Africa: a new potential of growth for Danone through multiple acquisitions
Purpose The purpose of this paper is to analyze the new opportunities that offers Africa to companies. Groups working in the bank, telecommunication and petroleum sectors know Africa’s attractiveness for a long time. However, food companies are now more and more interested in this continent too, especially thanks to key factors: a high growing gross domestic product, an emerging middle-class, a high birth rate […] Danone is an interesting case of this phenomenon. The company which is one of the main worldwide player in the food market decided to go into mergers and acquisitions in Africa since the 2000s; its strategy and its results will be analyzed. Design/methodology/approach General review. Findings It is shown that Africa brings new markets and revenue sources to companies. As a first mover, companies can take a competitive advantage over competitors in developing their activities in a new growing market. However, before entering Africa, companies must collect relevant information and have a strong strategy. In fact, some countries of this continent are still instable; that is why, companies have to be careful before investing in one of them. Additionally, the paper reveals that the first key to success in Africa in the food industry is to adapt products to local needs, culture and way of life. Originality/value Africa is still a relatively untapped market, and mergers and acquisitions in Africa represent a promising opportunity for companies that want to expand their activities, and the current trends predict a great development of investments in Africa.
Year of publication: |
2016
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Authors: | Bouchet, Christelle |
Published in: |
Strategic Direction. - Emerald Group Publishing Limited, ISSN 1758-8588, ZDB-ID 2089990-7. - Vol. 32.2016, 9, p. 28-31
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Publisher: |
Emerald Group Publishing Limited |
Subject: | Strategy | Africa | Acquisitions | Mergers | Food industry | Danone |
Saved in:
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