Environment Analysis
Introduction of Coca Cola in China was possible with the help of a couple favourable internal factors and macro international factors determined by the globalisation.
Political
The Chinese Communist Party (CCP) has governed since 1949 when they have changed from Republic of China into People`s Republic of China.
During these years the political system and political institutions of China has evolved all thank to CCP will to adapt to the macro environmental factors and bring the country to the present when is expected to become number one economy in the world.
In 1976 Deng Xiaoping came to power after Mao Zedong’s death. The new leader who had an Open-Door vision and the US president Carter reopened diplomatic relationships who allowed for major American brands to enter the market. One of these companies was Coca Cola, their red colour bottle was seen with good eyes as is used the same theme as the CCP flag.
The Party keeps a control on power and is intolerant with those who challenge them or don’t obey their rules.
Coca cola was reintroduced in China in 1979 after missing from the Chinese market for over 35 years. Allot of the young generation did not knew anything about the mystery drink which vanished from the Chinese market since 1949 when the Coca cola factories where nationalised.
Mark Pendergrast (author, For God, Country & Coca-Cola): Coca-Cola was an archetypal symbol of Western capitalism and consumerism, which the Chinese Communists presumably