India Soft Drink

India soft drink industry
Module code: SM0269
Module name: Global and International Business Context
Name: Javier Garrido San José Studen id: w11030200 Word count: 3.130 words

Table of contents
TaskA…………………………………………………………………………………………………………………1-10
1. Introduction 1
2. PEST 1
2.1 Political 1
2.2 Economy 2
2.3 Socio-Cultural 3
2.4 Technological 4
3. Porter National’s Diamond 4
3.1 Factor Conditions 4
3.1.1 Market Size 4
3.1.2 Linguistics 5
3.1.3 Raw material12 5
3.1.4 Workforce 5
3.1.5 Market type 5
3.1.6 Market forecast14 6
3.2 Demand Condition 6
3.2.1 Market size 6
3.2.2 Customers 6
3.3 Firm Strategy, Structure and Rivalry 7
3.3.1 Structure of themarket 7
3.3.2 Rivalry 7
3.3.2.1 The Coca Cola Company 19 7
3.4 Related and Supporting Industries 8
3.4.1 Aluminium Industry 8
3.4.2 Water 8
3.4.3 Marketing agency 9
3.5 Government 9
3.6 Chance 9
4. Final conclusion 9
4.1 Investment in India 9
4.2 Product 10
4.3 Factory 10
TASK B 10-11
REFERENCES 12
Appendix 14

Task A
1. Introduction
The aim of the following text isto understand the India soft drink market and clarify if the multinational company must move to do business in India or on the other hand, is it beneficial not to expand in that area yet. The procedure will first analyse the country, making a PEST report, and then analyse more precisely the soft drink market with Porter´s National Diamond theory.
2. PEST
The PEST analysis is based on the theoryof macro-environment factors1. With this theory, the company can analyse all the different influences that affect not only the market, but also the entire county.
2.1 Political
India is one of the biggest democracies in the world; the government type is a federal republic. In addition, India has adopted the British style parliamentary system2.
India has already found total economicliberalisation, because the government have realized that economic liberalization brings country growth and social growth. The economic liberalization has been carried by several reforms3. In 1991 the government decided to reduce the corporate tax for non-Indian companies from 64% to 40%, and the corporate tax for Indian companies from 55% to 30%. This action has favoured the foreign investment, eitherdirect investment with new factories or companies, or indirect investment with Joints-Venture or Business Cooperation Contracts (BCC).

(This graph shows the increment of foreign direct invest in India, between 1990 to 2007)
In summary and according to the data, the actions taken by politicians provide India with the investment necessary for growth and to become a developed country.
2.2 EconomyIndia is one of the fastest growing economies in the world; the country is the 4th largest economy in the world, with expectations to overtake Japan (3th largest economy) in 20154. The Gross Domestic Product has been positive for the last 5 years. The Gross Domestic Product (GDP) in India increased by 6.9 percent in the third quarter of 2011. Historically, from 2000 until 2011, India's averageGDP Growth was 7.45 percent, coming to a historical high of 11.80 percent in December of 2003 and a minimum of 1.60 percent in December of 20025. Actually India is 10th on the ranking of GDP with $1.846 trillions and the 3rd country in the rank with Purchasing Power Parity $4.47 trillions.
(The next graph shows the Gross Domestic Product in the last 5 years)

India’s economies share the GDP onthe next percentage per sector. The agriculture sector employed 52,1% of the total workforce, which is a traditional village farmer with some new modern agriculture systems and handicraft. Actually ranks second in worldwide output in agriculture. The Industry sector was characterised by technological things like the automobile...