...Global and US beverage industry – macro environment * In 2009 the global sales of beverages industry was $ 1 581,7 billion, with a forecasted sales value of $ 1 775,3 in 2014. * In 2009 48,2% of the market share belonged to carbonated soft drinks, 29,2% to bottled water, 12,4% to fruit beverages, and the rest to alternative beverages. * Consumers were reducing their consumption of carbonated soft drinks, with a growth of – 2,3% in 2009. Consumer preferences have shifted. * The global growth of alternative beverages grew from 2005 to 2009 from $ 27,7 billion to $ 40,2 billion, with a projected value of $ 53,3 in 2014. * The $ value global market growth for alternative beverages grew at a 9,8 % annually between 2005 and 2009, and has a forecasted growth rate of 6,7 % between 2010 and 2014. * Of the alternative beverages market, the USA has 42,3 % of the share, Asia- Pacific has 31,5 %, and Europe has 22,2 % of the share. * In the US, sports drinks accounted for almost 60 % of alternative beverages sales, while vitamin- enriched drinks and energy drinks accounted for about 23 % and 18 % of 2009 alternative beverage sales. * Saturation rate for all types of beverages was high in developed countries. * Market maturity and poor economic conditions caused the US beverage industry to decline by 2,3 % in 2008 and by 3,1 % in 2009. * The entering of new geographic areas, the steady growth of the purchasing power of consumers in developing...
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...Week Three Individual Paper: Organizational Impact Paper Introduction Innovation is what gives businesses the competitive advantage the company will need to be profitable in the market. Innovation impacts the strategy, process, products and services that a company has to offer. Three organizations that have greatly used innovation are Discover Financial Services, Apple Inc, and McDonalds. The impact that innovation has on an organization is significant. Defining what innovation, creativity, and design are to and organization and the impact it can have on an organization. When an organization looks at innovation the company should be looking for a new way to do something. To expect change in innovation cannot be avoided in this changing and competitive world of business, changes will always be necessary to stay competitive. The three organizations I have chosen are Southwest Airlines, IBM Corporation and Motorola Company let see how innovation impacts these organizations. Organizational Impact Paper Innovation is what gives an organization the competitive advantage the business will need to be successful in the market. Innovations are ideas that can impact the strategy, process, products and services that an organization has to offer to its customers. Three organizations that have an enormous impact on innovation are United Parcel Service (UPS), Hewlett-Packard and The Coca-Cola Company. Apple Inc. Apple Inc has been a computer company with ups and downs in its...
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...What is competition like in the alternative beverage industry? Which of the five competitive forces is strongest? Which is weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants? Since the recession in 2008 in the U.S., the alternative beverage industry has been negatively influenced. Consumers then realized the high price of soft drinks, which made the sales dropped every year. Sociologically, consumers are concerned about health problems that they can get from soft drinks. In particular, energy drinks with mixed alcohol effects became physician's warnings and caused consumers to raise awareness and demand innovation. In addition, companies have to improve their technological advances in order to promote their brands. Many companies became more innovative and competitive by producing products with advanced chemicals to lower calories and health issues. To become the leading sellers in the alternative beverage industry, companies have to advance their competitive prestige.Substitutes are a strong competitive force. If buyer's bargaining power gets stronger, substitutes will be introduced. Substitutes can attract buyers with competitive price, They also join the market after so companies can adapt positive feedback from consumers to advance substitutes.Supplier bargaining power is the weakest. Unique improved supplements can only be found from a few sources. There are plenty of packaging suppliers...
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...SWOT analysis of the Niagara project Strengths: The main strength of the Niagara or less-water beverage technology project is that it tackles very serious economic issues in an efficient way. Because of the growing population, the changes in lifestyle and eating habits, and the production of biofuels, the demand for water increases by 64 billion cubic meters a year. In industrialized countries industry forms more than half of the total water usage, and the food and beverage industry has a particularly intensive water consumption. With the innovations of the Niagara project in the beverage industry, compared to a traditional basic plant, an extra 33% of primary water can be saved, and there will be a 56% reduction in wastewater. Furthermore, this same technology reduces harmful gas emissions during the production process, thus reducing a cause of the greenhouse effect. Weaknesses: As it is with many other eco-innovation projects (solar power, electronic cars, etc.), less-water beverage technology suffers the weakness of being expensive. Currently, it can save 25% of the water used annually, which, even though still being below the expected goal of the project, should significantly reduce beverage production costs in the long run. In spite of this, some companies refuse to upgrade to this technology, because the initial costs are high. Opportunities: For the Niagara project expansion is a very promising opportunity. Currently A DUE, the launcher and main promoter of the project...
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...INNOVATION: THE COCA-COLA CHALLENGE Abstract The Coca-Cola Company fully understands the meaning of innovation as evidenced by their ever-growing brand portfolio and internal processes. In this paper, I discuss Coke's three cola strategy as both a product and service innovation. Such strategy was implemented to widen the market presence of Classic Coke, Diet Coke and Coke Zero. The three cola strategy was developed initially for the purpose of rekindling the growth of the sparkling beverages. The strategy is basically a campaign to boost public confidence wherein an array of marketing, advertising and promotion was implemented. The three cola strategy was backed by Research Council towards the development of consumer-centered innovation. Introduction Overview of the Organization The Coca-Cola Company Founded by Asa Griggs Candler in 1882 in Atlanta, Georgia, a company that fully understands the importance of innovation in business is the Coca-Cola Company. Coca-Cola, or simply Coke, chose to concentrate their operation on production of soft drink syrup while maintaining an intimate relationship with its bottlers and distributors at the retail level. Basically, the company is engaged into blending raw material ingredients (product planning), packaging in plastic canisters (market research) and shipping to bottlers (advertising). In 1886, John Stith Pemberton invented the company’s flagship product Coca-Cola. Today, Coca-Cola Company offers more...
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...ENVIRONMENT ANALYSIS Define the Type of Organisation and the Industry it operates in? ABL Limited is a beverage and snack company operating in the Australian Non-Alcoholic beverage market. ABL has a decentralized organizational structure and is listed on the ASX. ABL is looking at expanding into the Australian bottled water manufacturing industry. The major segments of the Austalian bottled water manufacturing industry are still water 74% and sparkling water 24% value 963m litres in 2011 Value Chain Analysis Water Treatment Bottling & Packaging Distribution Retailer Supply Labeling 55% 26.8% Wages 12.1% Depreciation 4.1% Utilities and Rent 1.8% Segments Analysis: The Life cycle Stage of the Industry The Australian bottled water industry is in a growth phase. The industry has evolved since 1990 out of the soft drink manufacturing industry and is achieving a high rate of growth as seen in table 4 where Bottled water is expected to grow from 13.3% of Non-Alcoholic beverages to 17.4%. Consumption per capita of water is also expected to grow in the future as well as revenue from sales of still and sparkling water. A recent report by the Global Earth Policy Institute concluded that global consumption of bottled water rose by 56.8% to 164 billion litres from 2007 to 2011. Growth phase is further evident by a net profit rate of 16.3% which is high. . Industries Future Growth Remote Analysis (Growth) |Factor ...
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...services in the United States and abroad. Its financial consulting services include financial and economic analysis; restructuring, turnaround, and bankruptcy advisory services for financially distressed organizations, creditors, and other constituents; valuations of businesses or assets to assist clients with financial reporting and restructuring efforts; and focused consulting. The company’s operational consulting services comprise assisting clients with research administration opportunities and challenges; assisting clients to assist their strategic, operational, management, and financial challenges. Innova International serves an array of industries, including professional services, transportation services, healthcare, telecommunications, financial services, consumer products, energy and utilities, manufacturing, and food and beverage. The company was founded in 1996 and is headquartered in Boston, Massachusetts with major subsidiaries in Poland, China, and Japan. II. The Company: Hagan & Company Hagan & Company is one of the world’s largest food processing companies. Hagan occupies the first or second position in most product categories and invests heavily in established brands through marketing and research and development. Hagan’s growth has come through acquisitions and steady penetration into developing markets. The company operates about 500 factories in more than 100 countries and has more than 250,000 employees worldwide. Hagan is focused on people, products...
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...and Vitamin-Enhanced Beverages Executive Summary Beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets. Energy drinks, sports drinks, and vitamin-enhanced beverages were the stars of the beverage industry during the mid-2000s. Rapid growth in the category, coupled with premium prices and high profit margins made alternative beverages an important part of beverage companies' lineup of brands. On the other hand, Fifth consecutive year data show that U.S. consumers had purchased fewer carbonated soft drinks than the year before. Carbonated soft drinks sales would continue to decline as consumers developed preferences for bottled water, sports drinks, fruit juices, readyto-drink tea, vitamin-enhanced beverages, energy drinks, ready-to-drink coffee, and other types of beverages. Even though the global beverage industry was projected to grow from $1.58 trillion in 2009 to nearly $1.78 trillion in 2014 as beverage producers entered new geographic markets, developed new types of beverages, and continued to create demand for popular drinks., beverage producers also were forced to contend with criticism from some that energy drinks, energy shots, and relaxation drinks presented health risks for consumers and that some producers' strategies promoted reckless behavior. Although sports drinks and vitamin-enhanced beverages were also available...
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...strategically relevant components for the global and U.S. beverage industry macro-environment are market growth rate, market size, segmentation and scope of rivalry. Economic characteristics of alternative beverage segment differ from other beverage categories in several ways. The market size for alternative beverage was $40.2 billion globally and $17 billion in the United States, while the market size for other beverages was $ 1,548.3 and $28.9 billion globally. Market growth rate for alternative beverages between 2005 and 2009 was 9.8 percent while for other beverages it was 2.6 percent. Question two The competition in the alternative beverage market was strong. Pepsi and Coca-Cola were competing for the top spot in the production and distribution of their beverages. The strongest competitive force was bargaining power and leverage of buyers. Most stores were negotiating for lower prices since they bought the beverages in large quantities. Since Pepsi and Coke had an established brand, their alternative beverages found automatic shelf space in most stores and wholesale clubs. The weakest of the five competitive forces was the bargaining power and leverage of suppliers. The reason is that the packaging from different suppliers was similar, thus it was easy to substitute the packaging from most suppliers, and thus they had weak bargaining power. The competitive force that seems to have the greatest effect on industry attractiveness is competition from substitutes. This is why...
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...a. What type of organization is Australian Beverages Limited (ABL)? ABL is an Australian public listed company operating in multi-beverage business. It commenced operation in 1937 with its first manufacturing plant opened in Sydney in 1938. After a series of market expansions, ABL is currently the second largest company in Australia non-alcoholic beverage industry. The company is run by Tom Dwyer, the current managing director, who has been appointed since 2005. b. What industry, product segments/markets does ABL operate in? ABL is currently the second largest company in Australian non-alcoholic beverage industry. With the exception of bottled water, ABL operates in almost all product segments of non-alcoholic beverage market, that is, carbonated soft drinks (CSD), fruit and milk-based drinks, etc. It has also moved into snack food market through acquisition of several small businesses. Its core activities include manufacturing, distribution and marketing. c. What is the current life-cycle position of the industry? Non-alcoholic industry ➢ The non-alcoholic beverage industry is at the growth stage of its life cycle. This is evidenced by: (1) Consumption of non-alcoholic beverage in Australia increased form 179.7 liters per capita in 2005 to 228.5 liters per capita in 2009, representing a 27% increase. (2) As Australian per capita consumption follows US pattern, Australian’s current level of 63% of US per capita consumption indicates significant opportunities for growth...
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...Australian Beverages Ltd-Pre-seen case study information A Introduction to Australian Beverages Ltd In 1937, Australian Beverages Ltd (ABL) commenced manufacturing soft drinks [non-alcoholic drinks rather than 'hard' drinks that contain alcohol]. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit- and milk- based drinks. In 2011, the company was Australia's largest supplier of non-alcoholic beverages. Tom Dwyer, the current Managing Director, has been with the company since 2008. He joined the company at a time when carbonated soft drinks (CSDs) growth was stagnating and shareholder confidence in the company was waning. Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. From this review the importance of operational excellence was identified and strong investment was made in world-class manufacturing facilities and systems. Process re-engineering was implemented to reduce the costs of manufacturing and time-to-market. Given the declining consumption of CSDs, Managing Director Tom Dwyer has sought to reduce ABL's reliance on them, focusing on growing new products and entering new non-alcoholic beverage categories since his appointment in 2008. Alongside significant investment in product development of other non-alcoholic beverages, several acquisitions have been made to...
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...Australia Beverage Ltd (ABL) 1. What type of organisation is ABL? o ABL was established in the 1938’s. The company is now a publicly listed entity, having been listed since 1996 on the ASX. o Tow Dwyer (TD) is the MD who joined in 2008. During that time, the company was experiencing low shareholder confidence and low growth of its traditional area which is carbonated soft drinks (CSD). TD was able to relief the company with successfully strategic planning and now ABL became the second largest non-alcoholic beverage manufacturer in Australia. 2. What industry, product segments/markets does ABL operate in? o ABL is in the Australia non-alcoholic beverage industry. ABL is the second largest non-alcohol beverage manufacturer in Australia and is not far behind the industry leader, Butlers Corporation. Their core activities is producing a diverse range of non-alcoholic beverages from carbonated soft drinks (CSD), milk drinks, fruit drinks, sports drinks, ready-to-drink tea/coffee and energy drink as well as snack food products. o Unlike other competitors, ABL is currently not in bottled water industry but the company see an opportunity in going into producing bottled water to offer a wide range of products in order to move from the second largest non-alcoholic beverage manufacturer to the largest non-alcoholic beverage manufacturer. The bottled water industry consists of two segments which is still water and sparkling water. Further, a recommendation is required...
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...Exam case Australian Beverages Limited Pre-seen information Semester 1 2010 Australian Beverages Limited — Pre-seen information A. Introduction to Australian Beverages Limited — March 2010 Australian Beverages Limited (ABL) commenced soft drink manufacturing in 1937. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit and milk-based drinks. Entry into the snack food market was recently undertaken in response to declining consumption of carbonated soft drinks (CSDs), the company’s traditional area of business strength. This move also enabled ABL to leverage its strong distribution capabilities to supermarkets, convenience stores and hospitality channels by adding adding such complementary food products to non-alcoholic beverages. Nevertheless, CSDs still accounted for 90 per cent of company revenue in 2004. Tom Dwyer, the current managing director, has been with the company since 2005. He joined the company at a time when CSD growth was stagnating and shareholder confidence in the company was waning. This had resulted in the share price declining by 15 per cent in the two years prior to his appointment. In order to restore shareholder confidence, Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. From this review the importance of operational excellence was identified and strong...
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...Case Discussion: Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages Assignment Questions: 1. What are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain. Global beverages companies like Coca Cola had relied on those beverages to sustain volume growth in mature markets where consumers were reducing their consumption of soft drinks. These companies wanted to expand the market for alternative beverages by introducing new drinks into emerging markets. Beverage producers made numerous attempts to increase the size of the market for those types of beverages by growing product lines and increasing sales and market share. They were faced with criticism of alternative beverages as presenting health risks or not yielding the advertised results. Rapid growth in the market and premium prices/high margins made the alternative beverage market an important part of beverage company strategy. The economic characteristic of the alternative beverage segment if the industry is differ from that of other beverage categories. Alternative beverages competed on the basis of differentiation from traditional drinks such as carbonated soft drinks or fruit juices. The market started out with low competition, however that is rapidly changing as many new product lines enter and profit...
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...the market, organization must have clear vision and comprehensive marketing strategies. Over the decades, Coca Cola competed from a local scope to an international scope, from selling one type of Coca-Cola product in United State to selling over 500 different products in the global beverage market, it has been doing a very good job which allow Coca Cola to be the world’s largest beverage company today. THE COCA-COLA COMPANY - Coca Cola is the world’s largest beverage company which manufactures beverage concentrates and syrup to their franchised bottlers who make and deliver the final bottle drink to the market. The Coca-Cola Company was established in 1892 by Asa Candler. Besides the main product Coca-Cola coke, the company currently produces over 500 brands of other beverages and sells to more than 200 countries all over the world. Coca-Cola’s mission is to refresh the world, inspire moments of optimism and happiness and to create and make a difference. THE GLOBAL BEVERAGE INDUSTRY - The global beverage industry is made up of manufacturer of carbonated soft drinks, juices, functional drinks and bottled water. Coca Cola Enterprises remains the market leader of the industry over the years. The industry has been recorded in growing revenue and consumption. Although there is average growth in...
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