Global Business Management (Innovative Business Textbooks) by Abel Adekola and Bruno S. Sergi

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By Abel Adekola and Bruno S. Sergi

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How have those competitors been affected by Kola Real? Why could competition hurt the profitability of Pepsi and Coca-Cola even if the two companies were able to maintain their market share? 3. Compare and contrast Kola Real’s distribution strategy, advertising, and its relationship with retailers as compared to Pepsi and Coca-Cola. How is Kola Real’s brand image perceived in comparison with Pepsi and Coke? 4. Sometimes companies face barriers to entry in marketing and manufacturing a product. Why was the use of glass bottles a significant barrier to entry?

Annexes to the above agreements were the agreement on trade-related aspects of intellectual property rights (TRIPS); dispute settlement understanding (DSU) for resolving trade quarrels and ensuring that trade flows smoothly; and agreement on trade-related investment measures (TRIMS) which apply to any measure that discriminates against foreigners or foreign products by trying to avoid certain measures that can restrict and distort trade, such as those measures that require particular levels of local procurement by an enterprise (local content requirements) or that limit a company’s imports or set targets for the company to export (trade-balancing requirements).

However, while the rest of Peru despaired at the Shining Path’s campaign of terror in the late 1980s, Eduardo and Mirtha Ananos spotted an opportunity. Rebels routinely hijacked trucks bringing Coca-Cola to the city, so the couple decided to start making cola in their backyard and sell it to locals. Together with their five sons, they took out a mortgage on their home and started the business with $30,000. Today, Kola Real is emerging as an unlikely threat to both Coca-Cola Co. and PepsiCo Inc. in a region where the two soft-drink giants enjoy some of their fattest global profit margins.

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