SWOT analysis seeks to look into an organizations environment both internally and externally. Internal forces comprises of strengths and weaknesses while the external environment comprise of opportunities and threats.
Why is coca-cola so interested in Africa which is typically regarded as part of the base of the global economic pyramid?
The coca-cola company is the world leading beverage producing company. It was founded in the year 1886. Coca cola is interested in the African market due to its potential growth. The Asian market, European and the American market are fully utilized and any company seeking growth and expansion opportunities in the global market like the coca cola company has to look up at the African market. Africa is undergoing urbanization which makes it easy for coca cola to distribute its products. There is a growing trend in Africa where the middle class population is on the increase and their income are also increasing they are willing to buy more and more from coca cola company to meet their needs for beverages. Although the African continent is regarded as having some of the poorest countries there are 12 countries with a population of over 100 million whose combined GDP surpasses that of china. African countries are attaining political stability thus conducting business in Africa is becoming successful for coca cola. Africa nations are seeking foreign investors in order to create employment and achieve economic growth thus the coca cola company has exploited this opportunity to invest in Africa (Us.coca-cola.com, 2015).
What unique resources and capabilities does Coca-Cola have that will have help it complete well in Africa
Coca Cola Company enjoys vast resources in terms of capital structure; assets and international recognition that will enable it succeed in the African market. These are its strengths. It has the ability to conduct street by street campaigns and promotion in order to ensure their goods are known and marketed to each and every town and village. Coca cola has over three thousand distribution centers which manual thus making distribution of products to be effective. It will ride on it well known brand name thus making it easy in marketing and promoting its products. The company has employed a huge work force in Africa thus gaining support from the governments and the society at large. It has also participated in corporate social responsibilities which help it improve its image and gain acceptance in the society (StudyMode, 2015).
What are the drawbacks of making such large scale commitment to Africa?
The coca cola company in making large scale investment in Africa could suffer from several threats. These threats include political instability in the African continent resulting in wars could hinder it operations. In most regions there exists poor infrastructure thus making penetration complex and expensive. African governments are characterized as being corrupt thus this menace will affect the operations of Coca Cola Company (Investors et al., 2015).
Do stakeholders in the United States and Africa who criticize coca cola have a reasonable case against it?
There exist weaknesses in Coca Cola Company resulting to why United States and Africa stakeholders criticize coca cola. There are health concerns associated with coca cola products; the calories content in the products has been a subject of its criticism. Acidity level in the product has raised health concerns and even resulted in court cases. The company is also characterized with poor record in environmental conservation. Coca cola is accused of engaging in questionable strategies of marketing and engaging in monopolized business operations for its products. Concerns have been raised over it suppression of trade unions, and violating of intellectual rights (Us.coca-cola.com, 2015).
Study Mode,. (2015). coca cola in Africa by Chrissy-Hu. Retrieved 5 January 2015, from http://www.studymode.com/course-notes/Coca-Cola-In-Africa-61750195.html
Investors, Company, Page, Brands, Videos, & Sustainability, et al. (2015). Coca-Cola Journey Homepage. The Coca-Cola Company. Retrieved 5 January 2015, from http://www.coca-colacompany.com/
Us.coca-cola.com,. (2015). Coca-Cola | Home. Retrieved 5 January 2015, from http://us.coca-cola.com/mobile/home