Competition In The Bottled Water Industry Complete Analysis

2196 words - 9 pages

Case #1Competition in the Bottled Water IndustrySubmitted to:Mr. Ahsan DurraniSubmitted by:Geeta Khiani 2723TABLE OF CONTENTS:INTRODUCTIONANALYSISGENERAL ENVIRONMENTAL FACTORS (P.E.S.T)INDUSTRY'S DOMNINANT TRAITSATTRACTIVENESS OF THE INDUSTRY(BASED ON PORTERS 5 FORCES MODEL)STRATEGIC GROUPS IN THE INDUSTRYINDUSTRY DYNAMICSDRIVERS OF CHANGE IN THE INDUSTRYKEY SUCCES FACTORSCOMPETITVE PROFILE MATRIXCONCLUSIONS AND RECCOMENDATIONSIntroduction:This case study discusses bottled water industry of U.S. It discussed about the global sales of bottled water industry in 2001 and annual growth average between 1996 and 2001. The growing popularity of bottled water industry in the United States was attributable to concerns over the safety of municipal drinking water, an increased focus on fitness and health and the hectic on-the-go lifestyles of American consumers. The factors like convenience purity and portability of bottled water provide natural solution to consumer's dissatisfaction over the tap water. There was an increase in industry volume and dollar sales as a result for the introduction of PET containers which satisfied the needs of convenience, portability and finally purity which would make the bottled water industry very attractive. An increased emphasis on healthy lifestyles and improved consumer awareness of the need for proper hydration led many consumers to shift traditional beverage preferences toward bottled water. Bottled water industry nature of competition was fierce competitive rivalry and it was dominated by a few international food and beverages producers like Coca-Cola, PepsiCo, Nestle and Groupe Danone. Per capita consumption in 2002 fell substantively below consumption rates in Western Europe, Middle East, and Mexico. Also the per capita consumption in United States was also lagged by a wide margin of soft drinks. There are top 5 leaders of bottled water brands of 2001 which consists of PepsiCo, Coca-Cola, Nestle Waters, Groupe Danone and final Crystal Geyser. The top leader in brand is Aquafina by PepsiCo which has a market share of 10% as compared to other competitors. The top 9 companies who are considered the leading U.S. Bottled Water Producers of 2001 was Nestle Waters with a market share of 32.5%.General Environmental FactorsPolitical and Legal Factors:1. Environmental Protection Agency (EPA) and Food and Drug Administration (FDA)Bottled water produced in United States was required to meet the standards of both the EPA and U.S. Food and Drug Administration.Present ImpactCompanies are producing bottled water according to the standard of EPA and FDA.Future impactIn future the sale of bottled water will increase because of meeting the standards..2. Inspection by state agenciesBottled water also regulated by state agencies that conducted inspections of bottling facilities and certification of testing facilities to ensure that water is save to drink.Present ImpactCompanies are inspected by State agencies.Future impactPeople will...

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