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Coca-Cola Is Pleased With Russia

Is it worth it or not to work in Russia? A lot of companies around the world are thinking about this sacramental question in their offices today. However, those who rush into Russian market despite its hardship might in fact find here some results.

Unquestionably, one of the leaders of international business in Russia is Coca-Cola Company. 1997 was especially fortunate for the company, when Coca-Cola took the leading position in Russian market of refreshing beverages. Company’s competition with Pepsi-Cola Company ended up with Coca-Cola’s absolute victory of 2:1, meaning that in Russia for each purchase of bottle of Pepsi there were two bottles of Coca-Cola sold.

This competition lasted for 20 years. Besides, starting from 1996 the leading company was Pepsi-Cola, which was admitted into Russian market much earlier than it’s rival. It was only in 1997 when the situation started to change abruptly. This fact might not sound very amusing; after all, thesector of non-alcoholic beverages is not the key segment of Russian market. However, in this situation, the interest in Coca-Cola Company’s success is peculiar, because it is closely connected with the politics the company holds in Russian Federation.

For such success the company mostly owes to its strategic approach in our country. After coming here in the end of 1980-ies as a typical importer, the company then started to seriously redirect its course of action. Currently, Coca-Cola Company is a major investor in Russian economy: if all American investments are estimated to be 3 billion dollars, then almost one-sixth of it is accounted for Coca-Cola Company, which is measured as 500 million dollars, with additional allocation of 100 million dollars.

Just in few years Coca-Cola has established twelve factories around Russia, which employs about five thousand Russian citizens. Moreover, according to the representatives of the company, each job position created in the enterprise generates ten more job positions in related industries.

Successful entry in many regions of Russia to a great extend is related with company’s representatives’ ability to work with the local administration, which in fact is not secreted since it plays important role in strategy of adapting and doing well in foreign market. Another component of success is extensive usage of Russian resources, materials, and personnel.

Another proof of their competence is their new big project, which is a new and assertive company. As stated by a representative of Coca-Cola Company in Russia, Joanne O’Neil, they have reserved 3 billion rubles to implement the project.

The example of Coca-Cola indicates that in Russia the work conditions are not that bad. Certainly, Coca-Cola was able to find the golden key for success, which not many companies are capable of. Indeed, the investment “off-roads” of Russian business, to all appearances, are not that impenetrable.


Date: 2015-04-20; view: 1072


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