Coca Cola Value Chain Analysis

Company background

The Coca Cola Company is a multinational beverage corporation and manufacturer producing primarily sparkling beverages but also a variety of still beverages, such as waters, enhanced waters, juices, ready-to-drink teas and coffees, and energy and sports drinks. It is headquartered in Atlanta since its founding

The company is best known for its Coca Cola product invented in 1886 by pharmacist John Stith Pemberton in Georgia. Coca cola licences and markets more than 500 beverage brands including: Coca-Cola, Diet Coke, Fanta and sprite. It has the world largest beverage distribution system with consumers in more than 200 countries selling 1.3 billion beverage servings every day. Almost 70% of sales are generated outside North

Both companies have the same activities i.e. outdoor events making them compete with each other. There are other competitors in the industry which became popular lately like Dr Pepper which has a similar flavour.

Coca cola value chain analysis

A value chain is the way in which primary and support activities are combined to provide goods and services and increase profit margins. The value chains of non-alcoholic beverage industry contain the fallowing activities:

1. Suppliers

Coca-Cola’s most known suppliers are Spherion, Jones Lang LaSalle, IMB, Prudential etc. These suppliers provide the company with materials such as ingredients, packaging and machinery. Coca cola uses some standards when it comes to their suppliers in order to ensure satisfactory conditions for their supplies. These include: compliance with law , regulations , freedom and collective bargaining , child labour , discrimination , wages and benefit , work hours , Health and Safety , environment

Operations

The company`s operations consist of manufacturing and selling concentrates, beverage bases and syrups to bottling operations. Their bottling partners manufacture, package, merchandise and distribute the final beverages to customers and vending partners. In 2006 Coca-Cola owned bottling operations were brought together to form the Bottling Investments operating group making it the second largest bottling partner in the Coca-Cola system. This group is dedicated to investing in Coca-Cola bottling operations.

3. Outbound Logistics

In order to get finished products to consumers Coca-Cola has a range of activities: warehousing, order fulfilment, transportation and distribution management. Coca-Cola has the world largest distribution system, owning, leasing and operating in over 800 plants around the world. The 2400 beverage products which the distribute reaches consumers in more than 200 geographic locations in grocery stores, fast food restaurants and vending machines.

One of the activities that show their commitment to customers is in their plant in Indonesia where they use boats to transport products between hundreds of islands because waterways are the main way to access these islands.

4. Marketing and