Value Chain Analysis:
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Published: Mon, 5 Dec 2016
Research and Development:
The Coca-Cola Company has invested more than $60 million to build the world’s largest plastic-bottle-to-bottle recycling plant and support recycling.
“The Coca-Cola Company is a company with the power to transform the marketplace, and the introduction of the “PlantBottleâ„¢” is yet another great example of their leadership on environmental issues”( Carter Roberts, President and CEO of World Wildlife Fund, U.S).
Interactive vending machines
Climate friendly coolers.
Amatil’s association with Cocacola date back to 1964 and from then, Coca Cola Amatil ruling the roost in Australian Non alcholic beverage industry. CCA manufactures wide range of carbonated drinks like Coca Cola, Diet coke, Vanilla Coke, Sprite etc.,and recently started manufacturing well being products like fruit juices, water, low calorie carbonated drinks.
After acquiring SPC Ardmona in 2004, CocaColaAmatil also entered the food manufacturing and distribution business. CocaCola Amatil manufactures its finished products from the concentrate and beverage base supplied by THE CocaCola Company.
Marketing and Sales:
Through out the century of existence, the name “Coca Cola” became its own marketing symbol. The name itself is perceived as a epitome of brand value and quality by the millions of its customers. CCA mainly bank its marketing strategy on the availability of its products to the customers. “By being part of the Coca-Cola system CCA has access to the world’s most popular branded beverages supported by strong advertising and unique marketing properties. CCA and TCCC are working together to utilise their complementary skills and assets, to profitably build consumption in each of our market”< http://www.ccamatil.com.au/relationshipWithTCCC.asp>.
TCCC’s main marketing strategy include heavy advertising and promotion by sponsoring sports events and roping international celebrities as brand ambassadors. TCCC funds the marketing activities of coming up with new brands and different packaging plans. The sales and marketing plans are developed together by both the companies every year using their skills and assests.
CCA and TCCC are affiliated to the communities in which they operate from sponsoring development programs of physical fitness and life style skills to sponsoring major sporting events. CCA also participates in assisting the communities in the time of any natural disasters. “CCA and TCCC have established foundations in Australia and Indonesia to provide assistance to community development activites to assist young people to realise their potential.”< http://www.ccamatil.com.au/coca-ColaFoundations.asp>
CocaCola Amatil has a national call center “ Coke Connect” which undertakes all the consumer enquiries and customer requests by giving accurate, clear and prompt service. The consumer information center with in the coke connect takes all the consumer feedback and then feed the information at the organisation level through out the world and also be included in its monthly management report and the feedback is considered in making business decisions. By knowing what customer needs and thinks, CCA is always keep itself in delivering best customer service possible. http://www.ccamatil.com.au/customers_consumers.asp
Coca Cola is built on its core assests of its people and its brand value. Coca Cola believes that the work place should be a place which involves with creativity, innovation, professional relationships and professional growth. Coca Cola has 92400 associates world wide and many more supportive staff of which 86% are from outside United states which makes CocaCola inculcate its business environment with local culture of its employees and keep learning from this local cultures as cultures matters a lot in the success of a product in a local community. CocaCola follows a decentralised system in decision making in which it tries to incorporate ideas and concepts from its employees and passing them across all the departments for further evaluation.< http://www.thecoca-colacompany.com/ourcompany/meet_our_people.html>
CocaCola established its trademark since its inception in 1986 in United states. The company’s every operation from manufacturing to delivering is supported by its strong infrastructure base. Some companies like spherion, Jones lang lasalle, IBM, Ogilveyand mather,prudential provide TCCC with basic ingredients and bottling and delivery machines. The Logistic operations of CocaCola Amatil in Australia is outsourced to LINFOX logistics which assisting Coca Cola to keep it value in delivering. This understanding between Linfox and Coca Cola may help TCCC to come up new products and its new logistic demands can be met in time.
Core Competency Analysis:
People relate themselves to the brand value of a company. A brand value makes the consumer choices easy and this brand image gives the company a competitive edge over its rivals. Brand value brings trust in customers and it takes a lot of investment to keep the brand image intact over the years and this Coca cola’s strong brand identity through out the years rose its sales into an unprecedented levels.
In 2007, TCCC’c brand value is 44.13 billion US$ and it was regarded as the world’s fourth powerful brand only lying behind Microsoft, Google and GE, as per the Millward Brown’s BrandZ index. The TCCC’s greater brand value allows its consumers revisit and makes its entry into a new market easy. < http://finance.mapsofworld.com/brand/value/coca-cola.html >
Large Scale of Operations:
CocaCola beverage products are available easier than water in this world. We will find CocaCola vending machines in almost every educational institution of the world and their easy access in public places. The main advantage of CocaCola is its easy availability than any of its rivals.
Innovation is a heart of any company which continously strive to make any difference in the competitive environment. Differentiation in its products gives CocaCola a edge in attracting many customers or consumers. Coca Cola displays its ability to innovate in its products, equipment, packaging and in the external environment. It recently launched its ‘JIANCHI’ health product in Milan, which inculcates 5000 years of chinese wisdom in that bottle. TCCC also invested 60 million in building a bottle to bottle recycle or reuse plant in North America as part of its mission to recycle 100% of its products. It also came with innovative climatic friendly vending machines or coolers which reduced carbon emission by 99% and has a smart detective system which reduce energy use by 35%.
< http://www.thecoca-colacompany.com/ourcompany/innovation.html >
Any company’s performance whether it is small or large can be analysed by taking its financial figures into consideration. In today’s business world, It is reality that numbers count a lot than anything else in analysing a company’s performance. Coca Cola witnessed Net operating revenue growth of 11%, operating income growth of 16% and unit case volume growth of 5%.
CocaCola holds 1st position worldwide in terms of sparkling beverages, juices and juice drinks and ready to drink coffees and teas, comes 2nd in terms of sports drink and 3rd in terms of packaged water and energy drinks.
TACC’s motive of “ A beverage for every need” is the energy behind CocaCola’s success with more than 3000 products in more than 190 countries. The company head quartered in Atlanta, Georgia, employs nearly 71000 people (In Year 2006) and 74% of its products were sold outside United States. Its portfolio includes 13 billion dollar brands and has a company associates of 92400 people world wide. The CocaCola Company has different strategic business units for its product types like Sports drink, Juice drinks, Squash, Water, Low sugar soft drinks, general soft drinks and energy drinks. 49.9% of all coke products are sugar free.
Portfolia of Coca Cola includes many brands which evolved throught out the history of Coca cola and some of the brands include Barq’s, CocaCola, Coke zero, Diet Coke, Glaceau, Fanta, Minute maid, Fuze, Thumsup, Vault, Powerade etc.,. CocaCola touches 1.5 billion lives a day. Coca Cola added 200+ juice and juice drink products to its portfolio in 2008 and accommodated 700+ low calorie or no calorie products in its profile. In Australia, CocaCola Amatil acquired SPC ARDMONA in 2004 which is a food manufacturing brand and this may help CocaCola in establishing strategic business unit for manufacturing chips.
Now a days, Coca Cola is much about health and wellness.
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