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Essay / Research Paper Abstract
This 4 page paper looks at international business and answers a set of three questions. The first question considers the differences in the way that Nestlé and PepsiCo entered the Indian market and distributed their products. The second question discusses the different types of market entry which are available to a firm along with their advantages and disadvantages. The third question discusses which options may be best for a company. The bibliography cites 6 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TENesPepind.doc
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Unformatted sample text from the term paper:
the cultural influences on the market they enter. The balance of these two influences will vary between different companies and the countries they enter. The difference between companies can be
seen when looking at the way Nestle and PepsiCo have entered and operated within the India market. Question 1 - Distribution Strategies Nestle in India appears to have
been able to take local culture into account in the way that distribution strategy has been created. The country did not have major national supermarket chains, but a fragmented retail
sector. The firm adopted a policy of distributing smaller size stock keeping units and placed a great emphasis on the sales force (Anonymous, 2008). The strategy has varied depending on
the item being sold; there was great controversy over the way Nestle sold infant formula, promoting its use through direct sales of health care workers as late as 1977 (Bar-Yam,
1977). This direct approach and reliance on personal selling developed with the lack of the traditional distribution network infrastructure nestle were used to using in other countries. However, although the
firm appears to focus on the efficiencies, it appears that the firm has failed to adapt with the times. Recently it has been noted the firm has a sales force
that has pay rates significantly below peers (Mukherjee and Basu, 2010), indicating a failure to adjust to the current culture where wages are rising. However, it has also been noted
that the older members f the sales force are more stable and likely to stay, again indicating a shift in employee values. By comparison PepsiCo have followed an opposite pattern,
initially failing to sufficiently allow for culture and then adapting later. The firm sought to gain a mass market appeal, and by gaining the first mover advantage in the Pepsi
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