Coca cola value chain analysis is an analytical tool to plan and visualize business activities that creates a competitive business advantage for the company and adds value to the final product. An efficient value chain helps the company identify activities and areas of improvement where they can reduce or maintain the production cost for their products or services and increase profit by managing each process. Companies also use value chain analysis to reduce the waste of resources and optimize business efforts. Coca-cola is the world's leading and most recognizable soft drink maker and supplier brand. Like any other business, it started as a small idea that reached its current success with operation in nearly every country worldwide. Coca cola’s value chain gives in-depth details about making a brand successful. We will discuss the activities of the coca-cola value chain here and learn how PDF Agile makes it easier for you to convert PDF reports.
Background of Coca Cola
Coca Cola is the world's largest soft-drink maker founded by John Smith Pemberton and Asa Griggs Candler 130 years ago in Atlanta. Coca Cola startup was a little different from other companies and brands. John Pemberton was a pharmacist from Columbus who invented coca-cola as a drink or medicine for headache relief. The drink was later named, promoted, and brought into the market by Frank M. Robinson. The drink's names come from the two ingredients, coca leaves and kola nuts, used to prepare the beverage. Griggs Candler was a US businessman who bought the brand from Pemberton's heirs and reestablished the brand under a new name, the coca-cola company. He was also the first businessman who advertised his brand through merchandising.
Primary Activities in Coca Cola Value Chain Analysis
The Coca Cola value chain analysis outlines five primary activities essential for a compelling value chain analysis.
Inbound logistics includes the activities and processes involved in purchasing, receiving, storing, and managing raw materials from suppliers to create products. The large supply chain of the coca-cola company helps create a competitive business advantage at the primary steps. It enables the company to maintain the advantage as the processes move forwards till the final product is created and distributed to sale channels. Tens of thousands of farmers work for the coca-cola supply chain, and the company regards them as partners. They purchase raw materials from fixed suppliers, and all of them get a guide from the company that gives them details about some regulations and principles. The coca-cola value chain also promotes environmentally friendly workplace activities and policies.
Coca-cola is the most recognized worldwide beverage brand, operating in more than 200 countries. Although it is a global business, the company has the tradition of working through local channels that add to its trust with related companies and bottling partners making them stay loyal to the company and gain more success. The operation activities in the coca-cola value chain include headquarters administrations and the development of each process. Coca-cola does not control or run its bottling partners, but it is responsible for the consumer brand marketing initiatives.
Outbound logistics refers to the activities, processes, and distributors involved with delivering the company’s products and services to customers. Coca Cola managed to reach the top with its high-quality services and delicious soft drinks that everyone likes to drink. Thousands of retailers work with coca-cola, and the company makes sure that there is no limited stock or shortage of products available in warehouses and facilities. Bottling partners and distributors are the main stars of outbound logistics in the coca-cola value chain. They create the packaging and coca-cola merchandise and are responsible for timely deliveries of the final product to customers and vendors.
Marketing and Sales
Coca-cola got its current success and became the world's leading beverage company from its innovative marketing strategies. The company has been advertising its products with promotions, merchandising, sponsorships, and media for a long time. Everyone knows the never-changing great taste of coca-cola drinks, and the red color represents the brand. Coca-cola value chain analysis helps the company increase their sales in all 200+ countries through partnerships with other brands like McDonald's. Coca-cola scores more sales than other products because customers can buy their drinks from stores, supermarkets, and vending machines.
Coca Cola is well-known for its fast and high-quality customer service. The company provides customer care, answers queries, and tries to solve any problem that might be unpleasant to the customers through its highly efficient call centers. The centers operate 24/7, where people worldwide can call for queries or file complaints. The coca-cola value chain uses these primary activities to increase customer loyalty.
Support Activities in Coca Cola Value Chain Analysis
The value chain analysis for coca-cola highlights four crucial support activities.
Value chain analysis contains support activities like the infrastructure of the company. Coca Cola infrastructure includes multiple activities essential for a successful business. The company's infrastructure defines work efficiency, productivity, and critical planning to support its value chain. Its infrastructure defines excellent work efficiency and productivity with a restaurant that focuses on green activities and a pleasant workplace environment.
Human Resource Management
Human resources management is one of the fortes of the coca-cola company as they regularly hire new talents and individuals with great potential and provide them with the best training in a friendly learning environment. Employees grow in the company based on their skills. All employees who work at coca-cola bottling factories receive handsome salaries while the workplace provides them with motivation and engagement.
Being the world's leading soft drink maker, Coca-cola focuses on research and technology development to improve its product standards and provide better services. The company also operates six research and development centers worldwide that work for the technology development of, production and distribution of the company's products.
Procurement is the purchasing of inputs to create products and services to increase the efficiency of the value chain. Coca-cola procures raw materials from thousands of farmers and fixed suppliers. The company maintains a trusting relationship with its suppliers and uses technology that makes the procurement process more efficient.
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Value chain analysis is the best tool for strategic planning and business activity analysis. It identifies the primary and support activities for the success of any business and delivers the best value at the least possible cost. Coca Cola value chain analysis is the best example of how you can make your business more profitable and successful using the correct value chain strategies. PDF Agile is the best PDF editor and convertor, with many creative tools for editing, converting, and compressing your PDF document. It supports multiple formats and comes with an easy-to-use interface.
Linkedin “Value Chain Analysis of Coca Cola”: From https://www.linkedin.com/pulse/value-chain-analysis-coca-cola-jorge-yeshayahu-gonzales-lara
Notesmatic “Coca Cola Value Chain Analysis”: From https://notesmatic.com/coca-cola-value-chain-analysis/
The Coca Cola Company “Coca Cola System and Value Chain”: From https://www.coca-colacompany.com/policies-and-practices/coca-cola-system-and-value-chain
Business Research Methodology “Coca Cola Value Chain Analysis”: From https://research-methodology.net/coca-cola-value-chain-analysis/.