Business Strategy 499 '10

Nuro sweet is a great example of how Coke built a new supplier (HSC) to get the most favorable rates. Correct me if I am wrong this whole game of changing the players has some relevance with a simple concept of economics “don’t put all your eggs in one bucket”. If you have only one supplier you will be worse off cause he will have immense bargaining power and will be in a position to charge you at whatever rate he likes. For instance Packages was dependent on Century paper a single supplier for high quality paper. In that case he has a sort of monopoly and if you can create a new supplier or integrate backward do it to break the monopoly. Same is done by Packages it has integrated backward it makes high quality paper at its Kasur Plant.