Topics: Bottled water, Coca-Cola, Soft drink Pages: 4 (1161 words) Published: December 14, 2012
External analysis
The bottled water market is the most vibrant segment on the drink market with a market share about 38% (report by Global Industry Analysts Inc.). The market is dominated by four international companies: Nestlé, Danone, Coca-cola and Pepsi. The USA represents the first buyer country of bottle of water but West Europe and Asia Pacific are the two more important sales’ places with a continuous growth for Asia Pacific. Actually, we can observe that emerging countries want to access more and more the bottled water products. Porter’s 5 forces is one of the most important framework in strategic analysis which permits to analyze an industry and corporate a strategic development. Thanks to this analyze, we can observe that the industry market has a really high competitive rivalry with four strong international companies and many local and popular brands.  

Porter five forces:

The market is growing in emerging countries, especially in Middle-East and Asia so more and more companies try to enter on it. This market is a great opportunity for bottled water companies because these consumers have a high power of buying and they do not really care about the increase spending of food. Many companies expected to growth their sales thanks to the increase of consumers’ healthy conscience. Actually, even some government tries to sensitive their citizen about their health which is really helpful for bottled water industry. Moreover, in many countries drink bottle of water is not a luxury but a necessity if they do not want to drink water unsuitable for drinking. The bottled water industry is expected to witness greater participation from soft drink and dairy processing companies, fostered by economies offered by existing international distribution network, and processing equipment. According to the report published by the Global Industry Analysts Inc., the sales should continue to increase because water is a healthy alternative to carbonated soft drinks. In...
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