Pepsi Wants to Globalize Case

Topics: India, Government of India, PepsiCo Pages: 1 (755 words) Published: January 17, 2013
PEPSI WANTS TO GLOBALIZECASE
STUDY OF INDIABYCHAUDHRY SHAHID MEHMOOD
GUILDHALL COLLEGE

 
Q.1 Why do companies like Pepsi to globalize? What are the various ways in whichforeign companies can enter a foreign market? What hurdles and problems didPepsi face when it tried to enter India during the 1980?Answer. Globalization is a term that refers to the acceleration and intensificationof mechanisms, processes, and activities that are allegedly promoting globalinterdependence.Pepsi like other big companies also wants to globalize the market because of certain facts. Firstly, globalization territorial boarder is now almost instantaneous.Secondly, communication technology have improved access to overseas markets andstreamlined both production and distribution of goods. Thirdly, companies can address anoffshoring strategy as part of their value chain. Companies seeking to keep operationalcosts low and turn a profit will benefit from sending certain jobs abroad in areas whereconducting business is less expensive.India was a big and profitable market and its owm economy was not much strongand wealthy. It provides opportunity to create a monoply in foreign markets.Foreign companies adopted different ways to access the foreign markets, it tries tocreate lobbies with the governments to obtain permission to being operation in thecountry. It also tries to give the attractive package for government related to inverstmentsand profit.Pepsi faced many hurdles and problems when it was trying to enter the Indiaduring the 1980s because India political parties and government were not agree toglobalized the Indian market. They were feeling fear for the monoply of the foreign products, and also feeling insecurity for their own manufactured good. Even the General Secretary of one of the indian political paties, Janata Dal, wrote the letter to the Presidentof multi billion-cola company and wrote, you are coming here. I am the one that threwCoca-Cola out, and we are soon going to come...
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