Analyze Coca-Cola and Its Business Strategy Using the Value Chain and Competitive Forces Models

Analyze Coca-Cola and its business strategy using the value chain and competitive forces models.

Ans.

Firm Level

A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of the independent activity's value.

Activities

The value chain categorizes the generic value-adding activities of an organization. The "primary activities" include: inbound logistics, operations (production), outbound logistics, marketing and sales (demand), and services (maintenance).

Coca –Cola is doing their business throughout the whole world in an established market. There is a pure competition market in that industry. They are providing their company all these primary values.

The "support activities" include: administrative infrastructure management, human resource management, technology (R&D), and procurement. The costs and value drivers are identified for each value activity.

The most important action is done in the support activities. This is the part where Coca-Cola is investing much and maintaining sustainable competitive advantage.

From the point of competitive forces model:

Traditional competition:

Prices of Pepsi, local brand „

Market share

Promotional actions of competition

Light, diet coke, cherry coke. variations

New entrants:

New "look-a-like" manufacturers (foreign; global competition)

Substitute products

Fashionable new drinks, Red Bull, Cold coffee, Belgian beer, ...

Suppliers:

Price and availability of ingredients on world market

Quality speed safety „ Quality, speed, safety,

traceability, flexibility of supply chain

Buyers/consumers:

„ Consumer taste, fashion, Combined purchase power of shops, supermarkets

What is the relationship of collaboration and knowledge management to Coca-Cola's business strategy?

Ans.

Coca-Cola has to maintain its employees throughout the whole world. Their employees are required to get quick access to information. The development of collaboration technology helping them to get access quickly and given a structured form of information. Through this they are sharing knowledge among the Coca-Cola work team. Coca-Cola is now running their activities in a much structured form. They are using a standardized platform web for knowledge sharing.

How is Coca-Cola using knowledge management systems to execute its business model and business strategy?

Ans.

Basically Coca-cola using both internally and externally knowledge management systems to execute their business model and