External factors impacting Coca Cola in its launch in Myanmar



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External factors impacting Coca Cola in its launch in Myanmar

INTRODUCTION

Coca Cola has proven to be the most recognized brand. Coca Cola has its presence across the world except for Myanmar, North Korea, and Cuba. However, the firm has signed deal with Myanmar and launched a bottling plant in the country. The firm has faced several challenges in getting its target market to like its product. There are several external factors that should be considered by Coca Cola in planning its marketing strategies in the country. These factors are discussed in this study.

Coca Cola started bottling its plant in Myanmar in June, 2013. This is a planned five-year action taken by the firm. The firm has done an investment of $200 million on the plant. There had not been any local production of Coca Cola in the country for around 60 years. The return of Coca Cola in the country reveals the opportunities the firm sees in the country (Htun, 2013). The country was led by a military rule for several decades. Now, it has developed into a free economy. This is the factor that has motivated Coca Cola towards investing in the country. The firm has involved a local partner Pinya Manufacturing Co. to assist the firm in carrying out its activities related to bottling plant. This investment will create around 22,000 jobs in the country.

There are five external environmental factors that should be considered when considering a global market strategy. These include new entrants in the market, threat of replacement or substitute products, bargaining power of suppliers, bargaining power of buyers, and rivalry between companies belonging to the same industry.

The external environmental factors which indicate that the Republic of the Union of Myanmar is a strong market for Coca-Cola and other consumer goods to explore are the rivalry between firms as PepsiCo has also planned to launch its bottling plant in the country. Additionally, the economy of Myanmar has opened up for business (Wilson, 2012). This means that bargaining power of buyers is present in the country. There is a massive race that is going on in the country as new firms are launching their business and products in the country. Additionally, the country is at a crucial geographic location and the economy of the country is expected to grow fourfold.

DISCUSSION

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