2- The early entry to the Indian market by PepsiCo had its disadvantages because at that time government policies over foreign companies was harsh such as aggressive pricing policy‚ struggling to fight off local competition but the only advantage that they were there first before Coca-Cola. The reentry of coca-cola in the market had its disadvantages and of course that was Pepsi co was there first their applications was approved and coke was turned down. 3- Coca-cola made special promotions
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While Pepsico and Coca-Cola are both multinational corporations (MNCs) with extensive experience in international operations‚ their business dealings in India are not their most long held nor the least problematic. Pepsico has the most longevity in Indian operations having started there in 1988. This allowed Pepsico to establish a stronghold in the Indian market prior to Coca-Cola’s entry in 1993. Both of these MNCs experienced difficulty in establishing their companies‚ and while they have made
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As a guide use exhibit 1.3 and its description in chapter 1.and do the following. 1.Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. 2.What are the major sources of risk facing the company and discuss potential solutions. 3.Critique Starbucks overall corporate strategy. Introduction of Starbucks. Starbucks is one of the largest chains of coffee shops in the world. They started their business in the early 80s as a tiny
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In 2003‚ Jagdeep Kapoor‚ chairman of Samsika Marketing Consultants in Mumbai (formerly Bombay)‚ commented that "Coke lost a number ofyears over errors. But at last it seems to be getting its positioning right." Similarly‚ Ronald McEachern‚ PepsiCo ’s Asia chief‚ asserted "India is the beverage battlefield for 2003." The experience ofthe world ’s two giant soft drinks companies in India during the 1990s and the beginning of the new millennium was not a happy one‚ even though the government had opened
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1. The Political environment in India has proven to be critical to company performance for both PepsiCo & Coca-Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not could developments in the political area have been handled better by each company? Ans: The primary barrier to Pepsi and Coca-Cola’s entry into the Indian market was its political / legal environment as a result of its history. Despite
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Coke and Pepsi Coke and Pepsi are both two big companies in the world which are known by cola. Pepsi is the biggest competitor of coke. The Coca-Cola Company is the world’s largest manufacturer‚ distributor and beverage company.(No author‚ 2009-6-26) Pepsi company is also a transnational corporation with long history. Each of them has big market in the world. However‚ a comparison of Pepsi and Coke reveals several similarities but a great number of differences. Coke and Pepsi are similar
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Coke and Pepsi in the Twenty-First Century: Threat of Entry:low 1. Economies of scale - High production volume but merit not clear (1st paragraph on page 2) 2. Product differentiation - Brand identification (high advertising expense‚ Exhibit 2) 3. Capital requirements - CPs: little capital investment (1st paragraph on page 2) - Bottlers: capital intensive (2nd paragraph on page 3) 4. Cost disadvantages independent of size - No 5. Access to distribution channels - Food stores (35%): intense
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business in developing countries. Although Coke and Pepsi were prompt at addressing the accusations brought against them‚ they overlooked multiple issues when starting business in India. When starting a business in a foreign country‚ the first priority a company should have is to learn the native culture. This was Coke and Pepsi’s biggest mistake and was most likely the reason why the Indian population responded so hostilely. Coke and Pepsi’s problems in India were complicated by the fact that water
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Case Study: Coke and Pepsi in India: Coca-Cola controlled the Indian market until 1977‚ when the Janata Party beat the Congress Party of then Prime Minister Indira Gandhi. To punish Coca-Cola’s principal bottler‚ a Congress Party stalwart and longtime Gandhi supporter‚ the Janata government demanded that Coca-Cola transfer its syrup formula to an Indian subsidiary. Coca-Cola balked and withdrew from the country. India‚ now left without both Coca-Cola and Pepsi‚ became a protected market. In the
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Pepsi is a manufacturer or use manufacturers‚ market and sell a variety of salty‚ sweet and grain-based snacks‚ carbonated and non-carbonated beverages‚ and foods through their North American and international divisions. B) Coca-Cola has the dominant position in beverage sales. C) Coca-Cola 2006 $29‚963‚ 2007 $43‚269 The difference is $13‚306 for a 44.4% increase. Pepsi 2006 $29‚930‚ 2007‚ $34‚628 The difference is $4‚698 for a 15.6% increase. D) Pepsi had
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