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Introduction

Coca Cola markets nearly 2,400 beverages products in over 200 geographic locations. As a result development of a superior value system is imperative to
their operations. Throughout this paper we will analyze their value system by using Michael Porter’s value chain analysis model. In an attempt to paint
a current picture of the non-alcoholic beverage industry we will assess the market activity by using mergers, acquisitions and IPO’S as our benchmarks
to determine if the market is growing or contracting.

Value Chain Analysis

A value chain is a model used to disaggregate a firm into its strategically relevant value generating activities, in order to evaluate each activity's
contribution to the firm's performance (Terms V 2006). Through the analysis of this model we can gain insight as to how a firm creates their competitive
advantage and shareholder value.

The value chain of the nonalcoholic beverage industry contains five main activities. These include inbound logistics (suppliers), operations, outbound
logistics (buyers/ customers), marketing and sales, and service.

Inbound Logistics (Suppliers)

Some of Coca Cola’s most notable suppliers include Spherion, Jones Lang LaSalle, IBM, Ogilvy and Mather, IMI Cornelius, and Prudential. These
companies provide Coca Cola with materials such as ingredients, packaging and machinery. In order to ensure that these materials are in satisfactory
condition, Coca-cola has put certain standards in place which these suppliers must adhere to (The Supplier Guiding Principles). These include: compliance
with laws and standards, laws and regulations, freedom of association and collective bargaining, forced and child labor, abuse of labor, discrimination,
wages and benefits, work hours and overtime, health and safety, environment, and demonstration of compliance (Coca Cola 2006).
See Appendix for additional information:

From time to time, Coca-Cola uses third parties to assess their suppliers by having interviews with employers and contract workers. If a supplier has issues
about the supplier guiding principles, they are usually given a certain amount of time to take corrective measures; if not, Coca-Cola has the right to
terminate their contract with these suppliers.

Operations

Coca Cola’s core operations consist of Company-owned concentrate and syrup production (Coca Cola 2006). According to their website, some of the
main environmental impacts of their business occur further along the value chain through system's bottling operations, distribution networks, and sales
and marketing activities (Coca Cola 2006). Management of these operations across the business value chain tends to be more challenging outside of the
core operations. According to Coca Cola, they continue to address this by working with their partners to reduce the effects at every level of the
manufacturing process by enlarging their comprehension of the complete environmental impact of their business through the entire lifecycle of their
products from ingredient procurement to production, delivery, sales and marketing, and post-consumer recycling (Coca Cola 2006).
Please see Appendix for additional information.

Outbound Logistics (Buyers/ Customers)

The activities required to get finished products to customers include warehousing, order fulfillment, transportation, and distribution management. Coca
Cola has the world’s largest distribution system. They own, lease, and operate in over 800 plants around the world (Coca Cola 2006). The 2,400
beverage products which they market reach consumers in more than 200 different geographic locations (Coca Cola 2006). Grocery stores such as Sobeys,
fast food restaurants such as McDonalds (fountain sodas), and vending machines are just a few of the distribution units used to ultimately reach
consumers.

Coca Cola has over 300 bottling partners which range from publicly traded businesses to small family owned operations (Coca Cola 2006). They have
implemented the “Coca Cola System” in which they work cohesively with their partners in order to develop strategies aimed to meet the needs of all
their customers.

Examples of their commitment to these strategies are seen in their plant in Indonesia, where boats are used to transport the products between hundreds
of islands throughout the Amazon. This is often because waterways are often the main way to access these remote islands. In some of the higher
elevations of in the Andes, Coca Cola products are sometimes transported by four-legged power. Across much of Africa, bottlers deliver to thousands of
family-run kiosks and home-based stores.

Marketing and Sales

Out of approximately 2,400 products, Coca Cola markets four of the worlds top sales drink brands. Although the industry is relatively small and they only
directly compete with two companies, creativity is a vital marketing strategy to Coca Cola.

Coca Cola’s ultimate goal is to deepen their brands’ connection with consumers. As a result, they have to constantly reinvent their product (Coca
Cola 2006). The marketing strategy they use is directly linked to the consumer; from advertising, to point of sale, to ultimately opening and consuming a
Coca Cola beverage. Techniques which they have used to achieve this include developing new products and brands, changing the design of their
packaging, and designing various new advertising campaigns (Coca Cola 2006).

On October 19th, Coca Cola reported their earnings for the third quarter. Earnings per share are up which results in higher benefits for shareholders.
According to Neville Isdell, CEO of Coca Cola, they have experienced a growth in sales of five percent compared to the same quarter last year. This is as a
result of balancing performance across their global markets and their product portfolio (Coca Cola 2006).

Service

Activities that maintain and enhance a product’s value include customer support, repair services, installation and training.

Coca Cola’s customers range from large international retailers and restaurants to smaller independent businesses and vendors. As a result, they
provide services tailored to meet their customer’s needs.

Coca Cola also supports their customer’s by providing them with the training necessary to help their businesses become more effective and profitable.
They have established Customer Development and Training Centers which are available to more ...
History It is rare to find any staple of American life that has its roots in the preceding century. This is one facet of the Coca-Cola Company that makes it
very interesting. From its very meager beginnings, to a multinational fortune five hundred company that has the distinction to serve over one billion
people in the course of a day. Dr. John Stith Pemberton founded the Coca-Cola Company in 1886. The first batch was mixed in a three legged brass kettle
in his back yard. He then distributed it at the local pharmacy. That first year sales of Coke averaged nine drinks a day, and grossed $50. Since it actually
cost $70 to produce the entire supply of product for that year money was actually lost. Confectioner Joseph Biedenharm first bottled Coke in the summer
of 1894. This complemented the fountain soda production of that year. This contributed to the spread of the popularity of the product that was consumed
in every state and territory of the United States in 1895. Expansion was quick to follow to keep pace with growing demands for Coke. Its interesting to
note that this growth was under direction of Asa G. Candler who purchaed Coca-Cola Corporation in its entirety for the sum of $2,300. It was also under his
direction that the unique contoured bottle was developed. This has remained a distinct feature of this product and effectively separated it from its lesser
competitors. A few years later in 1919 the C...

Swot Analysis Of Coca-Cola


SWOT Analysis of Coca-Cola:

SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique much used in many general management as well as marketing scenarios. SWOT
consists of examining the current activities of the organization- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and
Threats that exist.

Strengths:

1. Beverage Experience
2. Personnel Relations
3. Knowledge Regarding Competitor
4. Hardworking Staff & Distributor
5. More Market Share in Textile Sector
6. People Reliance on Quality of our Product and Brand
7. Merchandising and Global Score Rating (Gives Strength to educate market about improving sales)
8. Coca-Cola has been a complex part of world culture for a very long time.
9. The product's image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and
collectible memorabilia.
10. This extremely recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple,
yet powerful symbol of quality and enjoyment" (Allen, 1995).
Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach.
The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not
have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers.
Lower cost of production
Demonstrably superior service
Presented a very complex product
Extensive advertising, good promotions or marketing programs…..don't stop here, keep studying your competitors

Swot Analysis Of Coca Cola


SWOT ANALYSIS
The Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor and marketer of
Non-alcoholic beverage concentrates and syrups, in the world. Coca-Cola has a strong brand
name and brand portfolio. Business-Week and Interbrand, a branding consultancy, recognize
Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006. The
Business Week-Interbred valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks well
ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690
million The Company’s strong brand value facilitates customer recall and allows Coca-Cola to
penetrate markets. However, the company is threatened by intense competition which could have
an adverse impact on the company’s market share.
Strengths
Weaknesses
World’s leading brand
Large scale of operations
Robust revenue growth in three segment
Negative publicity
Sluggish performance in North America
Decline in cash from operating activities
Opportunities
Threats
Acquisitions Intense competition
Growing bottled water market
Growing Hispanic population in US
Intense competition
Dependence on bottling partners
Sluggish growth of carbonated beverages
Strength of coca cola
Coca-Cola has strong brand recognition across the globe. The company has a leading brand
value and a strong brand portfolio. Business-Week and Interbrand, a branding consultancy,
recognize. Coca-Cola as one of the leading brands in their top 100 global brands ranking in
2006.The Business Week-Interbrand valued Coca-Cola at $67,000 million in 2006. Coca-Cola
ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of
$12,690 million Furthermore, Coca-Cola owns a large portfolio of product brands. The company
owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta.
Strong brands allow the company to introduce brand extensions such as...

Swot Analysys Of Coca Cola


Coca-Cola acquires full ownership of Philippines bottler from San Miguel Corporation
Wed Feb 21, 2007 5:07pm EST
[pic][pic][pic][pic][pic][pic][pic]Co and San Miguel Corporation jointly announced today that The Coca-Cola Co has acquired San Miguel's 65% shareholding in Coca-Cola
Bottlers Philippines (CCBPI). CCBPI also owns Cosmos Bottling Company and Philippine Beverages Partners, Inc. San Miguel Corporation was previously the majority
shareholder of CCBPI and had management control of the bottler. The Coca-Cola Company now has full ownership of CCBPI. The total consideration of the transaction is
US$590 mln.
The Coca-Cola Company (NYSE: KO) is a beverage company, manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. The company is best
known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who
incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 400 brands in over 200 countries or territories
and serves 1.6 billion servings each day.[5]
The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers
throughout the world who hold an exclusive territory.
The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000
Growth Stock Index. Its current chairman and CEO is Muhtar Kent.