Globalization and its Impact on Firms

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The Coca Cola Company, for instance, is one of the major multinational corporations operating in China as the leading market player in beverage drinks. In fact, the company holds nearly 16% of the total market share control of beverages in the Chinese market, which is a huge threat to the local players in the industry. The company is currently planning to spend $ 4 billion between 2015 and 2017 in the Chinese market in order to cut off the stiff competition it is getting from the here as the world’s most popular beverage drink market. This is just a sign of how much competition the local firms face from established multinational corporations. As such, apart from these firms coming into the domestic market with huge outlays of capital, they also come in with a reputable brand image recognized over a global scale, which makes it difficult for domestic firms to fight their competitive wave. Jianlibao is one of the leading domestic brands in beverage production in China. The brand had humongous success within its home market during the 1990s that spurred the sports drink maker to pursue its dream of expanding into international markets abroad. This move was totally out of line with the company’s local prospects of protecting and safeguarding its domestic playing field from international market players. For instance, its expansion to dozens of overseas markets created room for the entry of new international players like Coca Cola, which came in with a bang and aspired to take over the local market. As such, Coca Cola produced a local brand that blended appropriately with the Chinese market, the Kekou Kele, which is among the most effective strategies employed by international firms to adapt to local Chinese markets, as well as, connect with localconsumers.This new trade name for the company’s beverage sounds similar to the original and translates as Delicious Happiness.