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Essay / Research Paper Abstract
This is a 7 page paper which provides an analysis of the competitive position of PepsiCO in comparison to Coca-Cola in Mexico in 1993-1995.
The bibliography has 4 sources.
Page Count:
7 pages (~225 words per page)
File: D0_JHPeps.rtf
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Unformatted sample text from the term paper:
through 1995. The case explains the strategies attempted by PepsiCos senior management to expand PepsiCos market share against their major rival Coca-Cola. This particular case encompasses the
marketing, management, financial and business strategy which all seemed to deteriorate after the fall of the Mexican peso in December of 1884. PepsiCo reaction to the devaluation of the
peso only increased financial burdens which were already being experienced by the lack luster Pepsi market. BACKGROUND When Pepsi-Cola and Frito-lay merged in 1965, PepsiCo was founded (PepsiCo, Inc. 2006).
PepsiCo and Coca-Cola have long been known as the two major competitors in the world wide cola market. During all these years, PepsiCo had always lagged behind their starch
rival Coca-Cola. This was the situation in 1993, when PepsiCo felt that it was possible at that time to wage and win a war with Coca-Cola in Latin America.
In that year, both CEOs of each company felt that the Latin American Market was not yet developed to the point that there were no longer any opportunities there.
Among world soft drink markets, Mexico ranks second in size only to the United States (PepsiCo, Inc. 2006) At the onset, it appeared that PepsiCos aggressive approach to the competition
would ultimately result with PepsiCo becoming the leader in the cola competition in Latin America. Initially, the strategy implemented by PepsiCo seemed to be working. However, after the
devaluation of the Peso in Mexico and the issue of capital problem in other Latin American countries, PepsiCo market share began to fall. ERRORS IN STRATEGY The implementation of PepsiCo
strategy was to gain additional management control of its Latin American markets by choosing one strategic super bottler in each of the countries where they already had an established presence.
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