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Australia Beverage Limited

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Submitted By sakura1921986
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Pages 7
Case 3: I. EXTERNAL ENVIRONMENT:

INDUSTRY VALUE CHAIN:

water (transporting from mountains), bottles (from suppliers) → water processing (still or sparkling) and packaging (manufacturer) → delivering (logistics) → merchandising and retailing → marketing → consumers

DRIVERS of industries in aus: * health awareness: increasing awareness of obesity problem in aus * convenience factor: traveling for biz or leisure, popular pack size 600ml * other drivers not applicable for aus: climate, lack of clean drinking water (mexico, united arab emirates), fashion (france, italy, austria) THREAT: * environmental awareness: impact of bottles (plastic) on landfill, carbon output of production and distribution * substitute: tap water (low environmental impact, cheaper, readily available) * water imports: low threat due to high volume and low unit value of water

INDUSTRY SEGMENTATION in AUSTRALIA: 1) STILL water: * 86% of consumption volume in 2013 * drivers: diet choice, healthier choice, substitute of tap water, convenience for traveling/leisure activities

2) SPARKLING water: * 14% consumption volume * drivers: refreshment drink when dining out, image of premium products

INDUSTRY LIFE CYCLE: potential for higher rate of consumption and sales growth before it reaches maturity → GROWTH STAGE, current levels of profitability are expected to continue. * new competitors, rivalry is low * relatively low buyer power due to supply shortfall * short of cash (not cash cow) as funds are invested in expansion and catered for high-growth rates * organization concerns with keeping up with current demand, not looking towards the future * no competitive differentiation as enough room for everyone

PESTEL - remote environment: 1) Political: 2) Economic: 3) Social: 4) Technological: 5)

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