Coca Cola

Coca-Cola Is Everything

Robert Smith

Grantham University

Importance of Standardization in Supply Chain Management

Standardization is of essential importance in the supply chain management because ultimately, it saves money and improves the quality of the product. Having a product like Coke, is pivotal for having standardization because no one would like to “taste the goodness” of Coke in the United States and the same product tastes different in Europe. The only diversion from the standardization of the Coke product is in Mexico. This particular Coke taste is preferred among several consumers because of its natural taste which is derived from the natural cane sugar that is used in the process instead of fructose (Wikipedia, 2014).

Personally, I believe Coke does charge its independent bottlers a fee for its software services. This fee is often rolled up into a charge called a franchise fee. Without the constant improvement in the way the bottling companies market and standardize its products, Coke would not be the mega company that it is today.

Coke Rewards and Switching Cost

My Coke Rewards is a great example of switching cost. Coke gives it customers more benefits of staying with the company other than brand loyalty. Coke spends lots of money giving away prizes for buying Coke and its subsidiary products by luring them to the My Coke Reward website with chances of the opportunity to earn and win prizes. Coke entices its customers to stay with them rather than switch over to its main competitor based on product taste alone. They only way that switching cost cannot have a monetary penalty associated with it are if the competitor has the same type of rewards and products as one another. Switching brand loyalty...