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1. Value chain

The value chain breaks the firm into nine value creating activities in an effort to understand the behavior of costs in the specific business and the potential sources of competitive differentiation. The value chain includes five primary activities and four support activities.

Five primary activities that Coca Cola uses to add value to the customers.

1. Inbound logistics; The inbound logistics that Coca Cola uses are the ingredients that are used to make the secret recipe. The recipe is all over the world the same, this means there is strict development process in every country. The main ingredients of Coca Cola are coca leaves water and sugar. There are many more building materials used in the soda, but this remains still a secret. The coca leaves are coming out of South – America. They get a certain ingredient out of it, and this is sent all over the world. Coca Cola has factory’s in more then 250 country’s. Then the water, this is also very important that it gets fabricated in the same way whether it is in Holland or in Mexico.
2. Operations; The way Coca Cola turns their materials in an actual product is still unknown, there are many competitors that are trying to copy the secret recipe but no one has ever come with the same taste. The end product is made in two different factories. The Coca Cola Company fabricates the treacle ( soda ) and sells it to the Coca Cola Enterprises, they are responsible for the production, distribution and sales.
3. Outbound logistics; Coca Cola has one of the best and most efficient outbound logistics. The end product is made in it’s own country factory’s. The end product gets stored and is delivered to all it’s clients. These clients are very various. The product gets send to big retailers but also to small companies.
4. Marketing and sales; The thing that Coca Cola does the best is marketing it’s product and brand. With all their slogans and...