Coke vs Pepsi

Domestic firms in India which once enjoyed the benefit of sheltered markets are increasingly facing competition from global giants in the 1990s. Whatever route Indian firms take to deal with competition from MNCs, it is imperative for them to keep track of global strategies of these firms. Often the strategies undertaken at the local level are only part of the global strategies, because it is difficult for any firm to allow significant differences in approach in different markets. After the second coming of the international varieties of Cola drinks, the market has witnessed a highprofile tussle between the global giants - Coca-Cola and PepsiCo. This tussle and the respective problems faced by the two firms in the Indian market are extremely instructive. This paper argues that the events in the Indian soft drinks market can only be explained with reference to the global fight between Coke and Pepsi and their respective global strategies. Moreover, these two firms are so dissimilar that their relative successes and failures can throw light on some of the important issues in industrial organisation.