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…………
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Bottled Water: Urbanization and Environmental Impact A Report by Mihir Garikiparithi The bottled water industry has grown rapidly and continuously since its inception. However‚ it has been a topic of concern ever since the negative effects of plastic were discovered in 1891. The necessity of bottled water‚ and the waste produced by the industry‚ has been questioned numerous times. One of the key factors that create a demand for bottled water is urbanization. The expansion of cities and industry
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Case Study 3 Nov 2009 Bottled Water Industry 1. What are the strategy-shaping business and economic characteristics of the bottled water industry? What is the industry like? The global bottled water industry forecast is growing by 30% through 2010 to reach approximately $82 billion in revenue. Bottled water is thought to be safer than municipal tap water and an alternative choice to high calorie carbonated beverages. Focus on fitness‚ health‚ and the go-go lifestyle has made the United States’
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the importance of regulating sales of bottled water in the country as volume and value sales of it increased as a result of consumers and households perceiving that it is of superior quality to that of tap water. In 2012‚ the Safe Bottled Water Act of 2012 was approved on final reading in the House of Representatives. The Act seeks to mandate that the Department of Health establish clear labelling requirements for bottled water including source and type of water‚ type of treatment‚ date of bottling
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Dimensions of Bottled Water Industry The bottled water industry enjoyed substantial growth in the last decade‚ especially in the United States. The popularity of bottled water increased dramatically since 1996‚ and different customers were able to be targeted. The different customer groups included those concerned about water safety‚ those primarily concerned about fitness‚ and those customers that drink bottled water primarily for the convenience of it. Customers either purchased bottled water in bulk
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Competition in the Bottled Water Industry 1. List and describe the dominant economic characteristics of the bottled water industry. Market size and growth rate The industry is size is worldwide with a growth rate averaging nearly 9% from 1996-2001 (with a U.S. per capita growth from 20 gallons per year in 2001 to 26 gallons per year in 2005.) Number of buyers There is a significant number of buyers in the U.S. and internationally. No one buyer accounts for a significant fraction of
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Bottled Water Industry Analysis & Recommendations I. Industry Introduction The Bottled Water industry is still in an expansionary/growth stage. In 2005 the bottled water industry accounted for $70 billion‚ and is expected to reach $140 billion by the year 2020.Advertising budgets are very heavy in companies such as Pepsi (Aquafina)‚ and are positive indicators of the current [growth] stage in the product’s lifecycle. However‚
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Large pool of buyers but no one accounts for a significant fraction of overall market demand. Degree of product differentiation Various types‚ such as natural mineral water‚ spring water and purified water etc. Products could be identical. Buyer needs and requirements Due to the concerns over the safety of tap water. An increased focus on health and fitness. The hectic on-the-go lifestyles of American consumers. Attracted by the convenience‚ purity and portability. Number of rivals
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DISTRIBUTION AND SALE OF BOTTLED WATER Bottled water was distributed to the large grocers and clubs directly by the producers whereas they use third parties like bear and wine distributors to make sales and deliveries to stores‚ restaurants & delis Coca-Cola and PepsiCo enjoyed the advantage of their vast distribution channels. It was easy for them to distribute Dasani and Aquafina with their deliveries of other beverage. They also negotiated contracts with sports stadium‚ universities‚ school
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The Bottled Water Bandwagon Being uninformed is a crime someone should never commit to our planet. Many people run through their daily routine without putting much thought into how their decisions are affecting our planet. Something as simple as drinking bottled water can cause families to lose their water supply‚ and environmental turmoil. When will people recognize the damage they’re doing to their environment‚ and when will the damage outweigh the convenience of bottled water? Yes‚ bottled
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