Coca-Cola, the major rival of Pepsi has been exiled from the desert kingdom. Because of this, Pepsi extended into Arab Countries & comes with an 80% talk about of the $1 billion Saudi soft-drink market. Saudi Arabia is the third largest foreign market of Pepsi, after Mexico and Canada. In 1993, about 7% of Pepsi-Cola International's sales came from Saudi Arabia. The surroundings in Saudi Arabia makes the country very favorable to soft-drink sales because alcohol is prohibited & climate is scorching and dry out. Mode of Growth: Pepsi uses franchise system for international development. Sources of Competitive Advantage: PepsiCo has competitive benefit in terms of worldwide syndication & the business is able to produce all its products in the united states where they are really consumed.