Recommendations of Coke Vs Pepsi 2001 Case Solution

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Recommendations of Coke Vs Pepsi 2001 Case Study Help

On the basis of above internal and external analysis of the company together with the examination of numerous options, the company is suggested to think about alternative 3. As alternative 3 would permit the business to expand in international markets with no decrease in its regional incomes and any deterioration of its market position. By considering Alternative 3, the company could preserve its shop experience and brand individuality. It might also think about alternative 2 that could permit the company to access the markets without any potential investment. Although, the business might pursue alternative 1 which would make it possible for the company to focus on potential worldwide markets instead of the regional markets but as the company is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would lead to the substantial decline in business's profits. For that reason, the business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Coke Vs Pepsi 2001 Case Solution Stores

Expansion towards worldwide markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although a good choice for increasing the international presence of the business. The closing of domestic stores might highly impact the revenues of the firm as above 90% of its shops are situated locally and closing those stores would eventually lower the revenues of the company. The company has a long term market position in US which can not be generated soon in the new markets. The choice would assist the company to broaden in worldwide markets together with the elimination of issues raised in its regional markets connected to its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Exploration of brand-new worldwide markets.
• Increase in profits from worldwide markets.
• Removal of issues associated with diversity.
• Revenue diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of extensive profits from the local markets.
• Increase in competitors.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Coke Vs Pepsi 2001 Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might pose a serious danger to the market share of company. In this circumstance the business might think about introducing Click and Recommendations of Coke Vs Pepsi 2001 Case Solution shops. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand name Originality
• Elimination of the fantastic store experience.
• Risk of decline in elite sales.

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

Another option that the company might consider, is to broaden towards the global markets without closing its domestic stores that adds to the major part of profits of the company. The pros and cons connected to Alternative 3 are given below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Increasing the size of customer base
• Big Revenues
• Exploration of new international markets.
• Boost in earnings from international markets.
• Profits diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of issues related to diversity.
• Distinctions in cultures might led to a failure of the brand especially in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to gain market share.



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