goizueta’s strategy were that his advertisements were insensitive to local markets as they were standardized here in America. Also, the product was standard and management was limited to react to the market as everything was being managed here in Atlanta, Georgia. Goizueta believed that a distinction between international and domestic markets no longer applied. Therefore, he focused on a handful of megabrands to drive volume and growth worldwide. Daft believed that Coca-Cola needed to put more power back in the hands of local country managers. He thought that strategy, product development, and marketing should

More about Coca-Cola Essay

Open Document