Business Intelligence - Essay Example

Topics on Business Name Institution Instructor Subject Date Case 7 Coca-Cola Company recently realized that they did not provide enough drink choices to satisfy their customers. Therefore, to solve the problem, the company successfully invented an automated self-serve dispenser also known as Freestyle. The dispenser is designed in such a way that it takes the customer’s choice concept in its mode of operation (Bidgoli, 2012). Freestyle has therefore become Coke’s application of business intelligence since the system collects large amount of data about the customers’ preference, and then sends the data to the Coca-Cola company headquarters in Atlanta. The introduction of drink-dispensers has made it easier to have new concepts of beverages flavors more accessible to the customers. These flavors include adding some different types of vitamins to juice and flavored water. The dispensers mix hundreds of drink blends using 30 installed flavoring cartridges. These cartridges are attached with radio frequency identification chips, whereby each dispenser is installed with Radio-frequency identification (RFID) reader. These digital components transmit information every night over a wireless network to the company’s main data warehouse system (Bidgoli, 2012). The data is hence used by the company to generate reports that guide the marketing team on various regions to supply specific variety. This is because the reports shows fast-food outlets and market taste popularity in different regions of the United States. Due to increasing rate of technological advancement and increase in competition from other beverage companies, there was need for Coca-Cola to develop a brand strategy to maintain its customer share in the market. The main reason for brand development strategy is to maintain the image of its brand in the constantly changing market (Speshock, 2010). Market research done by the company indicates that the Coca Cola adapted a strategy that makes it difficult for other companies to interfere with the market of their product. This is because the brand loyalty offers security and predictability of the product demand in the market. Coca-Cola Company has succeeded in several challenges of enhancing its brand image. In this way, it has managed to win itself more customers through thorough monitoring and careful consideration of customer feedback. Coca-Cola’s implementation of strategic business intelligence initiatives has led to collection of essential and consistent information concerning Coca-Cola from all parts of the world. This information enabled the company to compare the suggestions to the solutions based on accounts, locations and brands. The method of analysis is more reliable because it integrates financial information along with business intelligence. Furthermore, it compares information from different products and also from one part of the world to the other. The recorded data is crucial in answering the questions concerning the continuity of the business and help in improving its competitive capacity (Speshock, 2010). The recent Coca-Cola brand development through application of strategic business intelligence initiative is evidenced by the introduction of Coca Cola Zero in the market. This is shown by its uniqueness in its advertisement which gave it a favor by consumers over the other brands (Speshock, 2010). Though the brand is believed to carry the original Coke flavor, experts think that since several brands have developed from the original Coke flavor, then the original flavor has been lost. Therefore, to prevent loss of customers in the time when several non-alcoholic beverage companies are rising and competing for the same customers, Coca Cola implemented business intelligence initiative for its success. To maneuver successfully in the in the ever changing market conditions, Coca Cola’s brand marketing team are smart enough to change the product prices depending on the seasons. During winter, they lower the product prices and increase during summer when he demand is high. This has helped the company to maintain the profits and sales in in all seasons and places (Bidgoli, 2012). As part of the of business intelligence strategy, Coca Cola has developed various new and smart tactics of promotions for its brands so as to maintain its position in the market. Among numerous efforts used by the marketing team, they have obtained large shelves for its departmental stores. These shelves are designed in such a way that it displays the product more clearly and in a more attractive way for the customer. The strategy also boosts it sales as their consumers find easy access to the brand of their choice (Nina, Kevin & Ashley, 2008). They also get gets fast hand information regarding the existence of a new product from the company. The data obtained by the company though the Radio-frequency identification (RFID) is used in planning of the firm’s core operational activities (Nina, Kevin & Ashley, 2008). These activities include stoppage of distribution of a reticular product brand to a specific cartridge and automatic scheduling of specific cartridge refills. Moreover, the new technology analytic techniques help the company to understand the market demands and find ways of making a better improvement on the test marketing process. The information obtained can also be easily shared globally through their distribution channels. It is therefore increases the market superiority of the company over their competitors since the information gives the company a better prediction of the future trends and possible changes so that they find for solution early enough (Bidgoli, 2012). The effect of globalization is driving business to a new level. Currently, big businesses are operating in an international system. Coca Cola is among these big firms that are struggling to stabilize in the international market. Advancement in technology is continually changing how the businesses operate. The continuous change in technology has transformed these businesses enabling them to be more feasible and profitable in their global performance of their operations. The main objective of application of business intelligence in global business operations of Coca Cola is to enable the company serve all different forms of varied markets across the world. The company is also taking advantage the possible opportunity of attaining large revenues which is possible by its participation in global businesses. It has succeeded in a way since they have established the global market and now the product brand is offered in more than 200 countries across the world. Following the increased variety of brands provided to its customers worldwide, the Freestyle drink dispensers have incredibly increased the company’s revenue growth. The machine has helped the Coca Cola Company to customize the product based on the region of high popularity. Through the high speed data recording and transmission, there is a swift modification of the brand variety in accordance with the customer preference (Speshock, 2010). When the marketing team realizes that some flavors don’t sell well in some parts, then they opt to bottle them in order to provide space for the more desired brand giving a reasonable guarantee that the investment pays off. In conclusion, the success of Coca Cola Company in the recent past has been greatly contributed by incorporation of business intelligence strategy in its operations. However, despite the company’s good performance in gaining customers’ trust and obtaining new customers continuously all over the world, it should proceed on updating its business tactics and adapting new technology as it grows. It should also upsurge the wealth of its shareholders by developing better sales and marketing strategies that decreasing its costs as it increases the sales volumes. In doing so, the profits will be drastically increased. The availability of up-to-date information regarding the market activities in any organization is very essential since it helps in in its future planning. Coca-Cola took the advantage of the data provided by the drink-dispensers in order to make future plans and make them outdo their competitors in the market (Nina, Kevin & Ashley, 2008). This step therefore formed the foundation of using appropriate dynamic business intelligence strategy. These business-strategy model simulation and analysis help the beverage in identifying the influence of potential actions on the balance sheets, overall corporate strategy and profit and loss statement. References Nina, Y., Kevin, C. D., & Ashley, B. (March 01, 2008). Complexities of Large-Scale Technology Project Failure: A Forensic Analysis of the Seattle Popular Monorail Authority. Public Performance & Management Review, 31, 3, 443-478. Bidgoli, H. (2012). MIS2. Boston, MA: Course Technology Cengage Learning. Speshock, C. H. (2010). Empowering green initiatives with IT: A strategy and implementation guide. Hoboken, N.J: Wiley. Read More