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Coca Cola・s Challenge in China: Healthy Growth  
 
Product Ref: 16/583C Company: The Coca-Cola Company

Product Type: Case Industry: Food & Beverage

Related Product(s): Teaching Note
Coca-Cola was one of the first MNCs to enter post-reform China. The soft-drink manufacturer established robust market share on the back of a strong brand. Chinese consumer preferences, however, gradually changed: they preferred :healthy; drinks over soft drinks. As a result, Coca Cola・s competitive position eroded as foreign and domestic competitors released new products.? After a failed high-profile M&A attempt, Coca-Cola faced a strategic challenge: develop new products in-house or attempt to acquire them?
Functional Area : Economics & Business Policy
Strategy & General Management

Learning Objective: 1) To use Porter・s five-forces analysis to evaluate change in China・s beverage market in comparison to more developed beverage markets;
2) To understand how MNCs in China, in light of Coca-Cola・s experience, are revamping their business models with an increasingly competitive industry landscape and regulatory challenges;
3) To assess how different cooperation models with local firms, including strategic partnerships and M&A, can help boost a firm・s competitive position.
Length: 18 pages Country: China (People's Rep. of)

Pub. Year: 2017 Level of Difficulty: 2
         
This product type is available in the following language(s):      English
         
Related Information: N/A
 
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