A Scalable Distribution Model
North Korea and Cuba and Coca-Cola. Only two countries do not drink Coke. Coca-Cola Company has become omnipresent by building a network of local bottlers and large portfolio of regional brands.
Empowering bottlers in every region has made Coca-Cola available in the most remote locations. The distribution network is adapted to fit geographic obstacles. In Africa, the Micro Distribution Centre model encourages bottlers to rely on independent entrepreneurs, whose main job is to distribute Coca-Cola. The win-win model increases Coca-Cola’s local agility by empowering independent businesses. They do everything they can to make Coca-Cola available everywhere, as they are incentivized to do so.
The distribution strategy illustrates a strong need for multinational companies to adapt to local needs. Coca-Cola is one of the most scalable product. Every single bottle—or can—has some concentrate that comes from Atlanta. Using local bottlers has enabled Coca-Cola Company to develop a strong local presence.
The Ability to Respond to Changing Lifestyles
Coca-Cola’s portfolio of 500 brands illustrates its flexibility to cope with changing needs. Facing radical change in lifestyle, Coca-Cola acquired Innocent to address a growing market of health-conscious consumers. The occidental trend of drinking coconut water led to more acquisitions, as Coca-Cola was able to foresee new opportunities of growth and create synergies with a powerful marketing machine.