Coca-Cola Company does not only rely on alliances as a strategy of entering new geographies rather it also believes in joint ventures. Joint ventures refer to where organizations join their hands together with to operate in new markets. This helps organizations to save on costs of operations. It becomes easier for companies to expand their operations in new markets if it uses internal corporate structures. Research have shown that Coca-Cola Company has mainly used the joint ventures when entering markets such as the Chinese market .The reason why multinational corporations decide to enter new regions through joint ventures is the exorbitant high transaction costs which have continually increased as time goes by. This cost in many cases is imposed by the market imperfections. Therefore, research has shown that it is less expensive to enter new markets by use of internal corporate structures. The use of joint ventures by Coca-Cola Company is advantageous because it has helped it to gain revenue as well as reduce costs of operations. This uncertainty may be a result of inadequate information about the operations of the market. When a company is uncertain, there is a high possibility that it can make wrong decisions. For Coca-Cola Company to enter the Chinese market, the company decided to use joint venture as the entry method in 1985 to 1992 (Tian, 2016). Coca-Cola Company found it wise to first to acquire the management rights to the bottling plants in China through the establishment of joint ventures.