This case analysis is designed to encourage you to analyze the distribution strategies of two multinational firms selling related products in Africa, with a focus on cultural issues related to those strategies.
Compare and contrast the distribution decisions of multinational corporations Coca-Cola and Nestlé in Africa. In particular conduct research and identify significant cultural issues which would be relevant to the development of those strategies.
Stanford D, (2010, November). Africa: Coke's Last Frontier. Business Week,1. Viewed on May 22, 2011, at http://www.businessweek.com/magazine/content/10_45/b4202054144294.htm
Stanford D, (2010) Coca-Cola's Last Unquenched Market. Businessweek.com Viewed on May 22, 2011 at http://feedroom.businessweek.com/?fr_story=d66edbc2f051289497ef3807443fe3db83330116
Burros M and Warner M, (2006) Bottlers Agree to a School Ban on Sweet Drinks, New York Times, May 4. Viewed on May 22, 2011 at http://www.nytimes.com/2006/05/04/health/04soda.html
Rasooldeen M, (2010) Soft drinks to be banned in hospitals. ARAB NEWS Jun 29. Viewed on May 22, 2011 at http://arabnews.com/saudiarabia/article75037.ece
Anon, (n.d.) Nestle invests in manufacturing, distribution in Africa. Viewed on May 22, 2011 at http://www.reliableplant.com/Read/25433/Nestle-invests-manufacturing-distribution
Maritz J, (2010). Nestlé to boost operations in Africa. July 5. Viewed on May 22, 2011 at http://www.howwemadeitinafrica.com/nestle-to-boost-operations-in-africa/2316/
Wilson S (2008). Coca Cola distribution chain can save lives in Africa. Viewed on May 22, 2011 at http://tech.blorge.com/Structure:%20/2008/07/30/coca-cola-distribution-chain-can-save-lives-in-africa/
Please find guidelines and ideas for Distribution Strategy in the attached file.
Coca-Cola is an international soft drink company. In Africa, Coca-Cola operates its business directly and with the help of franchise (Coca-Cola, 2011). In Africa, Coca-Cola uses that type of distribution strategy, which saves the life of children and improves the communities. For capturing the local market of Africa, Coca-Cola uses small independent local businesses. Coca-Cola uses customer oriented distribution strategy that protects the life and culture of the people.
In Africa, under its distribution channel, Coca-Cola uses Manual Distribution Centre (MDC) model. This model operates in densely populated areas around large cities and towns. The MDCs are an independent business that links local bottler and it provides technical supports (Saul, 2010). Over the next years under its distribution strategy, the organization will spend its distribution channel in Africa.
Organization will spend 1300 to 2000 new independent distribution business in Africa. These centers will boost the sales of Coca-Cola. Under MDC model, company identifies and appoints independent entrepreneurs (Saul, 2010). With the help of this model, the company distributes its product in those areas, where road and transportation system are not available and, lack of basic infrastructure facilities. Before preparing its distribution strategy, Coca-Cola concerns the cultural issues of Africa. It follows that distribution strategy, which protects the values, beliefs etc. of the consumers.
On the other hand, Nestle is the world's leading Health, Nutrition and Wellness ...
The following posting provides guidance for an assignment that involves comparing and contrasting the distribution decisions of multinational corporations.