BUSINESS ENVIORNMENT

What is Business Environment?

BUSINESS - An organization of enterprising entity engaged in commercial,
industrial, or professional activities.

ENTERPRISE - Surroundings or conditions in which people, animal, plants

operates.

Business Environment consists of all those factors that have a bearing on the
business.

• Environment
• Internal
• External
• Micro
• Macro

Why study Business Enviornment :-

1. Understanding the Playing Field

2. Spotting Opportunities and Threats
3. Strategic Decision-Making
4. Adaptability and Resilience

Macro environment (Nature,Society,Economy)- Environmental

Political
Economic
Socio-cultural
Technical
Legal
Micro environment (Stakeholders)–
Competitors
Customers
Suppliers
Shareholders
Communities
Media
Organizational environment(Business Organisation) –
Resources
Structures
Culture
Behaviour

PORTER’S FIVE FORCES :-

1. Threat of New Entry
Potential competition tends to be high if the industry is profitable or critical,
entry barriers are low and expected retaliation from the existing firms is not
serious.
Government Policy
Economics of scale
Cost Disadvantages
Product differentiation
Monopoly elements
Capital Requirements

2. Rivalry among Existing Competitors

Firms in an industry are “mutually dependent” – competitive moves of a firm
usually affect others and may be retaliated.
For Example: Price changes, promotional measures, customer service,
warranties, product improvements, new product introductions, channel
promotion etc.
• Number of Firms and their Relative Market Share, Strengths etc.
• State of Growth of Industry
• Fixed or Storage Costs
• Product Standardization and Switching Costs
• Exit Barrier
• Diverse Competitors
• Switching Costs
• Expected Retaliation

3. Threat of Substitutes
Bargaining power of the buyers is also weak for patented drugs because of no
or limited alternative

4. Bargaining power of buyers

Buyers compete with the industry by forcing down prices, bargaining for higher
quality or more services
 1. The volume of purchase relative to the total sale of the seller.
2. The importance of the product to the buyer in terms of the total cost.
3. 3. The extent of standardisation or differentiation of the product.
4. Switching costs.
5. Profitability of the buyer (low profitability tends to pressure costs down).
6. Importance of the industry’s product with respect to the quality of the
buyer’s product or services.
7. Extent of buyers’ information.

5. Bargaining Power of Suppliers

1. Extent of concentration and domination in the supplier industry.
2. Importance of the product to the buyer.
3. Importance of the buyer to the supplier.
4. Extent of substitutability of the product.
5. Switching costs.
6. Extent of differentiation or standardisation of the product.

CONCLUSION :-

• Knowledge of these underlying sources of competitive pressure

highlights the critical strengths and weaknesses of the company
• Animates its positioning in its industry.
• Clarifies the areas where strategic changes may yield the greatest
payoff.
• Highlights the areas where industry trends promise to hold the greatest
significance as either opportunities or threats.
• Understanding these sources will also prove to be useful in considering
areas for diversification
• Structural analysis is the fundamental underpinning for formulating
competitive strategy.

SWOT analysis
The environment might present many opportunities, but a company might not
have the strengths to exploit all the opportunities. Similarly, sometimes a firm
will not have the strength to meet the environmental threats. If a company,
thus, finds that it will not have the competence to survive in a particular line of
business, it will be prudent to give it up and concentrate on such
business/businesses for which the firm is most competent.
 Strategic management process involves
determining the mission and objectives,
analysis of the environmental
opportunities and threats and evaluating
the strengths and weaknesses of the firm
to tap the opportunities or to combat the
threats, formulating strategies to achieve
the objectives on the basis of the SWOT analysis, choosing the most
appropriate strategy, implementation of the strategy and reformulation of the
objectives or strategy, if needed.

ENVIRONMENTAL ANALYSIS AND STRATEGIC MANAGEMENT :-

Steps in strategic management
1. SWOT
2. Strategic Alternatives and Choice of Strategy
3. Effective Implementation
4. Evaluation
Strengths and weaknesses of the company.
the opportunities and threats in the environment
is the cornerstone of business policy formulation and in the strategic
management.
Holistic understanding of internal-external business environment nexus.
It is these factors that determine the course (s) of action to ensure the survival
and/or growth of the firm
SWOT changes BE constantly. International Product Life Cycle model that
certain products which were exported in the early stages of the product life
cycle by high income countries like the USA were later imported by them

SWOT – Strength , Weaknesses , Opportunities , Threat

PESTLE – Political, Economical , Social, Technological ,Legal , Enviornmental

Pestel :-
A PESTEL analysis is a strategic framework commonly used to evaluate the
business environment in which a firm operates.
The framework is used by management teams and boards in their strategic
planning processes and enterprise risk management planning.
PEST Analysis for assessing impact

Classify the factors employing PESTEL Analysis in a matrix

1. Changing consumer lifestyles and preferences
2. Cybersecurity Threats
3. Tax policies
4. Foreign Exchange rates
5. Political tensions
6. Cultural diversity
7. Unemployment rate
8. Climate Change/ variability
9. Health consciousness and trends
10.Demographics shifts
11.Laws regarding pollution and
recycling
12.Inflation rates
13.Attitudes toward work, leisure,
career and retirement
14.Attitudes toward product quality
and customer service
15.Discrimination laws
 1. Discrimination laws
2. Extreme weather events
3. Social Media risks
4. Emerging Technologies
5. Interest rate
6. Supply Chain Automation
7. Age distribution
8. Copyright and patent laws/ Intellectual Property Rights
9. Changes in weather and climate
10.Tax incentives
11.Reduction of Carbon Emissions
12.Employment laws
13.Data breaches
14.Use of green or eco-friendly products and practices
15.AI and Machine Learning

1. Import restrictions
2. Attitudes toward saving and investing
3. Health and safety laws
4. Consumer protection laws
5. Tariff and Trade restrictions
6. Regulation and deregulation
7. Carbon footprint
8. Recycling

Factors employing PESTEL Analysis

POLITICAL :-
• Political tensions
• Import restrictions
• Tariff and Trade restrictions
• Regulation and deregulation

ECONOMIC :-
• Tax rates
• Recession
• Interest rate
• Inflation rates
• Exchange rates
• Unemployment rate
SOCIO CULTURAL DEMOGRAPHIC :-
• Age distribution
• Cultural diversity
• Demographics shifts
• Population growth rate
• Health consciousness and trends
• Changing consumer lifestyles and preferences

TECHNOLOGICAL :-
• E-commerce
• Cybersecurity Threats
• Emerging Technologies
• Big data and computing
• AI and Machine Learning
• Supply Chain Automation

ENVIORNMENTAL / ECOLOGICAL :-
• Changes in weather and climate
• Climate Change/ variability
• Extreme weather events
• Carbon Emissions
• Laws regarding pollution and recycling
• Use of green or eco-friendly products and practices

LEGAL:-
• Discrimination laws
• Health and safety laws
• Consumer protection laws
• Copyright and patent laws
• Intellectual Property Rights

Economic Environment:
Economic Policies & Reforms in India
Economic policy :-
• Economic policy refers to the actions that governments take in the
economic field.
• It may cover the setting of:
• taxation,
• government budgets (expenditure, borrowings, fiscal deficit, etc.),
 • money supply,
• interest rates,
• labor market reforms (minimum wages, welfare benefits, etc.),
• national ownership of resources,
• other areas of government interventions into the economy.
Pre reform economic scenario in India :-
• Indian economic policy after independence was influenced by the
colonial experience (which was seen by Indian leaders as exploitative in
nature).
• Nehru, and other leaders of independent India, sought an alternative to
the extreme variations of capitalism and socialism.
• India adopted for a socialist society with a strong public sector but with
private property and democracy.
• India adopted a centralised planning approach.
• Policy tilt towards protectionism,
• strong emphasis on import substitution,
• industrialisation with a dominant State/ Public Sector
• Excessive business regulation : state intervention at the micro level in all
businesses especially in labour and financial markets,

Indian economy in the pre reform era :-

• Indian economy was a closed one. Licence Raj was prevalent to set up
business in India. The Indian rupee was non-convertible both on current
and capital account and high tariffs and import licensing prevented
foreign goods reaching the market.
• The central pillar of the policy was import substitution, the belief that
India needed to rely on internal markets for development, not
international trade. There was restriction of foreign investment and
technology and government controlled finance and capital markets.
• There were high duties and taxes with multiple rates. PSUs were
considered as the engine of growth. There were restrictions on Foreign
Direct Investment (FDI) and Multinational corporations (MNCs).

The 1966 Devaluation :-

• Sustained Fiscal Deficit and increase in money supply
• Inflation and overvalued currency
• Foreign exchange reserves
• Cutoff of foreign aid
• Devaluation (30%)
Devaluation of the Indian Currency :-
• Since its independence in 1947, India faced two major financial crises
and two consequent devaluations of the rupee.
• These crises were in 1966 and 1991
• There are many similarities between the devaluation of 1966 and 1991.
• Both were preceded by large fiscal and current account deficits and by
dwindling international confidence
• Inflation caused by expansionary monetary and fiscal policy depressed
exports and led to consistent trade deficits.
• The tendency of the government since Independence towards large
budget deficit
• Engaging in inflationary economic policies in conjunction with a fixed
exchange rate regime is not the appropriate policy.
• Had India followed a floating exchange rate system, the rupee would
have automatically adjusted to market realities and India would not
have faced such financial crises.

Chronology of India’s exchange rate policies :-

• 1947 (India became member of IMF): Rupee tied to pound, Re 1 = 1 s, 6 d,
rate of 28 Oct, 1945
• 6 June, 1966: Rupee devalued, Pre devaluation Rate Rs 4.76 = $1, Post dev,
Rs 7.50 = $1 (57.5%)
• August 1971: Rupee pegged to gold/dollar, international financial crisis
• 20 December, 1971: Rupee is pegged to pound sterling again
• 1975: India links rupee with basket of currencies of major trading partners.
Although the basket is periodically altered, the link was maintained until the
1991 devaluation.
• July 1991: Rupee devalued by 18-19 %
March 1992: Dual exchange rate, LERMS, Liberalised Exchange Rate
Management System
• March 1993: Unified exchange rate: $1 = Rs 31.37
• 1993/1994: Rupee is made freely convertible for trading (current a/c), but
not for investment (Capital A/c) purposes

Drawbacks of Pre-1991 economic policy :-

• The “Licence Raj” or “Permit Raj” was the elaborate system of licences,
regulations and accompanying red tape that were required to set up and
run businesses in India between 1947 and 1990.
• Import substitution: Import substitution industrialization is a trade and
economic policy which advocates replacing foreign imports with
 domestic production. It is based on the premise that a country should
attempt to reduce its foreign dependency through the local production
of industrialized products and was intended to promote self reliance.
• However, this meant the monopoly of Indian industries and lack of
incentive for them to improve the quality of products which hampered
consumer interests.
• Indian economy was by and large closed to the outside world.
• Indian currency, the rupee, was non-convertible and there used to be
high tariffs and import licensing prevented foreign goods reaching the
market.
• The Govt would decide what was produced, how much, at what price
and what sources of capital were used.

Factors which lead to 1991 economic reforms :-

• Rise in Prices: The inflation rate increased from 6.7% to 16.7% due to
rapid increase in money supply and the country’s economic position
became worse.
• Rise in Fiscal Deficit: Due to increase in non-development
expenditure fiscal deficit of the government increased. Due to rise in
fiscal deficit there was a rise in public debt and interest. In 1991 interest
liability became 36.4% of total government expenditure.
• Increase in Adverse Balance of Payments: By 1985, India had started
having balance of payments problems. In 1980-81 it was Rs. 2214 crore
and rose in 1990- 91 to Rs. 17,367 crores. To cover this deficit large
amount of foreign loans had to be obtained and the interest payment
got increased.
• Iraq War: In 1990-91, war in Iraq broke, which led to a rise in petrol
prices. The flow of foreign currency from Gulf countries stopped and this
further aggravated the problem.
• Dismal Performance of PSUs: These were not performing well due to
political interference and became big liability for government.
• Fall in Foreign Exchange Reserves: India’s foreign exchange reserve fell
to low ebb in 1990-91 and it was insufficient to pay for an import bill for
2 weeks.

International events associated with Indian reforms :-

• The Soviet Union was collapsing at the time, proving that more
socialism could not be the solution for India’s ills.
• Deng Xiaoping had revolutionized China with market-friendly reforms.
 • 1990-91 Iraq war led to the stoppage of flow of foreign currency from
Gulf countries.

Role of IMF and World Bank :-

• To tide over the BOP crises India approached the International Bank for
Reconstruction and Development (IBRD), commonly known as World
Bank and the International Monetary Fund (IMF) for help.
• India received 7 billion dollars as loan from these institutions to solve
the crisis. However, it came with some conditionalities.
• It had to pledge 20 tonnes of gold to Union Bank of Switzerland and 47
tonnes to Bank of England as part of the deal with the International
Monetary Fund (IMF)
• In addition, as part of the bailout, IMF expected India to liberalise and
open up the economy and remove trade restrictions between India and
other countries.

Scope of reforms :-
• These reforms have two main aspects:
• macroeconomic stabilization measures and
• structural adjustment measures.
• Macroeconomic stabilization measures included
• tax reforms,
• the balance of payment reforms,
• monetary policy reforms and
• inflation control.
• Structural adjustment reforms included
• new industrial policy,
• banking sector reforms,
• phasing out subsidies,
• disinvestment and others.
• Both these policies change lead to liberalisation processes in the form of
de-licencing, de-reservation and de- regulation.
• Increasing the role of private sectors in the functioning of the economy
and disinvestment connotes privatisation.
• Further, changes in trade policies like reducing the rates of duties and
tariffs made trade attractive, the flow of FDI and integration with world
economy or globalisation.
• Our orientation shifted from ‘Inward looking policy’ to ‘Outward
looking policy’.
Scope of reforms :-
• India’s New Economic Policy was announced on July 24, 1991 known as
the LPG or Liberalisation, Privatisation and Globalisation model.
• Liberalization- It refers to the process of making policies less
constraining of economic activity and also reduction of tariff and or
removal of non-tariff barriers.
• Privatization- It refers to the transfer of ownership of property or
business from a government to a privately owned entity.
• Globalization- It refers to the expansion of economic activities across
political boundaries of nation states.
• The main objective was to plunge Indian economy into the arena of
“Globalization” and to give it a new thrust on market orientation. The
policy was intended to move towards higher economic growth rate and
to build sufficient foreign exchange reserves.
• It wanted to achieve economic stabilization and to convert the economy
into a market economy by removing all kinds of unnecessary
restrictions.
• The policy aimed at increasing the participation of private players in all
sectors of the economy.

Liberalisation :-
• Liberalisation refers to curtailing or lessening of the excessive state/
government regulations and restrictions
• Enhance the participation of private entities/ sectors in the functioning
of the economy.
• Prior to the policy of LPG, the Indian economy was entangled in
excessive state control, red-tapism and licence raj. These factors not
only inhibited the efficiency of the public sector but the overall
competitiveness of the economy was hampered.
• Post-1991, Liberalisation measures include new industrial policy,
financial sector reforms, tax reforms, FOREX reforms and others. In the
Industrial policy of 1991, several measures were undertaken to liberalise
the economy.
• Firstly, the list of projects requiring industrial licensing was pruned and
only 18 industries related to security concerns, environment, hazardous
chemicals, white or luxury goods, etc were kept under the purview of
compulsory licencing.
• Secondly, Industries reserved for the public sector were reduced to only
two industries i.e. one related to atomic energy and second, railways.
 • Thirdly, the requirement of licensing for setting up of industries within
25 Kms of the periphery of cities having a population of more than 10
lakh for a certain class of industries was removed.
• Fourth, to boost and invite Foreign Direct Investment (FDI) in high
priority industries which requires heavy, lumpsum investment and
advanced technology, it was decided to provide approval for FDI up to
51% foreign equity in 33 industries like electrical equipment,
metallurgical industries, etc.
• Similarly, government provided automatic approval for technology
agreements related to high priority industries.
• Fifth, the Monopolies and Restrictive Trade Practices Act (MRTP) 1969
was repealed.
• Sixth, the sick industries were referred to Board for Industrial and
Financial Reconstruction (BIFR) for the formulation of revival/
rehabilitation schemes.

Salient features of LPG Policy :-

• Abolition of Industrial licensing/ Permit Raj
• Dilution of Public sector role
• MRTP limits abolished
• Beginning of privatisation
• Free entry to foreign investment and technology
• Industrial location policy liberalized
• Abolition of phased manufacturing programmes for new projects
• Removal of mandatory convertibility cause in loan agreements
• Reduction in import tariffs
• Deregulation of markets
• Reduction of taxes

Outcome of the LPG reforms :-

Positive outcomes:
• India’s GDP growth rate increased. During 1990-91 India’s GDP growth
rate was only 1.1% but after 1991 reforms GDP growth rate increased
year by year and in 2015-16 it was estimated to be 7.5% by IMF.
• Since 1991, India has firmly established itself as a lucrative foreign
investment destination and FDI equity inflows in India in 2019-20 (till
August) stood at US$ 19.33 billion.
• In 1991 the unemployment rate was high but after India adopted new
LPG policy more employment got generated as new foreign companies
 came to India and due to liberalisation many new entrepreneurs started
companies.
• Per Capita income increased due to an increase in employment.
• Exports have increased and stood at USD 26.38 billion as of October,
2019.

Negative Outcome of the LPG reforms :-

• In 1991, agriculture provided employment to 72 percent of the
population and contributed 29.02 percent of the GDP. Now the share of
agriculture in the GDP has come down drastically to about 15
percent. However, the percentage of population engaged in agriculture
continues to be more than 50%. This has resulted in a lowering of the
per capita income of the farmers.
• Due to opening up of the Indian economy to foreign competition, more
MNCs are competing with local businesses and companies which are
facing problems due to financial constraints, lack of advanced
technology, production, logistic and infrastructure inefficiencies.
• Globalization has also contributed to the destruction of the
environment through pollution by emissions from manufacturing plants
and clearing of vegetation cover, further affecting the health of people.
• LPG policies have lead to widening income gaps within the country. The
higher growth rate is achieved by an economy at the expense of
declining incomes of people who may be rendered redundant.

BAJAJ CHETAK CASE STUDY :-

1. The 1970s and 1980s in India were marked by significant political and
economic changes, which significantly influenced the landscape for Bajaj
Chetak, the iconic scooter.
2. Due to its increasing popularity, the company gave it the tag line of
'Hamara Bajaj'.
3. In the 1980s, if some reports are to be believed, the Bajaj Chetak scooter
had even ≥ 10-year waiting period.

1. Socialist Policies and Import Substitution:

• Indira Gandhi's government (1971-1984): The ruling party, Congress,
pursued socialist policies, emphasizing self-reliance and import
substitution. This meant encouraging domestic production and
discouraging imports.
• Bajaj Chetak benefitted: As a domestically produced two-wheeler,
Chetak aligned perfectly with the government's agenda. It received
preferential treatment .
• Licenses: The government restricted licenses for foreign scooter
manufacturers, limiting competition for Bajaj.
• Raw materials: Easier access to raw materials and resources compared
to potential foreign competitors.

2. Licensing Regime and Limited Competition:

• Licensing Raj: The Indian economy functioned under a strict licensing
system, creating a controlled and often monopolistic environment.
• Limited competition: Bajaj Chetak faced limited competition due to the
licensing restrictions, solidifying its dominant position in the scooter
market.

3. Rising Middle Class and Aspiration:

• Economic growth: The 1970s and 1980s witnessed a gradual rise in
India's middle class.
• Increased aspirations: Owning a two-wheeler, particularly a Bajaj
Chetak, became a symbol of social mobility and a mark of middle-class
status.

4. Political Unrest and Labor Issues:

• Political instability:.This period saw periods of political turbulence and
social unrest in India
• Labor strikes: Bajaj faced occasional labor strikes and production
disruptions, impacting availability and creating waiting lists for the
Chetak.

Connecting bajaj with b.e :-

1. Overall, the government and political environment of the 1970s and
1980s was largely favorable for Bajaj Chetak. The socialist policies, the
licensing regime, and rising middle-class aspirations all contributed to its
dominant market position. However, the political instability and labor
issues posed occasional challenges.
2. It's important to note that the 1990s saw significant economic reforms in
India, including liberalization and opening up of markets. This changed
the landscape for Bajaj Chetak, introducing competition and forcing them
to adapt to a new business environment.
After Few Years –
Chetak Impact on Business Environment :-
1. Economic Liberalization:
• Market opening: The Indian government embarked on economic
reforms, opening the market to foreign competition.
• Increased competition: New players like Honda and Kinetic entered the
two-wheeler market, offering a wider variety of options with features
like gearboxes and improved fuel efficiency.

2. Changing Consumer Preferences:

• Shifting tastes: Consumers, particularly the younger generation, became
more attracted to the new features and variety offered by the
competition.
• Fuel efficiency concerns: Rising fuel prices made fuel-efficient options
like motorcycles more appealing compared to the relatively less efficient
Chetak.

3. Bajaj's Response and Challenges:

• Limited innovation: Bajaj initially struggled to adapt to the changing
market dynamics. While they launched some new models like the Pulsar,
Chetak continued to rely on its older technology.
• Focus on motorcycles: Bajaj gradually shifted its focus towards
developing and promoting motorcycles, which were in higher demand.

The fall :-
1. Consequently, the market share of Bajaj Chetak declined steadily
throughout the 1990s and 2000s. While it remained a popular choice for
certain segments, it no longer held the dominant position it once enjoyed.
2. Old Chetak Production was ultimately stopped in 2009 due to low
demand and stricter emission regulations.

Parle Vs Cola: Not so cold war :-

Parle vs Cola: Not So Cold War" is a term used to describe the marketing
and competitive dynamics between Parle Products, an Indian snack and
beverage company, and major global cola brands like Coca-Cola and Pepsi.
This phrase highlights the competitive landscape and market strategies
within India's beverage industry, particularly how local companies like Parle
compete with international giants.

BACKGROUND OF PARLE :-
History:
o Founded In 1929 By The Chauhan Family of Vile Parle, Mumbai
o Founder: Mohanlal Chauhan
o His Profession was tailoring moved to bakery
o Five sons worked together
o Started manufacturing of biscuits in 1939, with a license to supply their
biscuits only to the British Army
o In 1947, when India became independent, the company launched an ad
campaign showcasing its Glucose biscuits as an Indian alternative to the
British biscuits.
o Parle became well-known in India, Parle-G

History:
o Much later, in 1977, the Morarji Desai government expelled Coca-Cola
from India.
o The family saw an opportunity here and opened their own cold drinks
business, which flourished because there was no competition.
o Cold beverages like Gold Spot, Thums Up and Frooti, all of which became
household names.
o Expanded Into Beverages In The 1970s.

Products:
o Parle-g Biscuits: World's Largest Selling Biscuit Brand.
o Thums Up (1977): Leading Cola Brand.
o Other Beverages: Gold Spot, Limca.

BACKGROUND OF COCA-COLA :-
History:
o Entered India In 1950, Exited In 1977, Re-entered In 1993.
Products:
o Coca-cola: Global Brand.
o Other Products: Sprite, Fanta, And Acquired Parle Brands.

MARKET ENTRY STRATEGIES :-

Coca-Cola:
Initial Entry: Faced regulatory hurdles and competition.
Re-entry (1993): Acquired Parle brands for market share.
Marketing: Heavy investment in advertising.

Parle:
o Dominated market in Coca-Cola's absence.
o Focus on local tastes and distribution.

POLITICAL ENVIRONMENT :-
Regulatory Landscape:
o Stringent Regulations Under FERA (Foreign Exchange Regulation Act).
o Impact Of Liberalization Policies In The 1990s.
Government Influence:
o Role Of Indian Government Policies On Foreign Investments.
o Protectionist Policies Affecting Coca-cola's Operations.

ACQUISITION OF THUMS UP :-
Details:
o Coca-cola Acquired Parle’s Soft Drink Brands In 1993 For $60 Million.
o Thums Up Remained A Strong Brand.

Motivation:
o Neutralize Competition By Acquiring Market Leader.
o Strengthen Portfolio With Thums Up’s Loyalty.

COMPETITIVE LANDSCAPE POST-ACQUISITION :-

o Market Share:
o Significant Shift Post-acquisition.
o Thums Up Retained Its Leading Position.
Consumer Preference:
o Strong Loyalty To Thums Up Continued.
o Balance Between Promoting Coca-cola And Maintaining Thums Up’s
Dominance.

MARKETING & BRANDING STRATEGIES :-

1. Coca Cola –
o Integrated Campaigns Targeting Youth.
o Celebrity Endorsements And Local Adaptations.

2. Parle :-
o Pre-acquisition: Focus On Indian Values.
o Post-acquisition: Continued Strong Marketing For Retained Products.

LEGAL & REGULATORY CHALLENGES :-

Issues:
o Faced Regulatory Hurdles Under FERA.
o Environmental And Health Concerns.

Resolution:
o Compliance With Local Regulations.
o Initiatives For Sustainability And Addressing Health Concerns.

IMPACT ON THE BEVERAGE MARKET :-

Market Dynamics:
o Increased Competition Between Coca-cola & Pepsico.
o Growth In The Beverage Market.

New Entrants:
o Entry Of New Players & Diversification.
o Innovations In Packaging & Product Sizes.

SWOT ANALYSIS COCA-COLA :-

Strengths:
Global Recognition, Distribution Network.
Weaknesses:
Cultural Adaptation, Reliance On Sugary Drinks.
Opportunities:
Rural Markets, Health-conscious Products.
Threats:
Competition, Regulatory Changes, Health Concerns.

SWOT ANALYSIS Parle :-

Strengths:
Local Brand Presence, Consumer Loyalty.
Weaknesses:
Limited International Presence.
Opportunities:
Diversification, New Distribution Channels.
Threats:
Competition From Global Giants, Changing Preferences.

CURRENT SCENARIO :-
Market Position:
o Significant shares held by Coca-Cola and Thums Up.
o PepsiCo remains a strong competitor.
Recent Developments:
o Focus On Health And Wellness Products.
o Increased Digital Marketing And Engagement.