ABL LTD

Topics: Coffee, Snack food, Drink Pages: 4 (872 words) Published: April 23, 2014
1a Identify the industry, product segments and value chain.
The industry is the non-alcoholic beverages indsutry
-> Their core activities are producing a diverse range of non-alcoholic beverages from carbonated soft drinks (CSD), milk drinks, fruit drinks, sports drinks, ready-to-drink tea/coffee and energy

drink as well as snack food products.
Product segments: carbonated soft drinks (CSD), milk drinks, fruit drinks, sports drinks, ready-to-drink tea/coffee and energy, snack foods
Value chain:

1b What is the current life cycle position of the industry (bottled water)?
The industry is in growth stage of its life cycle.
- This is demonstrated by the increasing in per capita connsumption of bottled water. In 2013, Australian consumed 33.1 litres of bottled watre per capita. But this consumption is still significant

lower than the consumption of the top 10 global bottled water consuming countries & other similar markets (US, Italy, France..). This suggests that the Australian market has potential for higher

rate of consumptions and sales growth.
- Its strong growth rate also be shown clearly through its fastest growing rate in the non-alcoholic beverage industry. Table 1 shows that it has significantly increased its market share over the

past 10 years in non-alcoholic beverages, and is predicted to have further strong growth (to reach 19% in 2018)
- Industry rivalry is low, particulary as the major competitors are focuse on supplying through different distribution channels. They have tended to dominate
one or two distribution channels only, rather than all channels to advoid strong head-to-head competition,
=> Up to date, the industry is in the growth stage.
However, it shld be noted that in the future it is expected to change as consumption growth of bottled water begins to slow. Just several new competitors have...
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