Final answer:
Selling Coca-Cola under the same brand name globally establishes strong brand recognition and customer trust, creates barriers to entry for competitors with its high brand equity, and utilizes a bulk-gaining strategy to optimize manufacturing and distribution by franchising bottling to local markets.
Step-by-step explanation:
Selling Coca-Cola in many countries under the same brand name allows the company to enjoy a multitude of market advantages. A consistent brand across various markets helps in building strong brand recognition and customer loyalty, which in turn can create significant barriers for new competitors. High brand equity discourages competition because it signals that conquering the established brand would require immense marketing efforts and expenses, often more than the promotional budgets of leading brands such as Coca-Cola and Pepsi.
In addition, national brands like Coca-Cola that provide consistent quality worldwide protect their reputation and maintain customer trust, thereby reducing opportunities for miscommunication and fraud that can arise from sales personnel setting their own product standards. With a centrally controlled brand image and product standards, Coca-Cola ensures that its products meet the same quality expectations globally, which is important for maintaining its strong market position.
Lastly, Coca-Cola's business model of shipping concentrated syrup to local franchises for final bottling uses bulk gaining to its advantage. This strategy minimizes shipping costs since the main input, water, is available locally, and the final product is heavier and more expensive to transport. It also ensures localized tastes are catered to, since the product can be slightly altered to meet local preferences. All these factors help in cementing Coca-Cola's position as a top player in the global beverage industry.