ECO 570 Assignment 1_BRYSON_VICTOR

ECO 570 Assignment 1_BRYSON_VICTOR - innovation Coca Cola...

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Victor Bryson ECO 570 Assignment 1 April 10, 2010 Coca Cola is a company that over its 100 plus years in business has always been a trend setter. Innovation and operation efficiency are two of the keys factors of the success of Coca Cola. While other companies are barely staying afloat, Coca Cola is still recording healthy profit margins. In order to survive in this current economy other businesses should follow the examples that Coca Cola has established. The primary reason for Coca Cola’s success can be attributed to its focus on product innovation. From the inception of Coca Coca’s product it was invigorating the beverage brand. At the time people had a preference for hot beverages which is in total opposition of the beverage market today. Coca Cola took a risk and with that risk has become a first mover to the market. First Movers have tremendous startup costs by since no competition is cutting into profit margins they can experience excellent economies of scale. With the constant focus on product
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Unformatted text preview: innovation Coca Cola ensured it success. Also of great importance is the success of Coca Cola is the operational efficiency that the company has maintained. Coca Cola reduced its costs greatly but not directly owning the bottling companies that are used to bottle its product. In addition to this managed relationship the company has ties to restaurant chains, sporting events, and other recitation events. The business has ensured that that from product creation to the ultimate retail destination all steps are performed with the highest operational efficiency. In conclusion, I agree that Coca Cola is the perfect company to imitate for a business model. The company has taken great care with its product and can be seen by the appreciation of its customers. The longevity that the company has achieved speaks volumes for its business model. If one company could describe success it would have to be Coca Cola....
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