Case 1-3 Coke and Pepsi learn to compete in India
The specific aspects of the political environment are as followings:
The Indian government is unfriendly to foreign investors for a long time.
Indian government signed "The principle of Indigenous Availability" which forbid the imports of soft drinks because the soft drinks can be gotten from India domestic.
The economy liberalization of Indian government from 1991
Some of the political environment changes can be anticipated, but it may not be a long time ago from the change takes place and another condition is that the political environment must be relative stable in the target nation. For example, you can anticipate that Indian oil price will rise at the beginning of the first Gulf War, thus you may anticipate that Indian government may restrict the imports. Since you can not expect the Gulf War's happening in 1980, I said you can just expect the changes in a relative short time. And if the political environment is not stable, you can neither expect the changes. For instance, you can not expect the changes in Somalia.
And if we cannot expect the changes, we need to get a better understanding of the custom of the target nation, especially the culture of the nation. So we can deal with some problems we might face in a better way that the local people can accept. Or the negative choice is to leave the nation. I believe every company will not try to enter Somalia's market.
For the Pepsi which entered the market earlier:
It can get customer a better identify with its products
Got a bigger share in India than Coke from the first. When Coke is trying to enter, Pepsi has already taken a big share in the market.
Pepsi was forced to change its name because of law that prohibit the use of foreign names
Forced to do the drinks sale to a level that less than 25% and need to help do fruit and other business
Need to compete with local...