Foreign direct investment in transition economies: The case of Coca-Cola in Russia

The paper advances several theoretical and practical developments underlying the foreign direct investment episodes of multinational corporations in transition economies, most particularly Eastern Europe. Following this, arguments are developed and discussed concerning the liberalization of the Russian economy and the changing consumer, management, organizational, and investment traditions therein. A case example of the Coca-Cola Company in Russia is both presented and analyzed. Reference is made to the experience of this company concerning its: market entry; market development; market expansion; strategic problems and barriers to expansion; and, late versus first-mover advantages in an emerging market of this transition economy. Various conclusions are drawn from this case and inferences are made for theoretical developments and company strategy in the specific field of foreign direct investment in transition economies.