Coca-Cola's Challenge in China: "Healthy" Growth
Coca-Cola was one of the first MNCs to enter post-reform China. The soft-drink manufacturer established robust market share on the back of a strong brand. Chinese consumer preferences, however, gradually changed: they preferred "healthy" drinks over soft drinks. As a result, Coca Cola's competitive position eroded as foreign and domestic competitors released new products. After a failed high-profile M&A attempt, Coca-Cola faced a strategic challenge: develop new products in-house or attempt to acquire them?