Challenges Faced by Coca-Cola in Africa

INTERNATIONAL
BUSINESS ACROSS
BORDERS

TABLE OF CONTENT
WEEK 2...........................................................................................................................................2
Question 2.2.................................................................................................................................2
WEEK 3...........................................................................................................................................3
Question 3.3.................................................................................................................................3
WEEK 4...........................................................................................................................................3
Question 4.3.................................................................................................................................3
WEEK 5..........................................................................................................................................4
Question 5.3.................................................................................................................................4
WEEK 6...........................................................................................................................................5
Question 6.2.................................................................................................................................5
REFERENCES................................................................................................................................7

WEEK 2
Question 2.2
There are various challenges i.e. low disposable income of the people in the Africa
country that causes it serves it’s product only in 39 countries. Africa is considered as poorest
country in the world because numerous countries of the Africa has low GDP rate in the world
that cause Coca-Cola unable to expand it’s business in various African countries. Apart from this
there has poor infrastructure, war and poverty which inhibits supplying and marketing of the
Coca-Cola product that is major challenge for the organization. Due to lack of distribution
unable to access various regions of Africa by company (D’angelo and Kofman, 2017). In
addition, Coca-Cola have to defence itself from criticism such as there are various Africans who
accuse that it will lead depletion fresh water and promotes expensive. In addition, Africans
considers that it impacts environment sue to harmful refrigeration as result climate will change.
in Addition, few Africans claims that it can hurt local competitors of Africa who hawk beverage.
These are the major challenges which are faced by company. To build trust of the customer
conducts marketing campaign in small streets by the company but it have to face economic
issues. Diet challenge also face by company because people thinks soft drinks are the main
source4 of epidemic and obesity that causes it directly impacts people health negatively. Another
challenge is Pepsi because it has good market share in the Africa country and has good brand
image as well. Just because of this, company have to give more efforts in their strategy and
product to win competition and trust of the people on the product as compared Pepsi. Bottle
challenge is also faced by organization because it exports it’s beverage products in the bottle
which creates pollution and release alkalis in the beverage product as result gets negative impact
on the people health. Due to the waste pollution government imposes some rules for the beverage
industries. So, organization have to change container of the product to comply with policies.
Sugar Tax is also another challenge in the South Africa which is faced by organization. Due to
high taxes impacts on the sale because additional taxes raise price of the beverage product. it
causes buying behaviour of the customer decreses as result faces loss volume sales by Coca-Cola
company in South Africa. These are the major challenges that creates hardship for the company
to conduct its business in the Africa country but later on, it overcomes all the issues and
challenges through its strategies and captures large market share on it’s products (De Wee,
2019).
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