Coca Cola and Pepsi did encounter some difficulties in entering the India market. Coca Cola though was the company with the most obstacles.
1. I think there are many different things that should be taken into consideration when you are trying to find out which issues that have attempted Coca Cola and Pepsi to “succeed” in India. It is a combination of controllable a non-controllable elements where the non-controllable elements play a more significant role in attempting Pepsi and Coca Cola to succeed in India.
If we look at culture differences between the two countries from Hofstede´s index perspective we will see important cultural differences .
The Hofstede’s index shows that India has a low IDV(48) score, a low UAI(40) score and a high PDI score(77). The fact that India has a low level on individualism score could give problems, because India has a more collective focus and act more like group compared with the USA. USA and India are totally different when it comes to the cultural status and society. In the case it shows that sales of Pepsi and Coca Cola products were decreased by 50% in the southern Indian state of Kerala, because people boycotted the products due to the Iraq invasion in 2003. This shows the effectiveness of boycotting and strikes because it can easily benefit the collective in the organization. This is a good example of loyalty to the “organization” which in this case is the local society. The high power distance can result in that subordinates have lesser to say and they are not to question authority, which could be why nobody protested against the boycott of American products. The uncertainty avoidance index is almost the same as in the USA, therefore it does not direct create obstacles, as long as religion and cultural d ...