Internet Exercises


1			Looking at the ways of exporting Heineken http://www.heineken.com/ Proactive vs. Reactive Reasons for going international Heineken exporting because of stiff domestic competition Collaborative Relationships Heineken using a Joint Venture with a strong local business, to expand into a new region Export Modes Heineken using Licensing to expand exports Employing FDI - Foreign Direct Investment Heineken using acquisitions FDI to expand exports Read http://www.witiger.com/internationalbusiness/heineken.htm And Corporate homepage http://www.heinekeninternational.com/homepage.aspx Company & strategy http://www.heinekeninternational.com/companystrategy.aspx Heineken is carried in Canada by Molson's See YouTube's "I am Canadian" rant made famous by the Molson ad http://www.youtube.com/watch?v=BRI-A3vakVg




2			One might think that India is a cola maker's paradise. With a population of a billion plus, and cola consumption levels at just seven 8-ounce servings per year, the market should be nirvana for Coca Cola. Yet, India has been a challenge for Coca Cola. http://www.coca-colaindia.com/ After being forced out of the market by India's government 15 years ago, in 1993 Coca Cola reentered the market with ambitious plans to snatch market share from Pepsi and other local beverage companies. However, much to its chagrin, thus far, Coca Cola has been less than successful, suffering losses for several years. Now though, the company hopes that it finally has the right formula for success. The company is supporting local brand Thumbs Up that was acquired when Coca Cola returned to India in 1993. In addition, Coca Cola has dropped prices and introduced new bottle sizes in an effort to attract more buyers. Coca Cola is also cutting bottling costs by closing inefficient plants that were acquired as part of the Thumbs Up deal, and saving on import duties by buying more local raw materials. The decision of which foreign markets to enter, when to enter them, and on what scale are basic to any firm contemplating foreign expansion. How have these issues played out for Coca-Cola (www.cocacola.com) with regards to India? Discuss the concept of first-mover advantages and the effects of those advantages on Coca-Cola's ability to challenge Pepsi in the Indian market place. Explore Coca-Cola's history in the Indian market in more depth - see for example, http://www.rediff.com/money/2002/jul/20paran.htm. Why has the company had such a difficult time with India? In your opinion, should the company continue to pour resources into India in an effort to conquer the market? Why or why not? What can Coca-Cola and other companies learn from Coke's Indian experience? Check also a April 2008 story about protests demanding Coca Cola India shut its plant http://www.globalresearch.ca/index.php?context=va&aid=8591 Source: "Finally, Coke Gets It Right," Businessweek, 2/10/03, p. 47.

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