STRATEGIC ANALYSIS OF BISLERI|
SUBMITTED BYAnkit sharma|
The bottled water industry in India is currently valued at more than $ 1.5 billion. The bottled water industry is growing at rate of 18% CAGR and has attracted many players including Pepsi and Coca Cola. The pioneer of the industry Parle Bisleri has grown over the years and maintained its top position. The bottled water industry consists of organized and unorganized players. There are about 2000 unorganized players which operate locally. The industry is dynamic and the companies operates in hypercompetitive environment. The strategic analysis of company like Parle Bisleri becomes very important in this situation. In the present report we have done strategic analysis of Parle Bisleri. We have used different models for analysis purpose. We tried to analyze the different strategies adopted over the years, the strategy development and have evaluated those strategies considering the external environment and core competencies. We have found that the company has gained sustainable competitive advantage through its brand, logistics and marketing. The company however faces threat from its competitors as it is single product company. The company has adopted expansion strategy to increase the reach and achieve operational efficiencies. We have made certain recommendation based on this analysis. We recommend that the company should strengthen its distribution network, form alliances and joint venture, acquire small players and adopt related diversification.
MARKET SIZE & SHARE6
EXTENDED VALUE CHAIN ANALYSIS9
CORPORATE LEVEL STRATEGY13
CURRENT BUSINESS STRATEGY15
Year 1969 to 2000:16
Year 2001 to 2010:16
STRATEGIC DEVELOPMENT AT BISLERI18
EVALUATION OF STRATEGY ADOPTED23
The global bottled water industry consists of selling of flavored as well as unflavored water. With regards to Indian context there is sale of only unflavored water. The bottled water segment is rapidly growing which has a total market size of more than $ 1.5 billion. The market is mainly controlled by the organized sector with over 500 brands existing in the market. A growth in the sector has been viewed mainly because of the health conscious people, improper water supply and the unpredictable municipal water supply. With a high growth rate and low entry barriers has attracted many players in this segment. The market operates in lower margins, the price increases when the cost of packaging and transportation increases the major players in the market are trying to establish themselves in bulk water business through brand equity, whereas the unorganized players are resisting them by using differentiation strategy. Parle acquired Bisleri from an Italian entrepreneur Mr. Felice Bisleri in 1967. The company established its first plant in Mumbai in the same year. The company was the first player in the bottled water industry and so it has gained first mover advantage. The company has undergone changes over the years. There was a strategic shift in the direction of the company over the years. We have selected Parle Bisleri for the analysis purpose mainly because, it is important to study how a company with a single product brand has maintained its market position? We have gained insights about the strategic decisions taken by the company over the years, which have enabled it to gain sustainable competitive advantage. PESTLE Analysis
There are various factors affecting the Indian bottled water industry, the government policies regarding...