Pepsi's Entry into India

Paper Summary:

This paper analyzes the successful entry of Pepsi into India. The paper discusses the significant cultural, legal, political and economic factors that Pepsi had to overcome in order to successfully gain entrance into the Indian market. The paper also looks into the need for advanced planning, strategies for ensuring that local and national governments see value from the joint venture and the development of realistic shared ownerships schedules and scenarios.

Table of Contents:
Executive Summary
Assessment of Case
Success for Pepsi: Joint Ventures Lead to Social Change
Analysis of Global Expansion Strategies by Pepsi
Summary

From the Paper:

"The approach of concentrating on the unmet needs throughout the Punjab province turned Pepsi from the role of global marketer to local provider of increased services. It also made the concepts of JV and shared ownership more aligned to the more pressing social and community needs, areas where the Indian government struggled with change. The Indian government has yet to invest in large scale infrastructure such as job programs the development of production and manufacturing standards, and has at times seen failures of multinational corporations (MNCs) attempting to capitalize on the low wage rates in the country. MNCs have attempted to view India as a secondary China in terms of manufacturing potential, yet have been unsuccessful at making large scale manufacturing work in the nation due to the tariffs and constraints on manufacturing overall. With the liberalization of foreign ownership in 1994, Pepsi was able to gain ownership of the Voltas share of the JV."

Sample of Sources Used:

• Bhavna Rathore. "The Indian drinks industry 2006: Management briefing: Soft drinks." Just - Drinks : The Indian drinks industry 2006 Management briefing 1 Sep. 2006: 13-16. ABI/INFORM Global. ProQuest. 12 Apr. 2008. www.proquest.com

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