Coca-Cola

Dropbox #2 Coca-Cola

After reading the Coca-cola case study, standardization being the first topic; the case points out that “that if Coke and its bottlers are speaking the same language, so to speak, using the same technology, then the supply chain management application will be more efficiently streamlined.”(Haag & Cummings,59) With Coke developing its own set of software services for bottlers to use, can only make standardization easier and flow more accurately, by “saving money and reducing expenses associated with chain supply activities.”(59) As for Coke charging bottlers for the software services, I think it could go either way, but if I were in charge, I would not charge for the software, because if you develop an easier way for bottlers to make YOUR product, then it is to your advantage, this only assists with standardization. If a company wants to follow a process and stay the same throughout its plants/operations then they need to make the software readily available for all its bottlers.

As for how a My Coke reward is an example of switching cost, I believe it to be an extra perk for Coke drinkers. If I remember correctly, from previous classes, a switching cost is the cost that it takes to change a customer from buying a product to buying your product. As for the “extra perk” I would say Coke offers the rewards program, as an incentive to buy their product, the more the customer buys the more the rewards they can earn. I do not think that Coke’s switching cost has a monetary penalty, because they are not actively developing a new product, they are simply adding an incentive to their products, and this not only may attract new customers, but keep current customers.

Answering the question about obtaining information about business intelligence from its rewards website could be that polls and surveys. My rewards could have comments section to provide feedback about the product, other products, and its rewards program as well. By knowing more...