Business Intelligence in Coca-Cola: Role in Decision Making and Competitive Advantage

This report discusses the role of business intelligence in decision making and achieving competitive advantage in Coca-Cola. It explores the use of AI and data analytics in product innovation, personalization, and market evaluation. The report also includes a Porter's Five Forces analysis of Coca-Cola.

Business Intelligence Big
Data report

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Discuss the role of business intelligence play in selected organization to help in decision making
procedure................................................................................................................................................3
Discuss how to selected organisation can achieve competitive advantage using business intelligence..4
CONCLUSION...............................................................................................................................................7
REFERENCES................................................................................................................................................8

INTRODUCTION
Business intelligence (BI) is the act of collecting and analyzing data for use by businesses in
their planned and everyday decision-making operations, leveraging the combined ability of
citizens and technology. The business intelligence procedure includes storing firm information in
a data warehousing or other archive and analyzing the data with a properly built tool. A
corporation may, for instance, examine client internet buying behavior, operational expenditures,
or geographical retail sales. Other company can evaluate its commercial operations to industry
benchmarks. This report based on the Coca-Cola Company is an American global coffee
business based in Atlanta, Georgia and formed within Delaware's General Corporations Act. In
this report consist of use of business intelligence in the selected organisation and how to achieve
competitive advantage by BI&A.
MAIN BODY
Discuss the role of business intelligence play in selected organization to help in decision making
procedure
Businesses who want to increase their efficiency in generating fact-based choices
recognize the value of business intelligence. It identifies key relationships and correlations in
company data, providing a comprehensive picture of organizational operations, customer
behavior, and internal efficiency. This knowledge is critical for improving judgment and
effectiveness. Financial intelligence's goal is to boost a company's performance and
development. A contemporary business intelligence technology may assist firms in determining
what occurred, why it occurred, and what needed to be done in order to improve their processes.
Coca-Cola had a coup in 2010 when they used business intelligence for their sales figures
to achieve invest large sums of money cost reductions. The company was having trouble
combining information from 74 different bottler systems, all of which were different in terms of
capacities and analysis techniques and were scattered across the nation. Revenue numbers had to
be generated, total production had to be planned, and the distribution network had to be
streamlined. There has been no chance they could obtain this diverse data from multiple, place it
in an excel spreadsheet, and calculate the data required for future production planning with a
mechanical data input capacity.

Coca-Cola has a long history of utilizing BA, with productivity and income modeling and
forecasting that includes both the company and its manufacturing factory licensees becoming a
crucial aspect. Other area wherein BA was employed was in company planning and cost
assessment. The business made extensive use of dashboard monitors and statistics to indicate
what was happening in relation to income, volume, and promotion. Considering historical data,
the companies based a continuous 13-month prediction frame.
Users fighting modifications to business network which have been in existence for months
are known to many IT organizations and BI groups. It's understandable that once individuals
grow comfortable with programmes, they would not like to see them modified. However,
Honaman believes there are methods to make the implementation of a new BI and analytics
system go more smoothly.
Honaman, for instance, believes he should have enlisted the help of officials from the
operational, advertising, and marketing processes, who will be the result in improved of the new
BI system, from the start. The users were mostly unhappy with the appearance of the results and
the manner they had to engage with the platform. However, there are problems that may have
been addressed earlier. The IT staff just did not understand what the enterprise customers
desired. Furthermore, IT and BI executives should be confident to talk in plain English about the
advantages of an analysis point of view. When Honaman started chatting about computers and
disk storage with Coca-chief Cola's marketing executive and other employees of the marketing
division, they became distracted. The advertising agency became more involved once he
described in actual fact on how a single system would assist the organisation measure private
consumption, clickstream data, and successful social media involvement.
Discuss how to selected organisation can achieve competitive advantage using business
intelligence
It is practically impossible to survive in the twenty-first century without the need for some
sort of device. Various technical advancements have catapulted the profession to greater levels.
Artificial intelligence, the Wireless sensor Networks (IoT), Big Data, Machine Learning, Speech
Processing (NLP), and other tools have made things easier. This has also increased competitive

environment. So, in this blog, we'll look at the Coca-Cola Company's narrative and how they've
used technology to stay on top. We will address the importance of artificial intelligence and data
areas such As artificial intelligence in the development of Coca-Cola. To beginning, we'll go
through the company's business and some of its products.
Better placement and personalization: In regards to product innovation, Coca-Cola is employing
machine skills to develop brand features and customization. It is done by increased client
interaction with vending machines. Through tracking pedestrian traffic, inquiries, shopping
habits, and consumer information, vending machines advertise appropriate goods for that
location and give rewards tied to that specific aspect. Additionally, the device's'mood' is added
depending on its present location.
Healthy options: Although revenues of sugary, fizzy drink items have decreased over time,
Coca-Cola has used information to help create and market some of its healthy alternatives, such
as orange juice, which this distributes underneath a number of references around the world
(including Minute Maid and Simply Orange). To ensure that oranges plants are produced
effectively and continuously, the firm uses weather forecasts, satellites photographs, agricultural
production statistics, pricing factors, and acidic and taste evaluations. The computer then
discovers the optimal combination of characteristics to match items to local customer preferences
in the more than 200 countries where its products are offered.
Better placement in mortar and retail: Coca-Cola is also using machine intelligence to promote
itself effectively in brick-and-mortar stores. Originally, the company will conduct super market
assessments using a costly, moment, and employment technique that involved comparing its
items to competitors' and calculating how to lessen the amount of items that needed to be
replenished considerably. Coca-Cola used machine learning to collect photos of shops obtained
with a phone, which resulted in a threefold boost in business market evaluations. This could only
undertake two evaluations each year using the previous, time-consuming method. Researchers
could, though, execute six such questions using computer vision.
Porter’s five forces
Porter's five forces model is a strategic creation tool that aids in the evaluation of some
powerful factors affecting a company's level of rivalry. It is termed after this originator Michael

E Porter. This method has risen in importance over time and is now widely used during the
financial industry to assess the financial and attractiveness of a multitude of sectors. This
approach looks at the five components that each industry in the uk has. Based on studies of such
processes, management might adjust strategy in order to gain financial ratio. A Five Forces
analysis has been conducted on Coca-Cola. Coca-Cola the most well beverage brand in the
world, having a wide footprint. Pepsi is their sole big competition.
1. Bargaining power of suppliers: Coca-suppliers Cola's negotiation power is limited. This
is owing to the vast number of providers and Coca-low Cola's cost savings. Coca-Cola
can easily go from one firm to the next, but still no supplier can easily leave Coca-Cola.
As a consequence, several of the suppliers may experience losses. Regardless of the fact
that there really are numerous of suppliers, each one is small or medium-sized. Moreover,
upriver integration represents a pipe dream for all of its suppliers. When there are no
substitutes for fundamental products including such sugar, despite the fact that there are
several suppliers.
2. Bargaining power of customers: Different consumers have minimal negotiation leverage
with Coca-Cola. Individuals customers purchase in little amounts and are not dominated
in either one marketplace. Pepsi and Coca-Cola, on the other hand, are nearly identical.
Companies mainly promote preferences that are similar. Consumers have minimal
transaction cost, and both companies have high brand equity. Coca-Cola consumers aren't
price conscious. Consolidation is not available to customers, whether they are individuals
or big stores. The only reason a retailer acquires negotiation strength since it buys in large
numbers. Customers' bargaining power, however, is restricted.
3. Threat of new entrants: A number of challenges discourage new businesses from entering
the beverage industry. It's difficult to establish a brand rapidly. There'll be a significant
amount of money spent. Through administrative to promotion, every area of the firm
needs a large expenditure. Despite the fact that some local businesses start modest,
promoting and hiring qualified personnel requires a large expenditure. Consumer loyalty
in the industry is moderate, and building a strong brand loyalty takes time for every
organisation. As a consequence, although new rivals may be able to compete with Coca-
Cola on a municipal and provincial level, building a huge brand demands both funds and
resources.

4. Threat of substitutes: There are several substitutes for Coca-Cola products. Coca-Cola
substitutes include Pepsi beverages, fizzy drinks, fizzy drinks, and a variety of bottled
sodas. Liquids and other drinks, as well as fizzy drinks, are available on the global
market. The costs of switching clients are modest. Apart from that, the functionality of
the substitute options is usually satisfactory. Alternatives offer a high risk as a result of
this situation.
5. Competitive rivalry: In the drinks industry, Coca-Cola and Pepsi are the two most
dominant firms. There is a tight battle here is between largest players. There are a few
smaller companies, but they do not provide a substantial danger of competitiveness. The
two major people are nearly the same size and have the same commodities and
procedures. There is indeed a lot of cost leadership since there isn't much of a difference
between the two firms. These corporations invest much in advertisements. Coca-Cola
feuds are well-documented. As a consequence, the level of competition among
established firms is a significant element. Besides from Pepsi, Coca-Cola has a few other
competitors, the most notable of which being Red Bull.
CONCLUSION
Companies may use business intelligence to continuously evaluate data and generate
valuable intelligence that influences short- and long-term performance. In practically every
aspect of the business, including marketing, customer care, manufacturing, security, and more,
analysed data can reveal crucial patterns and trends. Organizations utilize data analytics to
inform all of their choices can swiftly adjust to the shifting corporate world. Business
intelligence aids in the development of introducing new products, the identification of new
consumers via focused marketing strategies, and the optimization of marketing channels.

REFERENCES
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Online
BI use in Coca Cola, 2021. [Online]. Available through;
<https://www.techtarget.com/searchbusinessanalytics/tip/Coca-Cola-overcomes-challenges-to-
seize-BI-opportunities>
<https://www.entrepreneur.com/article/398669#:~:text=In%202010%2C%20Coca%2DCola
%20had,and%20spread%20across%20the%20country.>