Research and Describe the Coca-Cola Company Business Model (Essay Sample)

COCA-COLA BUSINESS MODEL
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Introduction
Introduction
According to Osterwalder & Pigneur, (2010), “business model refers to an abstract representation of an organization which can either conceptual, textual or graphical of the organization’s interrelated architecture, operational as well as financial management.” On the other hand, according to Osterwalder & Pigneur, (2010) “business models canvas refers to a strategic management as well as lean startup template that is used to develop new or carry out documentation of the existing business models”. It is also know to be a visual chart containing elements describing product value of any company, its infrastructure, customers as well as finances. Business models assist companies to align their operational activities by carrying out illustration of potential trade-offs
According to CNBC (2013), “Coca-Cola Company was formed about 130 years back in 1886 by pharmacist John Pemberton in Columbus Georgia United States.” The company has its headquarters in Atlanta Georgia and it’s the leading American Multinational beverage corporation as well as a manufacturer, retailer and marketer of nonalcoholic beverage concentrates as well as syrups. The company has been operating franchised distribution system since the year 1989 while the Coca-Cola Company only focuses on production of syrup concentrate which is sold to other bottlers throughout the world who then hold exclusive territories. The company sells beverage products to approximately 200 countries. The company operates market share or 43% in the united states, 37% in Mexico, china, Japan, brazil, Pakistan and India and 20% market share in the rest of the world (Esterl, 2014).. The company was rated the best selling soft drink globally and it was recognized as the number one global brand in the year 2010. For instance, the company reports its activities in two main business segments that sell sparkling as well as still beverages through six main operating segment and these segments include; North America segment, Asia pacific segment, Latin America segment, Europe, Eurasia and Africa and finally bottling investment segment.
Business components1. Partnership2. Customer relationship3. Distribution channelCoca-Cola business components
Coca-Cola company has the following components in its operation strategy and this include; partnership; despite the fact that the company has sufficient resources and assets that can enable it carry its operation independently, it engages into partnership with other firms and these include; Sabco bottler which help to increase the bottling capacity for Coca-Cola by ensuring that the company sells both quality and quantity or volumes (Forbes, 2014). Another partner is manual distribution centers and these are privately owned chained that assist in distribution of Coca-Cola products to very interior areas to facilitate customer accessibility.
The other component is customer relationships and this component is executed in the following ways; the company provides displays and fridges to both retailers and wholesaler which are used to increase product visibility. The company also carries out massive advertisement to consumers which ensure effective dissemination of product knowledge to customer hence increasing uptake. The company implements resident account developer that helps to manager stock and movement of company products effectively.
The other component is the channel and it entails two section that include; large scale distribution like regional product distribution either beyond country borders or within the country but between cities or towns. The other section is manual distribution centers that are privately owned and they distribute the products to local consumers within a town or residential area.
4. Customer segment5. Small shopsKey resources and activitiesConclusion The other component within the business model is the customer segment and it entails the following; large retail outlets such as shopping mall, supermarkets and restaurants that stock the products in large retail quantity considering the large number of customers visiting such chains to purchase the products on retail basis. The other one is small shops that stock the products in small quantity and they get their supply from manual distribution centers. Finally, under cost structure segment, the company has key activities that incl...