Essay Example on Coca-Cola: A Global Sign of American Flavor & Its Diversification Strategy

Coca-Cola is an American corporation that has its history traced from 1892. It has diversified over the years, and today, it engages in the manufacturing and production of syrup and a sweetened, renowned carbonated drink (Team, 2016). The carbonated drink currently exists as a cultural institution and also a global sign of the American flavor. As such, the paper gets premised on the discussion of Coca-Cola from Forbes publication and its diversification strategy and how the strategy was created, among other issues.

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The type of diversification described in the publication is concentric. The diversification implies that there is technological relatedness between the industries of production (Le, Jiang, Sandor, Stashick, & Zhang, 2017). For example, Coca-Cola selling its products through retailers, a practice which it has engaged on for a long time (Khan, 2012). The publication notes the binding agreement that the Coca-Cola Company entered with Chi Limited in Nigeria to increase its market and, at the same time, increasing the quality of its production (Team, 2016). The diversification was created when the two companies agreed when the companies agreed on a strategic partnership. Notably, the diversification may come with specific challenges (Kim, Hong, Kwon, & Lee, 2017). For example, Chi Limited may fail to attain acquiring a global peak, but Coca-Cola may successfully increase its diversification presence in Nigeria and Africa as a whole. The sustainability of the diversification may also not be guaranteed considering possible domination by Coca-Cola.

Conclusion

In summary, the Forbes publication is based on concentric diversification. The company of choice is Coca-Cola, and matters touching its diversification with Chi Limited has extensively been discussed. Other issues have touched on the challenges of diversification and comment on its sustainability.

References

Baah, S., & Bohaker, L. (2015). The Coca-Cola Company. Culture, 16, 17. Retrieved from https://www.academia.edu/download/44703116/strategic_analysis_of_coca-cola_sandra_baah.pdf

Khan, S. (2012). Concentric Diversification Is a New Product Offering or Cannibalization. A Descriptive Study. International Review of Management and Business Research, 1(1), 18. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.681.995&rep=rep1&type=pdf

Kim, H., Hong, S., Kwon, O., & Lee, C. (2017). Concentric diversification based on technological capabilities: Link analysis of products and technologies. Technological Forecasting and Social Change, 118, 246-257. Retrieved from https://isidl.com/wp-content/uploads/2017/08/E4576-ISIDL.pdf

Le, A., Jiang, J., Sandor, M., Stashick, M., & Zhang, L. (2017). Business Ethics: The Coca-Cola Company. Simon Fraser University Undergraduate Journal of Philosophy, 1(1), 35-45.

Retrieved from http://journals.lib.sfu.ca/index.php/sfu-ujp/article/download/119/97

Team, T. (2016). How Coca Cola Is Continuing Its Portfolio Diversification Strategy. Forbes. Retrieved from https://www.forbes.com/sites/greatspeculations/2016/02/25/how-coca-cola-is-continuing-its-portfolio-diversification-strategy/#48e566752adf