Competition in the Bottled Water Industry - complete analysis

Essay by GeetaUniversity, Master'sB, September 2007

download word file, 10 pages 3.4

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Case #1

Competition in the Bottled Water Industry

Submitted to:

Mr. Ahsan Durrani

Submitted by:

Geeta Khiani 2723

TABLE OF CONTENTS:

INTRODUCTION

ANALYSIS

GENERAL ENVIRONMENTAL FACTORS (P.E.S.T)

INDUSTRY'S DOMNINANT TRAITS

ATTRACTIVENESS OF THE INDUSTRY

(BASED ON PORTERS 5 FORCES MODEL)

STRATEGIC GROUPS IN THE INDUSTRY

INDUSTRY DYNAMICS

DRIVERS OF CHANGE IN THE INDUSTRY

KEY SUCCES FACTORS

COMPETITVE PROFILE MATRIX

CONCLUSIONS AND RECCOMENDATIONS

Introduction:

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...