Entry Strategies of International Company in Emerging Markets

In recent years there has been an active expansion of international corporations in emerging markets. Western companies have shown interest in the opening of these markets for their capital, production technology, goods and services. However, emerging markets are characterized by a number of barriers complicating the process of firms’ internationalization in these markets. Under such conditions, the development of entry strategies to emerging markets is becoming more and more urgent for international players. The main purpose of this study is to identify existing entry strategies of PepsiCo to such emerging markets as China and Russia. Achieving of this purpose will contribute to the understanding of the main difficulties and problems faced by international corporations engaged in expansion into emerging markets. The analysis of entry strategies of PepsiCo to Chinese market led to the conclusion that the combination strategy of the joint venture with following merger (takeover) will allow company to achieve maximum benefits on the Chinese food and beverages market. The assessment of the success of PepsiCo's expansion strategy into the Russian market shows that the performance of companies in the food and beverages market directly depends on correctly built logistics system, production technologies and production facilities. In this case the optimal entry strategy to Russian food and beverages market is the strategy of direct investment.