Recommendations of Coke Versus Pepsi 2001 Case Solution

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Recommendations of Coke Versus Pepsi 2001 Case Study Solution

On the basis of above internal and external analysis of the company along with the assessment of numerous options, the company is recommended to think about alternative 3. As alternative 3 would enable the business to broaden in international markets without any reduction in its regional earnings and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the local markets however as the company is extremely reliant on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Coke Versus Pepsi 2001 Case Help Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian countries with closing domestic shops is although a great option for increasing the global presence of the business. However, the closing of domestic stores could extremely affect the revenues of the firm as above 90% of its shops lie locally and closing those stores would eventually reduce the incomes of the firm. Moreover, the company has a long term market position in United States which can not be generated quickly in the new markets. The choice would help the company to broaden in global markets along with the removal of concerns raised in its regional markets related to its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Increase in income from global markets.
• Removal of issues connected to diversity.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial revenues from the local markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Coke Versus Pepsi 2001 Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present a serious risk to the market share of business. In this circumstance the company might consider introducing Click and Recommendations of Coke Versus Pepsi 2001 Case Analysis shops. These shops with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competitors risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand Originality
• Elimination of the great shop experience.
• Danger of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the business could think about, is to broaden towards the international markets without closing its domestic stores that adds to the major part of revenues of the business. The benefits and drawbacks associated with Alternative 3 are given below;

Pros:

• Decreasing competition hazard
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Expedition of brand-new international markets.
• Increase in income from worldwide markets.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

• Extension of problems connected to diversity.
• Differences in cultures might caused a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



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