Pepsi Entry Into India

1. Why do companies the like PEPSI need to orbicularize? What atomic number 18 the various ways in which hostile companies can go in a foreign market? What hurdles and problems did Pepsi face when it try to get down India during the 1980s? Companies like Pepsi need to be global for the following: * Expand Sales- Increase the market for their deed by tapping potential new countries * Minimize Risks- Globalization and International profession also helps in minimizing risks. * To leverage on technology * To increase production efficiencies * For diversification so as to reduce risks * To counter foreign investments by competitors * Minimize Costs and optimal resource utilization- By shifting operations in areas with cheaper labour and resources. Companies can enter foreign markets through the following ways: * Export * Joint Ventures * Mergers and Acquisitions * Licensing, franchising * strategic Alliances * Management Contracts * Contract Manufacturing * FDI Hurdles faced by Pepsi: * India macrocosm a closed economy till 1991, there was soaring level of intervention by the government in the incarnate sphere * Low awareness, demand and consumption for soft drinks.

The per capita consumption was that 3 per annum * Foreign brand name could not be used * There was no liberalization and this not even 1% FDI was allowed. * Sensitive political and social problems in the country like terrorism * Cola concentrate the major ingredient to earn Pepsi soft drink could not be imported * Agriculture sector was the priority and thus Pepsi had to win the government by make promises of development in the agriculture sector 2. Critically, analyze the strategy choose by Pepsi to sell itself to the Indian government. Do you think the biggest means responsible for the acceptance of its proposal by the regulatory regime was its projection of its operations as the solution to many of Punjabs problems?... If you want to get a full essay, order it on our website: Orderessay

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