Counting Beans

Coca Cola has maintained a competitive advantage by keeping costs low. Even though their rival Pepsi has higher sales volume, Coca Cola has been more profitable. Coca Cola brings economic value to the customer by bringing a quality product to the consumer at a competitive market price while bringing higher returns to their shareholders. Coca Cola has kept cost low by working with their supply chain to continually negotiate better prices and terms. They have focused on implementing technology into their bottling locations to produce with the highest efficiency available. Coca Cola operates by selling concentrates, beverage bases and syrups to bottling companies, which are responsible for manufacturing and distributing the final product to the consumer. Bottlers are either company owned, company controlled or independent bottlers. Using this business model has allowed Coca Cola to create an excellent distribution network that is efficient and flexible while maintaining a cost advantage over their competition.