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Australian Beverages

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Submitted By mjlano
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Understanding the external environment (Industry attractiveness)
1. Identify the industry, product segments and value chain.
The industry is the Australian Non-alcoholic beverage industry. Currently, Australian Beverages Ltd is the second largest competitor behind Butlers Corporation. Industry consolidation has been occurring but is not expected to continue in the future due to the relatively high market shares held by major competitors. Core operations cover processing and bottling (not retailing). Product segments include CSD (in decline stage), Diet CSD, Fruit Drinks, Milk Drinks, Energy Drinks, Sports Drinks, and Ready to drink coffee/tea. Entry into the snack food market was recently undertaken.
2. What is the current life cycle position of the industry?
The Australian Non-Alcoholic Beverage Industry is at the mature stage of its life cycle. Whereas, the bottled water manufacturing industry is currently in growth stage. Major segments of the bottled water industry are still water and sparkling water.
3. What have been the key issues affecting historical and future industry growth? What was their impact or their likely impact and the overall assessment of the industry’s future growth?
Key Issues influencing growth, using PESTEL Model (Analysis of industry as a whole including bottled water industry. Trends in broad industry also impact the bottled water industry)
FACTOR ISSUE Historical / Future NATURE OF IMPACT (+ / = / -)
Politics  Import Tariffs – only affects water with additives (less incentive for competitors to enter market)
 Price of water low compared to other countries H/F

H/F Positive

Positive
Economy  Increase consumption per capita (unit of population)(Bottled water)
 Exports & Imports represent 5% of industry (these figures aren’t expected to change due to high cost of transporting heavy weight) F

H/F Positive

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