Value Chain in Hccb

Value Chain – The Coca Cola Company

Value chain for a company is defined at Business unit level, where the raw materials/ inputs pass through the series of business processes which transform them into finished goods by attaining certain value at the end of each process. These series of business processes are called as Value creation processes and the value of the product at the end of each value creation process is higher than the cumulative sum of the value in the previous stages.

A system of these activities, value creation processes, can be tweaked to attain more value at each stage, thereby increasing the willingness to pay from the customer point of view and also giving the business a differentiation from the competition resulting in a Competitive advantage over rivals. For any company the value chain starts with the supplier and end with the customer.

Similar is the case with The Coca Cola Company, which starts with procuring a high quality product from its suppliers. This gets transformed to high quality beverages through is value chain and gets delivered to its customers. There are intangible elements of coke such as brand value, management, technology, marketing and the relationships which add more value (may be perceived value) to the customer than the tangible physical product/ process itself. For Coke, this value chain drives the increased profit, growing ability to invest in research and development, marketing, entering new markets, etc.

The coca cola company is in the soft drinks/ beverages industry, which is primarily divided into two segments namely – production of soft drink syrup and manufacturing/ distribution of drinks at the retail level. Coke has set its eyes primarily on production of high quality syrup and marketing the brand. It relies on bottling companies for distribution to retail outlets. High quality standards are maintained for production of syrup which is then shipped to the bottling companies for...