Cartel and the Cocaine Industry Essay

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Cartel and the Cocaine Industry The drug cartel based in Cali, Colombia, was one of the largest players in the multi-billion dollar worldwide cocaine industry. Although their operations are highly illegal, opposed by both Colombian and US law enforcement agencies, the cartel continues to run a very effective operation. The vast majority of this cocaine is destined for the US market. It reaches the US by numerous routes - by air, by sea, but mostly over land by Mexico. Once the cocaine reaches the United States, Cali has makes use of its distribution network to deliver the drugs wholesale to the retailers, typically ethnic crime gangs. The Cali cartel is similar in its methods with many of the Mexican cartels. Cali and the Mexican …show more content…
South America has a virtual monopoly on the supply of coca leaves. The region is also a very efficient producer of other illegal agricultural products, such as opium poppies and marijuana. Cali's main weakness is the fact that the product it sells is illegal. This puts it at a competitive disadvantage with respect to legal narcotics, such as tobacco, alcohol, and Valium (Holloway, 1988). It faces much higher operating costs, contracts are not enforceable, and it has no access to traditional advertising media. This is by the fact that it is exempt from government regulations and taxes. Cocaine is essentially a commodity product, sold on price and purity. This means Cali cannot differentiate its product from other traffickers. However, this is not a serious weakness. Although Cali attempts to reduce the risk by using multiple routes, interdiction of a major shipment can cause a temporary loss of market share. As a high profile organization, Cali faces more intense scrutiny from law enforcement agencies than smaller independent traffickers (Bernards, 1990). With limited border checks and a relatively immature cocaine market, Europe in particular provides a significant opportunity for growth. Stimulate end-user demand. Attempt to get cocaine accepted as a fashionable drug again by associating it with high

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