Page 136 - NITI - Navigating Indian Traditions in Industry

Over time, the partnership expanded beyond coffee to include iced teas, energy
drinks, and other beverages, demonstrating the adaptability and growth potential of
well-structured alliances.

5. Risk Sharing:
The strategic alliance allowed both Starbucks and PepsiCo to share the risks
associated with entering the RTD coffee market. Given the considerable investment
required in production, marketing, and distribution, both companies were able to
share the burden of financial and operational risks. This is a direct parallel to the
idea of Samyog in Dhanurveda, where working together helps distribute risks and
uncertainties, making the partnership more resilient to market fluctuations.

6. Enhanced Brand Equity:
The Samyog between Starbucks and PepsiCo also allowed for an enhancement of
both brands’ equity. PepsiCo gained access to Starbucks’ high-end, premium brand
perception, while Starbucks benefited from PepsiCo’s extensive market reach and
recognition in the beverage industry. Their collaboration allowed both brands to grow
their presence in new segments, with PepsiCo strengthening its position in the coffee
category and Starbucks expanding its consumer base into more convenience-driven
markets.

7.1.6 Viyog (Separation and Diversification)
Viyog in Dhanurveda focuses on the concept of separation and strategic withdrawal
when necessary, allowing for a retreat to regroup, reorganize, and prepare for a
more favorable opportunity. This principle is closely tied to diversification, market
separation, and creating a distinct identity in business to reduce risks and create
sustainable value.
In modern business, Viyog translates to strategies where a company might choose
to diversify, exit a market, or separate its business units to focus on areas of greater
opportunity or reduced risk. This approach helps companies mitigate risk, avoid
direct competition in saturated markets, and explore more profitable or less contested
spaces.

Modern Theories and Practices Linked to Viyog:

Diversification Strategy
Diversification involves expanding a company’s operations into new areas to reduce
dependency on a single market or product. Viyog highlights the importance of strategic

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