pepsi
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Coca-cola and Pepsi had adapted a very different market entry mode into the China market. Coke has been very keen in early market entry approach, take North Korea for example. In China, Coke had entered into agreements with Swire and Kerry as foreign-partners and in turn they entered into co-op agreements with Chung Liang ( China Food ) as early as when China opened its door. This association has, sadly created a series of problem amongst the different partners. I shall explain that a little bit later.
Pepsi had adapted an one-to-one JV strategy at each operation, with an attempt to secure the Control of each aspect of the entire operation. Hence, Pepsi has been extremely selective in choosing its business partners in China and takes a long time before Pepsi would decide to open a new operation. The company is truly a "learning organization", learning the mistakes from each previous JV experience in China.
The Central Government had proclaimed that the Chinese market shall be divided equally between the two beverage giants, with each company to manufacture in 24 cities. Such agreements, taking into consideration of local government's eagerness to join in the game, would prohibit the two companies to compete, head-to-head in each city, except the four most developed cities, namely Beijing, Shanghai, Quanzhou and Shenzhen, where both companies can freely operate in its own rights...