Coke In India
Essay by 24 • December 12, 2010 • 993 Words (4 Pages) • 1,355 Views
Why might India want Coca-Cola to enter their market? Why and how should Coca-Cola enter the Indian market? In my opinion, collaboration between India and Coca-Cola would be a positive expansion of growth for both parties. I will first explain why this would benefit both sides, and second why and how Coke should enter the Indian market.
India is rapidly growing in population, and in a great position to become an economic giant of the global market. With their future as a big capitalist society their position in the world market place will only benefit from a joint venture like the one Coke can offer. This joint venture will require both parties to invest heavily on the strategic alliance necessary to draw the population in on the merger. Joint business ventures with Coke will determine how well they can sell their culture and country on the idea of the global benefits to their country. India can only benefit from attracting big international companies like Coke, because it will have a windfall effect on other international companies if they succeed. Coke will bring much needed jobs and advanced technological gains in manufacturing along with much needed revenues for the Indian Government.
Coke is an international leading company and other companies will watch and learn from their business ventures. Therefore, it will bring other businesses into the market if this merger is successful, which in turn will generate more revenue. Investments will be made in India's new infrastructure, better education for the work force and a higher standard of living for the people of India.
Distribution sites will have to be established, creating jobs for many people in the transportation sector, along with the need for retail companies to be established. Coke will consume more domestically produced materials which will only increasing revenues for other local companies. India's increases in revenue developed from Coke's business ventures could overflow into the tourism industry. Tourism will allow others to learn the Indian Culture and invite other opportunities to enter foreign markets and export goods and services to many other countries.
The tourism market for India could be another great explosion for revenue. With the job gains in the public relation firms and the marketing firms this would also means more jobs and revenue for the country of India. This could entice people all over the World to spend their vacation in India and have a great opportunity for future revenue. The expansion of tourism brings the opportunity to experience culture, entertainment, cuisine, and more importantly to sell it's self as a world leader in global growth. The profits made by tourism could lead to bigger investment opportunities, and more joint ventures along with much wanted revenues.
What is it Coke stands to gain from this joint venture? Coke stands to gain significantly with this strategic alliance venture as well. India has a population of over 1 billion people. India has a growing middle class and a very hot climate. With the earth's population being in 80% of third world countries this would allow for a far greater profit margin with a country this size. Coke could establish its self as a world leader in the soft drink industry, and gain a foothold over other soft drink companies that undoubtedly will follow them into India. Further, if Coke could succeed in winning over the people in India and their government then other nations will want to do business with them in the future to fuel their
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