Bernards, 1990). 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 profile celebrities. Increase end-user demand by targeting users of "soft" drugs, possibly with cocaine-derived products that are taken orally (Bernards, 1990). The organizations based in Mexico work much the same way that their predecessors and mentors from Cali worked over the years. By maintaining their headquarters in foreign countries and conducting all the details of their business in a protected environment, the heads of organized criminal drug trafficking organizations in Mexico have been able so far to avoid arrest in the United States. Based in Tijuana, the Arellano-Felix Brothers organization (AFO) is ...
