Why do you think Coca-Cola has agreements with many local bottling companies and does not own and operate all of the bottling plants it uses?

Coca cola has agreement with many local bottling Companies and it does not own and operate all of the bottling plants it uses because of their distribution strategy. The company is in collaboration with more than 200 bottling companies so that the drink reaches to the people worldwide.

These local bottling companies would ease the business and the availability of the product in a shorter duration.

The Coca-Cola does not own and regulate the bottling companies so as to allow them to work as they feel like. The local bottling companies identify the needs of the people and work accordingly. They have direct connection to vendors and restaurants who sell/provide coca-cola to their customers.

This strategy helps the company with reduced cost of maintaining assets and labour for the production and design of bottle, transportation cost, etc. It reduces the time of top level managers of coca-cola and they can only focus upon maintaining the brand image worldwide by outsourcing and developing relations with various nations.