Bottled Water Competitive Analysis
Competitive Analysis
The four major players in the bottled water industry include PepsiCo, Inc., Nestle, and The Coca-Cola Company. In 1987, PepsiCo Inc. attempted to enter the bottled water market but was unsuccessful until 1997 when they introduced Aquafina. In 1992, Nestle Waters acquired Perrier and became the world’s largest seller of bottled water. The last major competitor in the bottled water industry is The Coca-Cola Company. The Coca-Cola Company did not enter the market until 1999 with Dasani. In 2006 Nestle held the largest U.S. market share at 30.5%. Leading in second was PepsiCo, Inc. with 13.8% market share. Lastly, The Coca-Cola Company held 11.9% of total U.S. market share (“United States - Bottled Water”).
Buyer Power:
…show more content…
Entry Barriers: Low to Moderate
• Since brand names are highly important in this industry it would be difficult to convince major retailers for shelf space.
• New entrants may find it difficult to compete with prominent, multinational brands that already exist.
• The strong growth in the U.S. market within the last five years should encourage new entrants.
Substitute Products: Low
• The only substitute for bottled water is tap water.
Competitive Rivalry with Sellers: Moderate
• Factors such as switching costs and high storage costs tend to intensify rivalry.
• Bottled water is differentiated by its composition and attributes, but also benefits from investment and branding.
Forces that Affect Demand & Factors that Affect Cost
Forces that affect demand
• Geographic locations
• Availability/convenience
• Consumer preferences
Factors that affect costs
• Raw material quality affects costs since it must be free of various criteria, like contamination, and must have specified mineral
…show more content…
The main basis for competitive advantage is governance. The bottled water industry has excellent distribution chain operations with equipment specific to the industry. Industry competitors compete through market presence, with an oligopoly controlling the majority of the market through persistent acquisitions. This type of operational context is called ordinary economizing and includes well established competitors and customers (Porter, 1980).
Key Factors for Survival & Key Success Factors
There are a host of key factors for survival. Among them include inputs, distribution and name recognition. Bottled water industry inputs include the natural or public sources from which the water is bottled, treatment equipment and bottling and packaging suppliers (“Types and Treatment of Bottled Water”). Firms purchase or pay yearly amounts to access springs or municipal water systems. Firms must also decide what processing steps to apply to the water in order to meet FDA guidelines. While firms process their own water, bottling and packaging suppliers are readily available and more cost effective than bottling and packaging in
Nordstrom Essay
1052 Words | 5 PagesHREAT OF NEW ENTRANTS There is a Medium level of threat of new entrants into the Canadian retail industry for the following reasons: • Medium Barriers to Entry. While the Canadian retail industry did not live up to expectations the last few years, it has not stopped new and foreign retailers from entering in to this industry. Last year alone there were more than 50 international brands that entered Canada, which is quite high seeing as over the last several years only about 20 new retailers were entering Canada per year.15 These new retailers will also be looking to expand by opening more locations in various markets in the coming year.16 While there has been a spike in new entrants in the Canadian retail industry, it should be noted that it
Bottled Water Matters
275 Words | 2 PagesNot only is bottled water extremely regulated, but it is also a viable source of hydration for individuals in times of need; therefore one like myself once again disagree with Annie Leonard’s position against bottled water with evidence provided by IBWA. In the article, “Bottled Water Matters,” IBWA had shown the viability of bottled water through their statement, “ Bottled water companies respond with efficiency and speed with regard to provide bottled water in coordination with emergency relief operations.” This statement clearly demonstrates how bottled water can be very essential and lifesaving in times of need. For example, in a disaster like an earthquake, buildings, including tap faucets, would be demolish by the forces of nature.
Nt1330 Unit 4
662 Words | 3 PagesI learnt about the various channels available in the distribution landscape and how the shelf space offered by an established retailer has become an important commodity to compete for (Arnese et al., 2014). It is for this reason, our proposal to the distilleries was to initially target the HoReCa i.e. 120K bars, pubs, restaurants & hotels in the UK which are responsible for more than 35% on-trade consumption in the UK (IAS, 2017). However, the illustration of this piece of information could have been improved in the group
Bad To The Last Drop Rhetorical Analysis
974 Words | 4 PagesThese facts introduce and support the message that Standage is delivering. Standage continues with many statistics: “Admittedly, both kinds of water suffer from occasional contamination problems but tap water is more stringently monitored and tightly regulated than bottled water. New york city tap water, for example, was tested 430,600 times during 2004 alone.” He stated. Even though he admits that both of each kind contains chemicals-which at the same time Standage claims that the tap water is more sanitized-but also he points out that it is not the taste that differs between the two
Rhetorical Analysis Of Tapped
964 Words | 4 PagesWater is the greatest resource upon the Earth, but what happens when it runs out? Even worse, what happens when humans bottle the water, of which all life relies on, and sells it to us with false claims? Well, we've already been on the receiving end of this trick for years, almost unknowingly. The documentary Tapped, directed by Stephanie Soechtig and Jason Lindsey, gives a look into the bottled water industry and the effects it has on society. The film taps into human emotions, brings about logical reasoning and statistics, and uses sources with valid credibility to address a hidden issue.
Bottled Water In The 1800s
325 Words | 2 PagesThe recent trend of Americans carrying bottled water can be explained by its convenience, as it can be purchased in vending machines and grocery stores, and is a healthier choice than soda. In addition, carrying bottled water is a good idea to maintain one’s hydration throughout the day (“Tap Water or Bottled?,” 2006). Although dehydration, or loss of water from the body, is not a concern for many Americans, people who exercise without drinking, sick children and the elderly are susceptible to its effects. Affected individuals will experience thirst, headache, fatigue, and dizziness. In addition, if exercise is undertaken under conditions of dehydration a person may experience muscle cramp or ache (“The ‘8 glasses per day’ rule,” 2006).
Why Is Bottled Water Better Than Tap Water
1895 Words | 8 PagesThis is especially the opinion and suggestion of all bottling companies. According to Doria (2006), the convenience associated with the bottled water is because bottled water is portable. In addition, Doria (2006) notes that bottled water is always available and can be bought in any destination. A company like Nestle sells water in almost all countries. Besides, as indicated by Arnold & Larsen (2006), there is a general perception that the tap water goes under thorough purification before the actual packaging.
Coca Cola Demand Curve
1041 Words | 5 PagesDETERMINANTS OF SUPPLY CURVE 1. COST OF PRODUCTION: An increase in the cost of inputs of production such as sugar, caffeine and colors causes an increase in the cost of production. This means that an increase in cost will cause the supplier less willing to supply at a given rate. An increase in cost resulting from shortage of ingredients or disruption of supply is one of the common reasons why the suppliers cannot supply the product at a given price thus shifting the supply curve from S1 to S2.Adverse climatic fluctuations results in low productivity of agriculture which in turn affects Coca Cola.
Coca-Cola Company Competitor Analysis
955 Words | 4 PagesPepsiCo, Inc., is also owner of a couple of brands including Pepsi, Mountain Dew and Diet Pepsi. This shows us that these two companies are very big in
Compare And Contrast Coke And Mcdonald's Global Branding Strategies
2752 Words | 12 PagesBut with the changing tastes of consumers, it has expanded its menu which now includes salads, fish, wraps, smoothies, fruits and seasoned fries. The Coca-Cola Company, makers of coke, sprite, fanta, diet coke, coca-cola zero etc. The coca-cola company operates/sells beverages in more than 200 countries around the world. The most popular and selling drink of the company around the world is coke.
Coca Cola Market Structure Analysis
1093 Words | 5 PagesFirst, two firms control the vast majority of the market share, which include Coca-Cola and Pepsi. There are smaller firms in the market, but their market share in the industry is miniscule by comparison to these two dominant firms. Small companies generally lack the financial capital to launch brand on a large scale. Next, the barriers to entry in the industry are very high. Producing soft drinks for a wide market would require a significant investment in production equipment, brand material, and advertising.
Water Bottles Persuasive Essay
861 Words | 4 PagesThe Environmental Working Group found acetaminophen, caffeine, arsenic, and nitrate in 10 brands of bottled water." ("Is Bottled Water Better?" 1) Is it not a little scary to know that even if the water your drinking has a trace of danger, you may or may not be warned? It is also scary to think that mothers tend to use bottled water to mix with baby formula and that some of the brands they use actually could contain products that are potentially dangerous to their
Swot Analysis Of Smoothie
743 Words | 3 PagesTherefore, new companies could enter without needing large amounts of capital. • Product Differentiation: Although there is some level of differentiation among ingredients and flavors, predominant similarities exist among current products. New companies could
Coke And Pepsi Case Study
1101 Words | 5 PagesIn the carbonated soft drinks industry, Coke Cola and Pepsi Co are the biggest players in the market for aerated beverages. Both the companies have been competing strongly against each other for decades. The market is dominated by these two industry leaders with a total market share of 72%; Coke’s market share is 42% and Pepsi’s 30%. This is known as an oligopoly market; where there are few large firms competing with each other in the industry. Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market).
Coca Cola History Summary
2752 Words | 12 PagesHISTORY & BACKGROUND OF COCA COLA The Coca Cola company is known as one of the world’s largest carbonated soft drinks company that began before World War II. It is an American-based company found in 1886 by an Atlanta pharmacist. Dr. John S. Pemberton created the formula of French Wine Coca, which is known as Coca Cola now and introduced the carbonated soft drink as a patent medicine at first. The beverage became more noticeable when Frank M. Robison, Dr. Pemberton’s partner changed the product name and created the famous script logo, which he believed that will attract customer in advertising.
More about Bottled Water Competitive Analysis
Nordstrom Essay
1052 Words | 5 PagesBottled Water Matters
275 Words | 2 PagesNt1330 Unit 4
662 Words | 3 PagesBad To The Last Drop Rhetorical Analysis
974 Words | 4 PagesRhetorical Analysis Of Tapped
964 Words | 4 PagesBottled Water In The 1800s
325 Words | 2 PagesWhy Is Bottled Water Better Than Tap Water
1895 Words | 8 PagesCoca Cola Demand Curve
1041 Words | 5 PagesCoca-Cola Company Competitor Analysis
955 Words | 4 PagesCompare And Contrast Coke And Mcdonald's Global Branding Strategies
2752 Words | 12 PagesCoca Cola Market Structure Analysis
1093 Words | 5 PagesWater Bottles Persuasive Essay
861 Words | 4 PagesSwot Analysis Of Smoothie
743 Words | 3 PagesCoke And Pepsi Case Study
1101 Words | 5 PagesCoca Cola History Summary
2752 Words | 12 Pages