Pepsi Political Environment Analysis

Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo. Created and developed in 1893 and introduced as Brad 's Drink, it was renamed as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961, and in select areas of North America, "Pepsi-Cola Made with Real Sugar" as of 2014. Pepsi is a carbonated cola soft drink that copied Coca-Cola after 12 years of its existence. Coca-Cola is a carbonated soft drink. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out

Some aspects were adjustments in the Indian government like new procedures set of laws and a closed system, change in the names of each company (Lehar Pepsi & Coca-Cola India), problems with the water contamination, the policies that excluded international companies, boycotts of American goods, low demand for carbonated drinks and prohibition of imports. (Essays, UK. November 2013) The main specific aspects of the political environment in India has been seen as unfriendly to foreign investors for many years, The "Principle of Indigenous Availability" (Policy banning imports being sold in India), The Liberalization of India 's Government in 1991("New Industrial Policy", Trade rules & regulations simplified, Foreign investment increased), Pepsi enters in 1986 became "Lehar Pepsi", Coca-Cola follows in 1993 became "Coca-Cola India". (Essays, UK. November 2013) These effects can not affect the role of the market. Coca-Cola could have agreed to start new bottling plants instead of buying out Parle, so there is no agreed to sell its 49% of their equity. They could foresee the level of corruption that is present in India, and after entering the market to reduce the difficulties that they faced. However, the contamination issue couldn’t have been anticipated, but during the legal process they shouldn’t have stayed quiet because it is taken as a sign of guilt,

When an organization has made a significant decision to enter into the foreign markets, there are many options in relation to entry modes it must consider. The option to associate to each are vary from the costs, risks and control measures. Coca-Cola entered the market as one of the competitors are ready to align with Coca-Cola while Pepsi struggled. 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. (Louloua, 2012, February 3) In contrast, Coca-Cola India preferred to close and leave in 1978. On the other hand, Pepsi entered the Indian market during Coca-Cola Company’s 16 years of exile through joint venture with local bottlers. Both companies’ timing of entry are lead them to encounter different reactions. Pepsi enter early than Coca-Cola so it must be different in advantages and disadvantages between both companies in timing of entry into Indian Market. The advantage of Pepsi are it could enter into market before Coca-Cola and was able to gain a foothold in the market while it was still developing and it gained 26% market share by 1993. (Hufg1983, 2011, October 5) Pepsi become the first of the largest beverage companies to enter into the market helped it a lot and it might have restrictions if Coca-Cola had been in the market at the time. India is a big an untapped economy and was a developing country and have a huge population of over 1