Coke And Pepsi Learn To Compete In India Essay

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DISCUSSION QUESTIONS: 1. The political environment in India has proven to be critical to the 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 specific aspects of the political environment that have played key roles are the form of the Indian government and the strong feeling of nationalism. The Indian government has very austere trade policies, rules and regulations that did not help both companies in entering the Indian market and promote their products. The factor of cultural nationalism has also played a major role. The Indian government would encourage the consumption of local products instead of foreign ones and this is what leads to control foreign investment. These effects could probably be anticipated if the two companies (especially Coca-Cola) have studied the political environment of India before entering the market. 2. 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? Timing of entry into the Indian market brought different results for PepsiCo and Coca-Cola India. Coca-Cola India had been present in India earlier (from 1958) but decided to close its business and leave after the Indian Government asked the company divulge their secret formula. Instead, Coca-Cola India preferred to shut down and leave in 1978. On the other hand, PepsiCo entered the Indian market during Coke’s 16 years of exile through joint venture with local bottlers. The benefits and disadvantages that accrued as a result of earlier or later market entry are: Coca-Cola India: The first entry of

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