Pepsi Entry Strategy

The social style and culture affect on international business. One problem why Pepsi cannot rapidly grow in Russia is language and cultural barriers. The culture is traditional. There are not many people who have English knowledge. Moreover, confidential issue should be careful because everyone talks and share information to each other in their society. The other interesting point is that Russians are not get use to western style resulting to difficulty of working in western company. Russian system is flexible and no specific rule in some topics; for example businesses cannot get reference checks for their employments. Because of social factors, Russians are less interest in foreign business even though there are many western companies in Russia, so that it creates the difficult work for HR department when they want to hire efficient labor.

The first recommendation for this firm is to adopt a global policy and try and explore new markets so that market growth and market share can be expanded. In case of a firm entering an international market, it requires to analyze the nature of the market and suitably form its marketing strategies in alignment with its business strategy and decide whether it is more beneficial to adopt a global approach or use a strategy that is customized to suit the needs of the local customers.

Corporate level strategy is best described as an organization making internal changes to differentiate themselves from their competition. Evolving internally allows a company to develop competitive advantages over their competitors along with allowing the company to decipher what makes them unique. Internal changes can include but are not limited to creating a proprietary product or process, reducing costs, and partnering with other organizations. What makes a company unique is more formally referred to as core competency. Together, obtaining core competencies and competitive advantages can elevate an organization and create

The first risks of running business in India is consumer market risks that is also the common risk that faces in most multinational’s business strategy because different market have different demand, satisfying every demand in different country is a challenge. Thus, Indian market and huge customer demand are different from other country markets that need to be modified. Foreign company entering India market is tend to use the workforce at a lower cost as they predict that India has large workforce but illiteracy rates are high in Indian population. Furthermore, urban people in India are mostly self-employed and with increase in urban middle class incomes, the percentage of working women has decreased. Therefore, those well train English speaking workforce is lesser than the

Coca Cola and Pepsi are the brands with the highest brand equities. Both, Coca Cola and Pepsi have gone through the highs and lows of their business to reach that position. Coca Cola’s marketing has been changing over time with more and more products being added every day, while Pepsi has implemented several smart marketing strategies to improve its turnover and profits. So, let’s see what were the marketing strategies implemented by Coca Cola and Pepsi.

Costco: Alternative Corporate-Level Strategy for International Expansion by Alliance Costco is the largest wholesale operator and fifth largest retailer in the U.S. (Cisco, 2013). The company has established itself within the U.S. retail market while expanding its operations into global markets. The application of an alternative corporate-level strategy is to enable the company to grow in markets that are more competitive and thus provide a challenge to Costco’s expansion. The first task is to identify the most appropriate market for international expansion. Perhaps the two most attractive markets for international expansion are India and China.

Indians will often take longer than usual to get the U.S. company a contract, certificate, or document which can create a bottleneck (Hume, 2012). The bureaucrats holding up the progress expect a payoff for moving things along faster so having a local player or someone who knows how to weave in and out of bureaucracy in India may make business dealings easier. Hume (2012), suggests doing research beforehand to figure out who the right players are and be diligent. Other cultural nuisances when conducting business in India is their perspective on time. Indians don’t like to be ruled by a calendar or a clock so getting business done in a timely fashion is hard to accomplish. One of the frustrations with doing business in India is that the politicians have a great deal of power. If a person in office is in the process of being replaced and a company had business dealing with the previous person, business dealing will start over at square one with the new

That could jeopardize LE position of finding a partner in India, because the company would be exposed to share some of its secrets with them, and as the case states, they wouldn’t mind coping it in the future. Another difficulty the company will face is the two main competitors that are already doing business in India, Ador welding Ltd and ESAD India.

1. The political environment in India has proven to be critical to company performance for both PepsiCo and 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 arena have been handled better by each company?

The case discusses the strategies adopted by the soft drinks and snack foods major PepsiCo to enter India in the late 1980s. To enter the highly regulated Indian economy, the company had to struggle hard to 'sell' itself to the Indian government. PepsiCo promised to work towards uplifting the rural economy of the terrorism affected north Indian state of Punjab by getting involved in agricultural activities. In addition, it made a host of other promises that made its proposal very attractive to the regulatory authorities. The case also discusses the criticisms leveled against the company, in particular, criticism of its failure to honor

It is also important to consider the relations of the company with the government, that can make easier or more difficult the

1. What is PepsiCo’s corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments in 2008.

Strategic Alliance is the collaboration of two companies who came together to implement an idea that will benefit both parties (Strategic alliance, 2009). It is crucial that both parties understand what’s really at stake in order to make their partnership successful. In this paper, the writer took the time to analyze a partnership between Subway restaurants and Coca-Cola products. In addition, we will look at the economic benefit for each company. When dealing with businesses there is a potential for ups and downs during the operations process. The author will examine this collaboration between Subway and Coca-Cola while using Porter’s Five Forces framework including a PESTEL (Political, Economic, Social, Technological, Environmental and Legal) analysis of these two companies.

Where PepsiCo. entered into India as a Joint Venture with PAIC and Voltas, there are other numerous ways a company can enter a foreign market. They include, Exporting & Importing, Licensing & Franchising, Contract Manufacturing, Foreign Direct Investment, Equity Purchases, and Strategic Alliances.

I’m an undergraduate student majoring in economy prepared the marketing plan for the purpose of learning and experience.