Compare And Contrast Coca Cola And Ruth's Chris

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Coca Cola (older established beverage company) and Ruth's Chris (fine high end beef eating restaurants) are very different. Since their product offerings and clientele differ greatly they both required tailored approaches to market expansion. Both had foot prints internationally; both are leaders in their respective industries with brand recognition. With Ruth's Chris very successful IPO in 2005 both had access to capital to invest in market expansion. There are typically four areas for market expansion; product development, diversification, penetration, and market development. What business you are in, what brands you have, and the type of products you offer will influence the type of market expansion that best fits the business. Coca Cola is giant in all the areas noted above when it comes to market expansion but what both companies had in common was the recognition that "Market development” was essential to revenue growth. Ruth's Chris settled on only one strategy model "Market development”, more of the same restaurants in new international markets. In 2005 they had four very successful international markets - Canada, Hong Kong, Mexico and …show more content…

Coca Cola is more interested in penetrating all markets and is willing to invest heavily in areas that will support distribution to emerging markets like South Africa. Coca Cola does this by establishing bottling plants as close to their consumers as possible. This puts the production and distribution (and jobs) directly in the hands of the local territories; this allows communities to be invested in the success and distribution of Coca Cola. As an example; in South Africa they have the first all-Black managed bottling plant which has won Coca Cola a tremendous amount of respect and continues to perpetuate brand loyalty in that region. This Model has allowed Coca Cola to expand to 56 countries with 160 plants alone on the African

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