IntroductionCoca Cola markets nearly 2,400 beverages in over 200 geographic locations. Consequently, developing a superior value system is central to their activities. In this article we will analyze their value system using Michael Porter's value chain analysis model. In an effort to paint a current picture of the soft drinks industry, we will evaluate market activity using mergers, acquisitions, and IPOs as benchmarks to determine whether the market is growing or contracting. Value Chain AnalysisA value chain is a model used to disaggregate a company into its strategically relevant value-generating activities, in order to evaluate the contribution of each activity to the company's performance (Termini V 2006). Through the analysis of this model we can gain insights into how a company creates its competitive advantage and shareholder value. The value chain of the soft drinks industry contains five main activities. These include inbound logistics (suppliers), operations, outbound logistics (buyers/customers), marketing and sales, and services. Inbound Logistics (Suppliers) Some of Coca Cola's most notable suppliers include Spherion, Jones Lang LaSalle, IBM, Ogilvy and Mather, IMI Cornelius, and Prudential. These companies supply Coca Cola with materials such as ingredients, packaging, and machinery. To ensure that these materials are in satisfactory condition, Coca-cola has put in place certain standards that these suppliers must adhere to (Supplier Guiding Principles). These include: compliance with laws and standards, laws and regulations, freedom of association and collective bargaining, forced and child labor, labor abuse, discrimination, wages and b...... middle of paper ......com /gst/fullpage.html?res=980CEEDC123AF932A25751C0A9629C8B63Symbol Technologies, Inc. (2003) Coca Cola FEMSA to Launch SymbolRugged Laptops for Next-Generation R. Retrieved October 25, 2006, from, http://www.symbol.com/news/ pressreleases/press_releases_coca-cola_femsa.htmlSymbol Technologies, Inc. (2006) Coca Cola HBC improves sales productivity by 25% with Symbol solutions. Retrieved October 24, 2006, from http://www.scansource.com/symbol/files/CocaCola_CS.pdfReuters (2006) Beverages (Nonalcoholic): Milestones. Retrieved October 24, 2006, from http://www.investor.reuters.com/business/KeyDevelopmentsBusInd.aspx?industry=BEVNON&topiccodes=207&target=%2fbusiness%2fbussecindustry%2fbussecindfake%2fbusindmajerdevYahoo Finance (2006) IPOs by Industry. Retrieved October 25, 2006, from http://biz.yahoo.com/ipo/indg_m.html