Coca-Cola Is Everything

W2 Assignment "Coca-Cola Is Everything"

November 19, 2013

When it comes to the world's most powerful brands, Coca-Cola is still number one. Coca-Cola is a global leader in the beverage industry; the company offers hundreds of brands, including soft drinks, fruit juices, sports drinks and other beverages. However, their success is based on Coca-Cola being able to fill supply and demand by gaining customers and keeping existing customers. I will further explain how Coca-Cola continues to progress and the ways that they are achieving these goals.

The supply chain management is ensuring a smooth flow of inventory to companies ensuring the product or service is there when the customer wants to buy it. Standardization can help to eliminate excess inventory and products that can become obsolete costing money for companies. Standardization is very important in supply chain management because the process of supply chain management will be more efficiently streamlined. Companies can save money by reducing expenses associated with supply chain activities. I would not think that Coke would charge the bottlers for these software services because Coke's bottlers should be owned by the Coca-Cola Company. Bottlers would just purchase the operations of bottling.

Switching cost is defined as "cost that make customer reluctant to switch to another product or service supplier" Haag & Cummings (2013). Coke launched their marketing program in 2006 called "My Coke Rewards" to reward customers for their loyalty to Coca-Cola and keeping those customers from buying their competitors' products. "My Coke Rewards" is an example of a switching cost because it is a cost paid by the Coca-Cola Company to gain customers and keep existing customers by giving them an incentive for becoming a Coke customer. As long as the Coca-Cola Company retains their existing customers and if they can get an increase in new customers, they will not have a monetary penalty associated with the switching cost.

Business