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Pepsi Cola International (PCI) in Ukraine - Essay Example
Pages 10 (2510 words)
This report analyses the conditions of Pepsi Cola International (PCI) in Ukraine which has been operating in Former Soviet Union for many years. Pepsi bottles and distributes the product in several major cities by means of franchise agreements. …
Pepsi Cola International (PCI) in Ukraine
One of the major challenges faced by Pepsi Cola International in this region is the poor infrastructure because of which too much time is taken to distribute goods throughout the region. The other challenge that Pepsi has been facing in Ukraine is about storing of goods because of lack of sufficient warehouse. Pepsi has also problems in distributing its goods in village areas of the country as people in such regions are not able to get the supplies of Pepsi despite of the fact that they want to drink the Cola. With inefficient logistics and supply chain in the country, different intermediaries have come up which are trying to capitalize on the situation by making the most of this opportunity and trying to sell the cola after keeping some profit. Thus, this is making the price of Pepsi to increase.
In addition to this problems faced by one of the largest beverages companies of the world, firms in Ukraine have to face substantial tax rate in the country as the tax is imposed on 90% of the total sales of the company and therefore organisations are forced to misrepresent their actual sales and actual financial statements to improve their profitability.
Currently the Coca Cola has built a bottling plant to capture the market of Ukraine despite of the fact that Pepsi has been the most favourite cola in the country for years. Therefore with the introduction of Coca Cola in the Ukraine market, the management is currently business practices and evaluating whether a change is necessary or not. ...
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