Global corporations such as Coke and McDonalds cater to various cultures in different countries all over the world.
However as two authors explain from their respective works about each of business giants, while Coke and McDonalds have similar perspectives about the global market, they have had very different experiences in conducting business in it and are now following different paths towards their perceived success.Since its local and partial global success, Coke has been confident in claiming that its brand name is its strongest competitive advantage (Hays, 2000). Global marketing strategies and advertisements show off the company’s supposed ability to sell coke to new markets simply because of all the hype that the product has been able to build up over the years. Similarly, McDonalds grounds its global strategy to uniformity in terms of the ambiance and nature of service that it offers.This trademark characterized by air-conditioned settings, playgrounds, and a friendly crew is present in all of their establishments (Watson, 2000).
Thus, each of these global companies relies on their brand or the implication of their brand in their entry to different markets.McDonalds has had a considerable success in marketing its foreign identity to countries all over the world. In China, parents save to let their children eat at McDonalds in order for their children to connect with the outside civilization which their parents believe is an essential experience for their children’s development (Watson, 2000).This has spelled success for McDonalds everywhere it goes. On the other hand, Coke’s success in the global market did not last as consumers became pickier with their beverages, no longer being easily swayed by bandwagon advertisements (Hays, 2000). Coke began to lose to local competition that offered tastes that were more palatable for consumers (Hays, 2000).
While McDonalds continues to implement its strategies based on a singular identity today, Coke under its new management has began to switch its global focus from being general to specific. Coke management is encouraged to “think smaller” which is to adapt the products to the tastes and interest of the market in order to be able to compete more adequately.Clearly, similar strategies in the global business arena can lead to different outcomes. This shows the diversity in consumer behavior and the need to study foreign markets closely before venturing in it.ReferencesHays, C.
(2000). Learning to Think Smaller at Coke. Retrieved November 9, 2008 from: http://query.nytimes.com/gst/fullpage.
html?res=9C06E6DE1E3FF935A35751C0A9669C8B63&sec=&spon=&pagewanted=2Watson, J. (2000). China’s Big Mac Attack. Retrieved November 9, 2008 from: http://www.unc.edu/courses/2006spring/geog/021/001/watson.pdf
