Strength & Weakness of Coca Cola
The purpose of this integrated essay is to explore the strengths and weaknesses of Coca Cola (Coke) using the Value Chain Analysis Framework developed by Michael Porter. Using Exhibit I from Porter's Framework, I examined the linkages and strategic significance of Coke's value system.
DESCRIPTION OF THEORIES/CORE CONCEPTS
According to Michael Porter (1985), information technology changes the way companies operate by specifically targeting how companies create their products. Porter divided the business operation process into value activities that were either technologically or economically based. Porter then stated that performing the value activities at a lower cost or creating a differentiated, premium-paid product yields a competitive advantage.
Exhibit I classified the value chain activities as either primary or secondary. Primary activities include all facets dealing with product creation, sales, delivery, and servicing new products. On the contrary, secondary activities support the primary activities by providing all services necessary to ready the product for the customer. (Porter, 1985). An example of a supporting activity would include the hiring activities of the human resource department. Their duty is to hire skilled employees to produce the company's products.
Lastly, Porter addressed the linkages that exist between interdependent activities in the company's value chain and with suppliers. Often interdependent activities lead to trade-offs in areas such as performance, cost, and quality. Optimization of those trade-offs leads to a strong competitive advantage. Whereas a failure to capitalize on those trade-offs causes numerous issues include low sales, loss of competitive edge, and layoff.
Coca Cola (Coke) is the largest manufacturer of non-alcoholic beverages in the world. Coke markets over 500 products in over 200 countries. With...
References: KO Income Statement | Coca-Cola Company (The) Common Stock - Yahoo! Finance. (n.d.). Retrieved September 4, 2014, from http://finance.yahoo.com/q/is?s=KO&annual
Porter, M.E. & Millar, V.E. (1985). How information gives you competitive advantage. _Harvard Business Review, 63_(4), 149-161. Retrieved from http://zaphod.mindlab.umd.edu/docSeminar/pdfs/Porter85.pdf
SWOT of Coca Cola. (n.d.). Retrieved September 4, 2014, from http://www.marketing91.com/swot-coca-cola/
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