Question 2.2 .Coca-Coca
Question 2.2.
What are the challenges that Coca-Cola is likely to face to grow its business in Africa?
The African countries have primarily developed and improved on their political balance and substantial foundations. Coco-Cola has become one of the most significant independent investment ventures in Africa, creating job vacancies and a 29% portion of the demand. The company diversification of its product in Africa faces particular limitations in creating its niche in the continent.
Accessibility: penetration into Africa’s villages, towns proved challenging due to poor roads, poverty, and war in some regions. These limitations made it very difficult for Coco Cola’s distributors to impede their spread and advertise their Cola products to areas deep in the countries. As a result, physical methods needed to be used, for instance, using trolleys and pushing carts to deliver the products to their retailers and consumers. The product’s ground for growth was very challenging. Some countries were undergoing civil wars, and the main road poorly constructed, having large potholes that, if not cautious, would cause an accident. All these factors inhibited Coco Cola’s expansion.
Critics:most African natives believed in drinking fresh water to quench their thirst, thus accused Coco-Cola Company of expending clean water and introducing pricey, conserved, and ambient dangerous drinks. The local people also believed that introduction of the Cola soft drinks was affecting the selling of local beverages. The company continuously justifies themselves for adversely contributing to the countries’ economies and the creation of numerous job opportunities improving the welfare of the nationals.
Limited sale’s growth due to poverty:the African market was very primitive, comprising a significant population. Most people in the region earned minimal wages and concentrated more on fulfilling their basic needs. Although purchasers of Coo Cola products in the emerging African market characterized by low and periodic income, it would be wrong to predict they buy cheap and inferior quality products. These clients are highly aware of the quality and more inspired to buy the best products, although it may be occasional. This state presented a great challenge for the Coco Cola company when diving into the new market to supply standard goods and brands and offering affordable prices.
Health issues: Coco cola’s soft drinks are unfavorable to peoples’ teeth, and it can cause direct damage. For low wage earners, coco-cola consumption is an ineffectual expense. Coco cola comprised of empty calories with no nutrients, and people needed to buy more nutritious food for good health, thus another limitation faced by the company.