Coca-Cola: Life-Cycle Model of Evolving Strategic Alliance Strategy

This second graph shows the rapidly escalating number of international bottling partners Coca-Cola had franchising alliance deals with. By 1920, the company had more than 1,000 bottling partners worldwide. Data in this area is sparse, though a recent figure reported by the company indicates the company presently has roughly 300 total bottling partners worldwide. Clearly, as the company grew, so did its number of suppliers and bottlers. Staring down inefficiencies in dealing with so many parties, the company encouraged consolidation amongst bottling partners, and offered partners financing and other incentives to move the process along. The bulk of Coca-Cola’s bottling partner consolidation occurred in the 1970s and early 1980s.

When it comes to Coca-Cola’s customers, as the world’s population has boomed, so too has the demand for soft drinks. The company presently serves 1.7 billion beverages per day worldwide, and its volume of customers continues to grow as emerging economies mature. The customer base has always been individual people in each country, but the means of selling to them has changed over time. Coca-Cola Classic was sold starting in 1886 out of a fountain for only 5 cents per glass. In 1900 the beverage began to be sold in bottles when Coca-Cola began partnering with bottlers. The first bottling deal was in 1899, when the company sold bottling rights for the entire United States to a small group of investors for just $1. As bottled Coke products became more popular, so did the company’s brand. Today, the company credits its strong bottling infrastructure for the success of its brand.

Coca-Cola’s suppliers, alternatively, are not so easy to track down. The company generally keeps the names of its raw materials suppliers confidential, as doing so reduces outside interference that might interrupt the company’s supply chain. It is clear that the number of materials suppliers has vastly increased over the years that Coca-Cola has become a major international brand. The company lists its primary providers of sweeteners in its Form 10-K, and these have been identified on the Alliance Constellation Map.

Other posts on Coca-Cola's brand and strategy:

Coca-Cola: Company Strategic Alliance Objectives with Suppliers
Coca-Cola: Company Strategic Alliance Objectives with Bottlers
Coca-Cola: Company Strategic Alliance Objectives with Brands
Coca-Cola: Life-Cycle Model of Evolving Strategic Alliance Strategy Early Days
Coca-Cola: Current Strategic Alliances – Major Strengths
Coca-Cola: Life-Cycle Model of Evolving Strategic Alliance Strategy
Coca-Cola: Current Strategic Alliances – Major Weaknesses
Coca Cola: Future Strategic Alliance Objectives and Strategy Overview Recommendations
Works Cited Page for Coca-Cola Analysis of Alliances Portfolio

"Coca-Cola - Our Company - The Coca-Cola System - History of Bottling." Coca-Cola: The Coca-Cola Company. Web. 28 Mar. 2011. http://www.thecoca-colacompany.com/ourcompany/historybottling.html.