when doing 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
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Case Study: Coke & Pepsi learn to compete in India Timing of entry into the Indian market brought different results for PepsiCo and Coca-Cola India. What benefits or disadvantages accrued as a result of earlier or later market entry? Coca-Cola (1990) Benefits: advantages as „Early-Follower“‚ possibility to use reliable market information that´s already existing take-over of standards position as international market leader Disadvantages: expert knowledge of competitors has to be overtaken
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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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CeCe Miyagawa Professor Preston Cameron SBU200 Society and Business October 15‚ 2014 Case Analysis – Case#16 Coke and Pepsi in India: Issues‚ Ethics‚ and Crisis Management Introduction This case delves into whether or not Pepsi and Coke are equal targets in India. It questions whether the companies are doing their ethical duties‚ as well as whether they are managing crises and stakeholders well. The Real Problem The real problem is whether or not these companies are doing their duties to their
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Cola Wars Continue: Coke and Pepsi in 2006 CSD Industry Overview Coke and Pepsi‚ the two main players in the duopoly market‚ have benefited from average growth of 3% since 1970 in the CSD market. There are many substitutes to CSD’s such as; milk‚ coffee‚ bottled water‚ beer‚ juices‚ tea‚ wine‚ sports drinks‚ and tap water yet American’s drank more soda than any other beverage. Coke and Pepsi competed fiercely for market share and this competition built brand recognition for both companies. Continuous
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Kowalski XACC/280 22July12 Dr. Edward Walden University of Phoenix a) PEPSICO‚ INC. Trend Analysis of Net Sales and Net Income For the Five Years Ended 2005 Base Period 2001—(in millions) | | | 2005 | | 2004 | | 2003 | | 2002 | | 2001 | | | | | | | | | | | | | (1) | ------------------------------------------------- Net sales Trend | | $32562 | | $29261 | | $26971 | |
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Cola Wars Continue: Coke and Pepsi in 2010 Consider the CSD industry. Have Coke and Pepsi’s profits historically been high? Do you consider it surprising or not surprising given the product they produce? In the CSD industry‚ the highest net profit-sales ratio of Coke and Pepsi are 21.1% and 14.3%‚ and the steadily growth is also surprising.so the profits are high. The content is water‚ Coke syrup‚ CO2‚ and additives‚ which cost about 10 cents per can‚ nearly next to nothing. What are the primary
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Spenser Garrison Strategic Management 3/17/10 Case 1: Cola Wars Continue: Coke and Pepsi in 2006 The soft drink industry is very competitive for all companies involved. Recently the competition between established firms has only increased with the market nearing its saturation point. All companies in the industry‚ especially those thinking about entering‚ have to think about Porter’s 5-Forces model and the pressures it outlines; rivalry among establish firms‚ risk of entry by potential
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Dan Sweeney March 7‚ 2012 1. & 2) Short-term: The quick ratio‚ also known as acid-test ratio‚ calculates a company’s cash and accounts receivable divided by its current liabilities. This ratio is a more stringent measure of liquidity than the current ratio in that it excludes inventories and other current assets. Pfizer has a quick ratio of 1.78 while the industry median is 1.21. This shows the company does not rely too much on inventory of other assets to pay for short-term liabilities.
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COLA WARS : COKE AND PEPSI IN THE 21ST CENTURY” INTRODUCTION "Cola Wars Continue: Coke and Pepsi in the 21st Century” explains the economics of the soft drink industry and its relation with profits‚ taking into account all stages of the value chain of the soft drink industry. By focusing on the war between Coca-Cola and PepsiCo as market leaders in this industry – with a 90% market share in carbonated beverages – the study analyses the different stages of the value chain (concentrate producers
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