Read case study: “A Low-Budget Cola Shakes Up Markets South of the Border” on p. 15 in “Chapter 1: International Management and Cultural Perspective” in the e-textbook: Adekola, A., & Sergi, B. S. (2007). Global business management: A cross-cultural perspective. Aldershot, England: Ashgate. E-textbook: Latin Pop
In a 1,000 word paper answer the case questions below and provide a detailed critique about Kola Real’s management strategy, and determine their effectiveness based on what you have learned in the case and the course.
How did the Ananos family decide to make and market Kola Real? What business strategy did this start-up company adopt? Was it successful? Explain.
What motivated Kola Real to expand into Mexico? Who are its major competitors? 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?
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?
Sometimes companies face barriers to entry in marketing and manufacturing a product. Why was the use of glass bottles a significant barrier to entry? How can exclusive contracts with distributors act as a barrier to entry? Are there any other barriers to entry illustrated in the article? How did Kola Real benefit when some of the barriers to entry were removed?
Despite its lean operation, what challenges does Kola Real face as it tries to compete with Pepsi and Coca-Cola? Do you think the major company should be worried? Explain.
Be sure to provide a detailed analysis and critique about Kola Real’s management’s strategy and their effectiveness using what you have learned in the course.
Include an APA title page and at least two references in APA format.
https://pages.stern.nyu.edu/~jczepiel/mbacore/cokepepsi/Latin%20Pop.pdf
