Coca-Cola and Pepsi-Cola both entered China in the early 1980s. Coke expanded rapidly through a series of partnerships with local 'anchor" bottlers and the Chinese government and by 1994 had 19% of the Chinese soft drink market. Pepsi, on the other hand, preferred equity investments in local bottling partners, and by 1994 had 9% of the market. Both companies face competition from large and small companies selling local soft drink brands such as Jianlibao, and a major challenge in obtaining broad-based distribution. Focus on developing a strategy for PepsiCola in the