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Coca Cola In Africa Case Study

713 Words3 Pages

Well to start off the Coca-Cola Company has been around for a little over a hundred years and has flourished in their market. Like any large company, the reason they are targeting the African market is simply the reason they are seeking for new opportunities for future potential growth within the market. This search in opportunities for potential growth is due to from the fact that many of the companies markets outside of Africa are mature, saturated, declining or are experiencing and increased number of competition. Another prime motive as to why Coca-Cola is interested in Africa because they connect through Africa's incomes that are increasing, along with Africa's infrastructure and government which is also improving. Also, Africa’s population …show more content…

However, the downside is that yes there are some major drawbacks for Coca-Cola in making such a large scale commitment into Africa. Despite the growth in Africa’s average income and the improvements that are being made within the government, there is still a problem because as of today many or most rural areas in Africa where the government and physical infrastructure are just not stable enough to hold a market entity like Coca-Cola. So by having Coca-Cola invest large amounts of their money into the African economy, could potentially result in the instability within the company and could prove to be disruptive to their …show more content…

Coca-Cola will need to find a way to sustainably manufacture that will not pillage the continents already scarce natural resource. The general health is also a critical issue unlike many other markets people do need the extra calories, but critics will argue that they should be getting them through other means of nutrition. Also, there is a great concern about water usage for the production of Coca-Cola’s product and the impact of not having sufficient refrigeration to keep the products cold. Which in turn would result in a waste of the product its self and of the already of the scarce resource. Not everybody will necessarily agree with these criticisms or feel that they are not important enough to oppose Coca-Cola’s focus on moving into Africa, but they do indeed bring up some moral and ethical

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