Coca-Cola is one of the most successful and profitable companies the US has ever seen. The Coca-Cola brand is known all over the world; people simply love their Coca-Cola. The company has a solid position in the US, but its financial team is always paying attention to emerging markets.
The company makes hundreds of decisions every week based on large amounts of data concerning consumption of their products, production costs, market demand, and much more. Coca-Cola isn’t afraid to make big investments or even purchase other companies if it fits their overall plan. They’ve been running on a successful platform for decades and it doesn’t look like they are going to stop any time soon.
Vietnam the Next Area for Coca-Cola
Of all the areas in the world that Coca-Cola has expanded to, many people would find it hard to believe that Vietnam is a location where Coca-Cola is investing. According to an AP story in Bloomberg Businessweek, “Coca-Cola Co. and its bottlers say they’re more than doubling their investment in Vietnam over the next few years.”
This is a strong sign that Coca-Cola is hedging its future success on the strength of emerging markets all over the world. Even though Coca-Cola has a strong foothold in many parts of the world, it doesn’t want to fall behind any of its competitors like PepsiCo. Vietnam is likely to see from 2010 to 2015 a total investment from Coca-Cola of $500 million!
In addition to the doubling of investments in Vietnam, Coca-Cola is spending billions in other important emerging markets. In India, the company is planning to invest “$5 billion over the next eight years.” In China, Coca-Cola will “invest $4 billion over the next three years.” Many companies are jumping at the opportunity to get involved in emerging markets. CFOs and their teams should be paying attention to these markets as well.
Learn from the Big Dogs
CFOs and their teams at companies large and small have a lot of tough decisions to make when it comes to investing profits. Perhaps they can learn something from the recent trend of the biggest US companies – like Coca-Cola – doubling down on emerging markets throughout the world.
As the world continues to become more connected than it ever has been before, opportunities are no longer local or even national. We have the technology now to make investments and have an impact all over the world. All it takes is research, data, and a little initiative to find the right opportunities. There’s a reason Coca-Cola and similar multinational corporations are as successful as they are. They go after profits where they are, they don’t wait for opportunities to come to them.
What do you think you can learn from the strategies of the big multinational corporations?