GLOBALIZATION

Globalization



Globalization

Introduction

Globalization has made this a global village in all aspects. No matter its distances, relations or a business, this term has made everything reachable in the shortest of the times. Business, which was at times, were only done locally, now have started globally with each other and because of this many advantages have been taken (John , Wild and Keneth 2009). Markets are no longer dependent on local business in fact they go for international businesses as well to earn maximum profits and one its example is “Pepsi”.

Pepsi was founded in the year 1898, by Caleb Bradham, a drug store owner and a pharmacist in the city New Bern of North Carolina. This one of the world's most drinkable beverage was initially started in the summer season by Caleb Bradham to provide his customers a new type of juice. Who knows that this locally made beverage will become one of the leading beverages of the world. Initially it was introduced as “Brad's Drink” but later in 1906 it was first time renamed as Pepsi-Cola and was further renamed as Pepsi in 1961. It gained great success during the great depression of 1936 and fought in prices with the coca-cola and their campaign was found to be successful. The profits of Pepsi got doubled during the year 1936-1938.

Discussion

Working in international markets does not only increase the profit of Pepsi in fact it is helpful in many ways. Through this we can minimize the costs of the production, can find new market opportunities, and through this we can use our local technology to move forward and that also can improve our local technology as well. Following are some impacts of positive impacts of denationalization:

How marketing costs are lower and how new market opportunities are created

Marketing costs were certainly lowered when Pepsi was introduced internationally. One major reason can be when we use Pepsi, we used to tell our friends about it which is an indirect marketing and as it is used internationally, so every region has its drinkers which does indirect for it and thus, marketing costs are lowered. Today, Pepsi does its marketing through various sources like media, giving discount in different deals and in sports industry it has major contribution (Frank, 2009).

Once you enter a new market, there are new opportunities waiting for you, and same had happened with the Pepsi. Entering international market helps those to better its taste, formation of new different color beverages and similar aspects like that help them to improve their position in the international market.

How international exposure helped income, benefited the local market, and reduced expenses

When Pepsi entered in the international market, its customers certainly raised a lot numerically; this increased their business and also their income. Initially, Pepsi was used in summers and hot seasons but today every season is a Pepsi season (Ian, Kenneth,2007). It is used as a trademark drink almost all over the world. Increase in the income of a product does not only help the producer ...