U.S. Tech Giants Flock to Africa to Compete
- January 22, 2016
- Posted by: addisinvestment
- Category: Finance & accounting
Not so long ago, Big Business saw Africa as a charity case. Much of the investment by multinational corporations across the continent was geared more toward burnishing corporate sustainability programs—building schools, planting trees, offering occasional internships—than gearing up for future growth.
Today the picture has changed radically. In the past few years, U.S. technology companies have begun to invest heavily in Africa.
Why? They suddenly grasp the huge potential for customer acquisition. Africa has a combined population of over 1 billion people spread out over its more than 50 countries. And it boasts seven of the world’s 11 fastest-growing economies, with Ethiopia, the Democratic Republic of Congo, and Ivory Coast leading the charge. It’s also very much a mobile-first audience, as 99% of internet subscriptions on the continent are via handheld devices.
What’s more, as big tech companies grapple with market saturation in other markets, Africa is increasingly being seen as a “final frontier” for new customers. Alert to this, the likes of Alphabet (GOOG, +0.24%), Facebook (FB, +0.73%), IBM (IBM, +0.35%), and Microsoft (MSFT, +0.17%) have been stepping up their business operations.
READ the whole article @ http://fortune.com/2016/05/26/u-s-tech-giants-flock-to-africa-to-compete-for-digitals-final-frontier/
- Growth through innovation/creativity:
Rather than be constrained by ideas for new products, services and new markets coming from just a few people, a Thinking Corporation can tap into the employees.
- Increased profits:
The corporation will experience an increase in profits due to savings in operating costs as well as sales from new products, services and ventures.
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The link between profits and business value means that the moment a corporation creates a new sustainable level of profit, the business value is adjusted accordingly.
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This, combined with the culture that must exist for innovation and creativity to flourish, means that new employees will be attracted to the organization.