Essay about Competition in Bottled Water Industry

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Economic Characteristics
Market size and growth rate
The fastest-growing and most attractive beverage category in the world.
Global sales exceeding 38 billions gallons in 2003
Annual growth rate more than 10% between 1998 and 2003
U.S. is the world’s largest market with annual sales nearly 6.4 billions gallons.
Opportunities for increasing market share become lesser as currently in the early maturity stage

Number of buyers
Buyers included consumers, supermarkets, natural food stores, whole-seller, convenience stores and restaurants etc.
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 …show more content…
Visibility on the shelves gives retailers and convenience stores to demand for low price and slotting fees.

SWOT Analysis: Coca-Cola
Strengths
World’s leading manufacturer, marketer and distributor of non-alcoholic beverage.
The most Valuable Global Brand.
Vast global distribution system.
Market leading position in soft drinks industry.
The re-join of Neville Isdell as CEO in 2004.

Weaknesses
Overly dependant on sales of carbonated soft drinks.
Lack of product diversity.
Too narrow of product relative to rivals.
Highest in overall unit cost for bottled water.
Weak in product innovation capabilities.
Using inappropriate strategy.

Opportunities
New bottled water markets through joint venture with Danone Waters.
Expand its product line with developed of Dasani NutriWater.
Expanding to foreign countries with local name: Bon Aqua and NaturAqua.
Acquisition of a spring in Derbyshire, England.

Threats
Annual growth rate of bottled water sales slowdown in U.S. in year 2003.
Increasing intensify of competition among bottled water producers.
Introduced of innovative product by PepsiCo, Nestle and Danone.
The FDA and foreign countries government’s regulation.

SWOT Analysis: PepsiCo
Strengths
World’s fourth largest food and beverage company.
Brand diversification and best selling brand.
Well established in food and beverage industry.
Vast beverage
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