Assignments Economics

Reading: Coke’s Last Frontier

Here’s the reading for this week, due on Monday May 2, 2011.

Coke’s Last Frontier

Leave your comments below. Make sure to address some of these questions:

  • Why does Coke want to get into the market in Africa?
  • What’s different between markets in Africa and markets in the Western (developed) world?
  • What type of market structure is Coke? (from class / reading)

And, of course, what kind of cola are you? Coke or Pepsi, or something else? <– this is just for fun, and should not be the brunt of your answer…

20 replies on “Reading: Coke’s Last Frontier”

Coke wants to get into the market in Africa because it is in an area where Pepsi has not reached yet and they would be very dominant. Also, Africa makes up seven to nine percent of Coke’s market in Africa. In the markets in lesser developed countries, such as Africa, the market is very slim, since the civilians don’t make as much money; they can’t afford to spend their earned money on coke products. This is also why in lesser developed countries; the serving per capita is significantly less than in western countries. In these western countries, the market is much different because Coke has a lot more competition with other companies. In Africa, the market for Coke could be considered a monopoly or an oligopoly because there is few to no competition for Coke. Personally I will drink either Coke or Pepsi, but if I had to choose, I would pick Pepsi every time.

Coke wants to get into the market in Africa because they are starting to thrive as an economy. More people are able to buy things that they normally couldnt. Also, as a developing country, it is easier for Coke to start doing business there because it is a almost a monopoly by the Coke company because there really aren’y any other soda companies there. Almost everything has a coke label or logo on it. The difference between the market in Africa and the market in the western part of the world is that in Africa, Coke really has no competition. In the western part of the world, Pepsi is a huge competitor. Coke by itself in Africa is a monopoly. In the western part of the world, Coke is an oligopoly because Coke isn’t the only brand or competitor in the market place. There is also Pepsi and maybe an off brand of soda. I’m a Coke person, but not for the coca-cola itself. I don’t drink any dark colored pops. I don’t drink root beer or coke or anything. But I really enjoy sprite which is owned by the Coke company.

Coke wants to get in the market in Africa because it is one of the few places left in the world without a large Coke industry. Also, Africa is a young country and like Kent said, for a country to survive, and therefore grow, it needs to be full of young people. Africa’s market is different from developed countries’ markets for multiple reasons. They are less developed and do not have as much money. They also have a lack of fresh water. They have a very high unemployment rate but Coke is now the continent’s largest employer with 65,000 employees. Also, they do not have roads to get to places easily. Another difference between the markets product-wise is that Coke in Africa is sold in glass bottles that are re-used multiple times and essentially the buyer is only paying for the product, not for the packaging, like Americans do. Coke’s market structure in Africa doesn’t seem to have high barriers because they are breaking into the industry with little to no problems. According to this article, Coke seems to act as a monopoly in Africa because they control a lot of the drink industry by supplying Coke, Fanta, and even fresh water fountains that they sponsor. Finally, I do not have a preference between Coke or Pepsi, however my family likes Coke, so that’s what always seems to be available in the fridge!

Coke wants to have its market in Africa because unlike other parts of the world, Coke is considered a luxury item. For one, Coke is hard, but not impossible, to sell to small stores in Africa. Once there, the people of Africa willing and able to buy Coke will. Coke will also be in smaller amounts in Africa. Coke knows that having their product in Africa is a luxury to the people, and that Coke will always be in demand. They will always be able to make a profit in Africa. The reading also says that because Africa has such a young, lively population that’s growing, it also helps keep sales up.
The difference between Africa’s market and other markets goes along with what I said before. They have a growing population that helps increase sales for Coke, and will always be in demand. But according to the reading, on the other hand, it says that African countries watch and conserve how much Coke is sold. It has a lot to do with a rise in overweight and obese people world wide, not just in the U.S. In Africa, it’s argued that people shouldn’t be wasting “empty calories” on products such as Coke, when most people in African countries barely have enough calories in the first place. In Africa, they also use returnable glass bottles, which cut down costs on the product in general.
I think Coke is like an oligarchy. The power rests in small numbers of people, Coke CEO’s. They want money and will do a lot just to make sure they’re making money and are on top. They’re not quite like a monopoly, but they still have power in small numbers.
I’m not any type of “cola” person. I don’t like pop, so I don’t have a preference of Coke or Pepsi.

Coke wants to get into Africa because they want to help out as many people as they can. Plus when people or many companies come down to help out in Africa, they will notice the Coke and want to drink it to get refreshed. There are more open markets in the western than there is in Africa. Coke is a monopolistic company. To me, I drink anything. A brand does not bother me.

`Coke wants to get into the market in Africa because they can sell a lot because they need something to drink and they will make a lot from selling it. The Markets in Africa only go on one object while in the West they are going on multiple objects. Monopoly and i prefer Mountain Dew but it is a Pepsi product and i like Pepsi too

Coke wants to get in the market in Africa because there is good amount of demand for it. Also, America doesnt have a very high demand for it so it needs money from other countries. Coke will rely on some of the poorest nations to generate about 8 % of its earnings. Africa’s smaller stores are a major front in Coke’s growth plan. Africa, where
Coke is the dominant brand, may offer a potentially greater payoff. In other countries such as India and China, there isnt a high demand for coke. Africa has a poorer market so there iss more of a demand for coke. Coke is an oligopoly, which means Coke is run by a small number of sellers (2-4).
I like Pepsi more than Coke because I like the taste of it better.

Coke wants to bring its market into Africa so they can make more money. Thats what every good business is after. In the “developed” world we have so many more choices then just Coke. We have Pepsi and so many others. Coke is kind of like a monopoly but not entirely. They are doing so much in Africa they have become like the only seller there. My favorite pop company is Pepsi. I love Wild Cherry Pepsi.

Coke wants to bring its market into Africa so they can make more money. Thats what every good business is after. In the “developed” world we have so many more choices then just Coke. We have Pepsi and so many others. Coke is kind of like a monopoly but not entirely. They are doing so much in Africa they have become like the only seller there. My favorite pop company is Pepsi. I love Wild Cherry Pepsi. I don’t know if I replied. My internet decided to go south and come back up so if you get the first one you can ignore this one

Coke wants to get into the market of Africa to generate 7 to 9 percent earnings growth that was promised their investors. Also, since the demands are down in other countries who buy their product they need to look elsewhere such as Africa which has a large middle class who wants their product. The difference in the markets is in Africa the demand for Coke is such higher than the demand in the US and Europe (for example the US soda market has declined for five consecutive years). Coke’s market structure is an Oligopoly, few sellers of a similar product. I personally like Coke more then I like Pepsi.

Of course Coca Cola and Pepsi are huge competitors in the market and are constantly fighting to be in the lead. Coca Cola would have many incentives to be in Africa’s market. It’s already been said multiple times in class that the purpose of making a business is to make profit. Coca Cola needs to expand their product throughout Africa to expand its borders and reach into a new country to pull out new consumers. Africa’s “mom-and-pop” stores can cause a significant growth in their annual per capita that is vital to Coca Cola if they want to make this profit increase because in other countries, such as New Delhi or India, Pepsi has already gotten too far ahead for Coca Cola to stand a chance. Coca Cola already has the lead in Africa, and with Africa’s middle class is growing and showing more potential, they have a wider variety of consumer’s they can appeal to. The difference between markets in Africa and markets in the Western world is that the demand for Coca Cola in Africa is much greater than it is in the developed world, such as in the United States where the demand for Coca Cola has decreased for the past 5 years. The market for Coca Cola is oligopoly.

Coke wants to get into the market in Africa because not only is Coke a popular product in all countries of Africa, its sales in more developed countries have gone stagnant. The difference between Western countries’ markets and Africa’s market is that Africa’s market can’t afford all the variety that more developed markets can provide. I think Coke is a monopoly, because it uses its different products and strategy to try and sweep the world. Lastly, I don’t really like Coke or Pepsi, I prefer Dr. Pepper.

Africa opens an enormous opportunity for Coke to raise its per-capita annual consumption. They have a large growing middle class that they want to capture. PepsiCo. also isn’t leading in Africa so it will be easier for Coca-Cola to sell their products. Kent believes that investing in developing countries will double, by 2020, the $100 billion in global system revenue last year. Places like Africa have a growing middle class unlike places like the U.S. Coke is the more dominant brand (over PepsiCo)and the middle class is just emerging so it will have a greater payoff. There is no growth in the U.S. or Europe which are 2 of Coke’s largest and most profitable markets. The U.S. soda market has been on a decline for 5 consecutive years now. Kent thinks investing in developing countries will double profits by 2020.
I do not drink pop so I am not a Coke OR a Pepsi fan. I prefer water of any brand, it all tastes the same to me.

Coke wants to get into the market in Africa for nonsurprising reasons; to make a profit. They want to go to Africa so they can expand to new costomers that will buy their products at a place that Pepsi hasnt reached yet. Africa is mostly “mom-and-pop” stores that could cause a large growth in their annual income that is very important to Coca Cola if they want to make profit increase because in other countries, like India, Pepsi has already gotten too much “product loyalty” for Coca Cola to stand even a small chance in competing for costumers to buy their product. In Africa, the middle class is growing and since Coke already is in the lead, this means that the income for some families is increasing giving them more money they can spend on Coke products and other goods.

Coke wants to expand into Africa because they have to try to expand their company and the only other place they have left to do that is in Africa. The markets in Africa are different than the developed coutries’ because they don’t have as many competitors so there is less competition, for example, there are two choices of pop coke and fanta compare to all the other choices in the u.s. like mountain dew and root beer. I think Coke is a monopoly because they are one big company that is trying to control the entire market.

In Africa, Coke doesn’t have to compete with other companies. In many other countries, Coke has to compete with Pepsi and many other brands. But since Coke is the dominant brand in Africa, and the middle class is emerging, it will offer a good payoff. Coke is different in Africa than other countries because it doesn’t have competition. So even though Africans may not buy as much Coke than other countries, it’s still makes the most money. Coke is a monopoly.

Coke wants to get their own business into Africa to expand their franchise and increase their revenue. The markets in Africa will be fundemental since the economy is low and the population is low, while the markets in the western hemisphere will be advanced because of the higher population and the increased economy. Coke’s market structure resembels a monpolistic structure. Finally, I like all coke products.

Coke and Pepsi are the only two companys fighting for control of what you drink. The same for here and the US is the same over in africa, coke and pepsi are fighting it out to be the main consumed drink there. The reason africa is so important to both of these companys is africas growing middle class, they are increasing rapidly and they want to take advantage of this oppurntinty. They see profits in expanding all the way arcoss africa.

Coke wants to expand it’s operations in Africa because of its high growth potential. There is great opportunity to spread markets in Africa, and since Coke already holds a greater share of soda purchased, Coke has more potential. Markets in Africa are different because Africa is much less developed than other continents. This leads to potential problems such as local war or extreme poverty, a risk to Coke’s profits. Coke is a part of an oligopoly, because it and Pepsi are the only usual drinks in Africa. Lastly, I have no preference in Coke v. Pepsi, but I drink more Coke.

Coke wants to get into Africa for several reasons. Because of its high population, Africa would be a great market for Coke. They could sell a lot, and because of the low production costs, and the volume of production they can sell it for less than they can in America. It also gives them an opportunity to create jobs for Africans. The difference between African and Western markets is that there’s higher volume of trade in Western markets and there is more money to be made because of the higher prices in the west. Coke would be part of an Oligopoly. I say this because Coke and Pepsi are pretty much the only major companies in competition making beverages and they pretty much control what we drink.

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