Bottled Water Industry

Only available on StudyMode
  • Download(s) : 241
  • Published : April 23, 2010
Open Document
Text Preview
Running Head: Competition in the bottled water industry in 2006.

The intent of this paper is to provide possible course of action according to analysis made for this case.

Table of Contents
Title Page
Table of contents……………………………………………….…………………………2 Executive summary….………………………………………………..…………………..3 Macro-Environmental Analysis…...…..…………………….……………….……………3 Industry and competitive analysis...………………………………….……………………6

Economic traits of the industry..……………………………….………………….6
Five forces analysis…………....……………………………….………………….6
Strategic group mapping……....……………………………….………………….6
Key Competitor’s analysis….....……………………………….………………….6
Key success factors……...….....……………………………….………………….6
Is this industry attractive or unattractive?..…………………….………………….6 Company situation analysis..………………………………………………......………...13

EXECUTIVE SUMMARY
The present Case Analysis is the result of the rapid growth of the bottled water Industry in the last decade. Many authors and analysts believe that this Industry has become a very important part of the economy, therefore the importance of the analysis of the sector, its competitors and its strategies. With global revenues exceeding $62 billion in 2005, bottled water was among the world´s most attractive beverages categories (Gamble, John E. – Thompson Jr., Arthur A., 2007, p.254) and an expected growth of 30 percent between 2005 and 2010; the companies in the sector have noticed the importance of good strategies to compete not only in local but in global markets. History and statistics show us that strategies and the products by themselves can make the difference between success and failure. This Case Analysis provides coverage of essential data that allow us to see the evolution of the Bottled Water Industry, its competitors, markets, forecasts, strategies and possible alternative courses of action. We also analyze the situation and performance of Coca-Cola as a key competitor in the Industry. And finally we present some recommendations that companies in the sector can use to have competitive advantages in front their competitors. MACRO ENVIRONMENTAL ANALYSIS

Technology
Almost 50% of bottled water consumed in US in 1990 was delivered in returnable five-gallon containers and dispensed through coolers, called HOD due to home and office delivery. At that time, only 186 million gallons of water were sold in one-liter or smaller single-serving polyethylene terephthalate (PET) bottles. In 2005 there were high-density polyethilene (HDPE) containers for 1-2.4 gallons. (Gamble, John E. – Thompson Jr., Arthur A., 2007, p.257)

Technology needed in this industry is not cutting edge technology, so it is considered as medium technology since quality controls must be pretty high due to health problems might appear and sink a company.

Legislation & Regulations
Bottled water producers in the United States were required to meet the standards of both the Environmental Protection Agency (EPA) and the Food and Drug Administration (FDA). Like some other food and beverage products sold in US, bottled water was subject to such food safety and labeling requirements as nutritional labeling provisions and general good manufacturing practices (GMPs). Bottled water GMPs were mandated under the 1962 Kefauver-Harris Drug Amendments to the Federal Food, Drug and Cosmetic Act of 1938 and established specifications for plant construction and design, sanitation, equipment design and construction, production and process controls, and record keeping. Bottled water producers could also voluntarily become members of the International Water Association (IBWA) and agree to comply with its model code, which went beyond the standards of the EPA, FDA, or state agencies (Gamble, John E. – Thompson Jr., Arthur A., 2007, p.258)

Societal values & Lifestyles
Convenience and portability were two of a variety reasons US consumers were increasingly attracted to bottled water. A heightened emphasis on healthy...
tracking img