The benchmark is the Coca-Cola Company. The company is the best in the beverage industry worldwide. It operates all over the world and uses the multidomestic marketing strategy. The company uses bottlers all over the world. The bottlers purchase the coke concentrate from the mother company and then makes beverages tailored to the domestic markets based on the consumer tastes and preferences. Though the concentrate remains the same, bottlers use different flavors depending on the tastes of the domestic customers. Product differentiation is also a major aspect used by the company (Campaign, 2000). Products are differentiated in terms of taste, color, additives and packaging based on consumer demand. The company sells similar products all over the world but the products are highly differentiated.

When marketing the company uses a common message to all customers. However, the company has had many setbacks especially in China. The Coca-Cola Company has faced many setbacks in the Chinese market. This is mainly because of the centralized structure adapted by the company. All merged brands are managed from American headquarters. Brands outside America should have an operational independence to be able to manage the market at a local level. Managing a local brand overseas creates inefficiencies.  

The Coca-Cola Company has greatly benefited from globalization. Its presence all over the world has enabled the company to be the best in the industry.  In addition, through globalization, the company has reached many consumers and has built a brand name. The company has simply succeeded through globalization. Globalization benefited the market share of the Coca-Cola Company. There are not many companies in the beverage industry and the company has managed to build a good brand name. Through globalization, the company has managed to win the hearts of many more customers who remain loyal (Campaign, 2000). The company has the competitive advantage of using bottlers all over the world. These bottlers have operational independence and thus are able to have their own strategies and tactics of improving on revenue. In addition, globalization has increased demand. The products have reached many people who through product differentiation demand the products. The company also respects the cultural values. Just recently, the Coca-Cola Company started the share a coke campaign. The campaign centered on customizing bottles by inserting names on the labels. These names are customized to fit the local market.

There are risks associated with globalization. One of the risks is customer perception. The customers in the global market are different. Not all customers will appreciate the products. In addition, the approach used may not fit a specific market. There have been cases of big companies such as Starbucks failure in Australia. Starbucks did not conduct any market research and ended up introducing goods that were not preferred by Australian consumers. In addition, starbucks also opened a many coffee shops at the same time instead of building a brand name in the new market first.

Another risk involved with globalization is culture. Cultural values are important when conducting business. People in different cultures have different values. Managing such a work force is not easy. The diversity in culture must be respected. However, using subsidiaries with operational independence is a good way of overcoming this risk (Alon, Jaffe & Vianelli, 2013). Another risk is regulatory obstacles. Regulations are different in different countries. Local policies can have negative impacts on cross border investments.

The risks can be minimized by conducting market research. With a thorough market research, one will be aware of what to expect and what to offer. One cannot just get in a market and start selling; one has to determine the market conditions and customer preferences. In addition, level of regulations and business policies are also important to consider when making a globalization decision.

Another significant thing is operation independence.  When going global, it would be good to have subsidiaries with operational independence (Alon, Jaffe & Vianelli, 2013). This is mainly because the operating conditions and regulations are different in all countries. With operation independence, it would be easy for the subsidiary to set its own tactics and strategies of operation.

References

Alon, I., Jaffe, E., & Vianelli, D. (2013). Global marketing: contemporary theory, practice, and cases. New York: McGraw-Hill/Irwin, c2013. xxi, 602 pages: illustrations, maps; 26 cm…

Campaign, A. C. C. (2000). The Coca-Cola Company. Encyclopedia of major marketing campaigns, 1, 322

Do you need an Original High Quality Academic Custom Essay?