Standardizations are extremely important in Supply Chain Management (SCM), especially with an Organization as big as Coca-Cola. Coca-Cola is consistently having a vast flow of goods from one destination to others. They also consist of many trading partners, from materials to the finished products. SCM is important due to the relationships built between each party. I believe that Coca-Cola does charge the bottlers for the new software. The new software being used would be an upgrade and help the company work more efficiently. Most companies are eager to upgrade their software, it’s always about which one and when. With the bottlers upgrading at minimal cost, this helps Coca-Cola to get majority of the bottlers using the same software, which makes collaboration easier.
My Coke Rewards is a definite example of a switching cost. One main reason is that it involves competition, such as Pepsi. And it also involves costs incurred in changing suppliers. Such money involves the prizes that are won after submitting a certain amount of codes, and lots of advertising to entice consumers. A switching cost might not have a monetary penalty associated with it if there was no initial payment in the beginning or no contract. For example, phone companies have a high cancellation fee to keep their customers, but this is all signed in a contract at the beginning.
The information that could be gathered from the My Coke Rewards website would be how many people buy what certain product. The numbers wouldn’t be exact but give them an idea. For example, if Dasani water was used for My Coke Rewards and I buy them but log in the codes for the water, Coca-Cola is calculating my usage for that product. With having a better idea on how popular a product is through My Coke Rewards, this would help CRM increase their activities with customers by using the most popular products.
While visiting Coca-Cola’s Facebook page I noticed there was over 50 million...