【正文】 nvested in undervalued bottlers worldwide, provided financial and managerial support, and improved operating efficiencies which generated increased sales。 at times, Coke sold these bottlers after turning them around, for sound profits SELECTED LOCATIONS Coke is headquartered in Atlanta, Georgia in the ., but has subsidiaries located over a wide geography. NOT EXHAUSTIVE CONTENTS ? Company overview ? Japan market entry strategy ? Products ? Capabilities ? Organization STORYLINE ? In order to enter and succeed in Japan, Coke realized that it needed to adopt a partnering strategy. Coke allied with 17 locally owned and managed bottlers and leveraged these relationships to set up a direct distribution channel as well as gain manufacturing and marketing capabilities ? It followed its bottlers’ advice and expanded its product offerings to include specialized beverages (., milkbased drinks, coffee drinks, teas). In addition, Coke introduced new product categories (., canned soups, Coo, a flavored juice product) and new flavors in existing brands (., Fanta Golden Pineapple) to increase its market share in trendoriented Japan ? The pany was also innovative in its alliance strategy (., supply alliance with McDonalds), its marketing techniques (., introduced reclosable PET bottles), and its acquisitions (., acquisition of Kanebo’s vending machine operations). Coke’s sales channel (930,000 vending machines, over twice as many as its nearest petitor) is a distinct petitive advantage in Japan where vending machines are the most popular sales channel ? Coke realized that it needed top talent to pete effectively in Japan and sent strong managers like Doug Daft (current CEO) and Stephen Jones (current Chief of Marketing), to Japan in leadership roles. Thus, Japan was seen as a progression path to top positions in the pany ? Coke is currently the market leader in Japan’s soft drink segment with a 56% market share. Coke owns the number 1 local brand Georgia (coffee drink). However, the pany has been a slow mover in exploiting new opportunities (. water and sports drinks) ? In the future, Coke faces the challenge of expanding its low market share peration (20%) in the Japan’s most rapidly growing segment of specialized beverages CONTENTS ? Company overview ? Japan market entry strategy ? Products ? Capabilities ? Organization PRODUCT STRATEGY Coke understands the importance of offering products that appeal to the local market, in addition to its existing, classic products. Ta il or s p ro duc tsto l oc a l ta s te s? Cre a te s n e w p ro d u ct s t h a t a p p e a l t o lo ca l cu st o m e rs fo ll o w in g le a d o f s m a ll e r lo c a l p la y e rs– Mil kb a se d d ri n ks (e .g., A mb a s a )– Co ff e e d ri n ks (e .g., G e o rg ia )– T e a d ri n ks (e .g., S a ry u sa isa i)? O ff e rs p ro d u ct v a ri e ty w h ich is im p o rta n t t o w in in J a p a n– O n ly 2 5 % of s a le s in J a p a n c o me f ro m C o k e b ra n d , re st f ro m J a p a n sp e ci f ic p ro d u ct s– P ro d u ct ra n g e in J a p a n in clu d e s o v e r 2 5 b ra n d s a n d 60 f la v o rsDe v e lo ps n e wc a te gor ies? L a u n ch e s n e w p ro d u c t ca t e g o ri e s f o r J a p a n– In tro d u ce d c a n n e d s o u p s? Ho w e v e r, d o e s n o t c o mp e t e in m a n y n e w c a te g o ri e s in t re n d o ri e n te d J a p a n– Did n o t m o v e fa st en o u g h t o c a p ita li z e o n h u g e o p p o rtu n ity in w a te r a n d s p o rts d ri n ksAl te rs p ro duc t fla v or sto l oc a l ta s te s? O ff e rs e x istin g b ra n d s in f la v o rs w ith lo ca l a p p e a l– “ Fa n ta ” b ra n d is o ff e re d a s “ Fa n ta G o ld e n P in e a p p le ” in J a p a nIn c or por a te s