...Review on Myanmar Bottled Water Industry with Porter’s Five Forces Review on Myanmar Bottled Water Industry with Porter’s Five Forces Introduction Bottled drinking water used to be a prestige product till 1990s in Myanmar. Then, the use of bottled water has grown considerably since factories were first set up in the mid-1990s. According to Myanmar Food and Drug Administration (FDA), there are 657 bottled water factories in 2013 which were rose form 320 factories in 2008. Bottled water culture has penetrated even into rural areas of Myanmar where majority of people previously held the view that bottled water was a waste of money. It is due to increasing urbanization, limited time to boil tap water, increasing suppliers and better delivery, convenience and portability. Myanmar bottled drinking water industry is currently dominated by Alpine which has 65% market share, according to the company reports. Analysis with Porter’s Five Forces An industry's competitive dynamics and profitability can be deducted by analyzing with Porter's Five Forces. (1). Rivalry among existing competitors Even though, Alpine has dominated the market, competition among second-tier brands such as Oasis, PMG, KTM , ICE, Sampar Oo, Max'2'0, Imperial Jade, KA is high. As bottled water has become a commodity-like product, customer switching...
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...The Bottled Water Industry Threat of entry of new competitors is low. Firstly, the competitors that currently exist are large, dominating companies who already own a huge market share of the industry. New entrants attempting to enter the market will have compete with established brands such as Coca-Cola, PepsiCo, and Nestle. These brands have decades of experience in the food & beverage industry, have developed brand recognition & loyalty and have achieved low-cost production and distribution capabilities that cannot be easily matched. Secondly, it is expensive to initially develop the infrastructure to produce the product. The case states that prices for bottle-filling lines range from $125,000 to over $100 million, not to mention the costs associated with “source certification, road grading, and installation of pumping equipment …” which require approximately $300,000 worth of investment. Threat of substitute products/services is high. Numerous bottled and non-bottled products that can easily substitute bottled water. The main factor that differentiates bottled water from other soft drinks is that it caters to a health-conscious market because it has no sugar and no calories. However, today, there are several healthy soft drinks that are ‘zero-sugar added’, ‘zero-calorie’ alternatives to water. Coke zero, crystal light powders, diet sodas, zero-calorie energy drinks, etc. are just some examples. Tap water is also a substitute product because many people simply trust...
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...Assignment Title; Marketing Topic; Launch of BUXTON (Nestle) Bottled water in Indian market Table of Index INTRODUCTION........................................................................................................................................... REASON FOR BUXTON TO ENTER IN INDIAN BOTTLED WATER MARKET.............................................. MARKET ANALYSIS OF INDIAN BOTTLED WATER INDUSTRY................................................................ A) Five Forces analysis........................................................................................................ B) SWOT Analysis.............................................................................................................. MARKETING STRATEGY(PRICE AND PRODUCT STRATEGY) FOR BUXTON.............................................. A) Pricing strategy........................................................................................................ B) Product strategy........................................................................................................ C) Place strategy........................................................................................................ D) Promotional Strategy........................................................................................................ CONCLUSION AND RECOMMENDATIONS...
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...http://www.5dmag.com/wp-content/uploads/2010/08/bottled-istock.jpg QUENCH BUSINESS PLAN 1) COMPARISON OF EFFECTUATION AND CAUSATION MODELS NAME: HAMIDULLAHSHIRZAI STUDENT ID: B0627MHMH0213 COURSE: MBA (FEBRUARY) SUBJECT: MSE SUBMISSION DATE: 17.04.2013 ABSTRACT This is a business plan for a new venture called Quench and in this Plan different business theories are used and different marketing Tools and techniques are highlighted in order for a new business to begin its new venture efficiently and effectively. The report covers all the relevant techniques can be used in developing a new venture 1.0 Introduction The word entrepreneur is derived from the French word “entreprendre” that means to eundertakei.i.e... The person who undertakes the risk of new enterprise. The word entrepreneur, consequently, first acted in the French language in the commencement of the sixteenth century. The word was also applied to the leaders of military expedition. But it was Richard Cantilon, an Irishman, living in France who first used the term entrepreneur to refer to economic activities. According to Cantilon: “an entrepreneur is a person who buys factor services at certain prices with a view to selling its product at uncertain prices.” Thus, to Cantilon, an entrepreneur is a carrier of risk which is non-insurable. One of the most well-known French economists Jean Baptiste Say defined the term entrepreneur in an expressive manner. According to J.B Say: “an entrepreneur...
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...Cola Wars Continue: Coke and Pepsi Case Analysis 1. Soft Drink Industry (SDI) overview The industry considered in this analysis is Soft Drink Industry (SDI). SDI serves customer needs for refreshing and cold non-alcoholic beverages, with main industry sectors being: carbonated drinks, fruit punches, and bottled water sectors. There are three dominant companies in the industry, namely: Coca-Cola, Pepsi, and Schweppes. The soft-drink industry includes the following four major types of participating companies: • Producers of syrups and concentrates, • Bottlers, • Retail channels, and • Suppliers. 2. Porter’s Five Forces Analysis of the Soft Drink Industry (SDI): Soft Drink industry’s Carbonated Drink sector is 66 billion industry in US alone. Soft Drink industry remains very profitable, with pre-tax profits of 30% and 9% for concentrate producers and bottlers respectively. The following five forces analysis will attempt to show factors contributing to the profitability in the industry. Risk of entry by Potential Competitors: It is difficult for new entrants to enter the market because of few factors: First, in order to produce soft drinks a new company would have to have bottling or some other kind of packaging capacities or contracts with bottlers or packagers. To build a new bottling plant is very capital intensive and to enter in a contract with existing bottlers is difficult if not prohibited by the Coca-Cola and Pepsi’s agreements with existing bottlers. Because it...
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...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...
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...Contents 1 Overview 2 General environmental analysis 3 Industry Analysis 3.1 Industry Structure - U.S. soft drink market share of concentrate producers - Suppliers within the carbonated soft drink industry 3.2 Market Structure - U.S. Liquid Consumption Trend (gallons/capita) - U.S. non-alcoholic refreshment beverage volume 2009 - U.S. soft drink market share – soft drink brands 3.3 Marketing Channels 3.4 Porter’s five forces 4 5 4 2 2 2 2 4 Competitive / corporate strategies of Coke and Pepsi 5 SWOT Analysis 6 Questions 6.1 How has the competition between Coke and Pepsi affected the industry’s profit? 6.2 If it has been such a profitable industry, why have so few firms successfully entered this business over the last century? What are the barriers? Why have Coke and been so successful in launching their products? 6.3 Why, historically, has the soft drink industry been so profitable? 6.4 Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? 6.5 How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs? 7 9 11 Exam Case Study Cola Wars Continue: Coke and Pepsi in 2010 1 Overview (Power Point Page (PPP) 2) For more than a century, Coke and Pepsi compete for market share within the world’s beverage market. The most intense battles were fought over the $74 billion carbonated soft drink (CSD) industry in the United States that lasted until the mid-1990s...
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...Contents 1 Overview 2 General environmental analysis 3 Industry Analysis 3.1 Industry Structure - U.S. soft drink market share of concentrate producers - Suppliers within the carbonated soft drink industry 3.2 Market Structure - U.S. Liquid Consumption Trend (gallons/capita) - U.S. non-alcoholic refreshment beverage volume 2009 - U.S. soft drink market share – soft drink brands 3.3 Marketing Channels 3.4 Porter’s five forces 4 5 4 2 2 2 2 4 Competitive / corporate strategies of Coke and Pepsi 5 SWOT Analysis 6 Questions 6.1 How has the competition between Coke and Pepsi affected the industry’s profit? 6.2 If it has been such a profitable industry, why have so few firms successfully entered this business over the last century? What are the barriers? Why have Coke and been so successful in launching their products? 6.3 Why, historically, has the soft drink industry been so profitable? 6.4 Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different? 6.5 How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs? 7 9 11 Exam Case Study Cola Wars Continue: Coke and Pepsi in 2010 1 Overview (Power Point Page (PPP) 2) For more than a century, Coke and Pepsi compete for market share within the world’s beverage market. The most intense battles were fought over the $74 billion carbonated soft drink (CSD) industry in the United States that lasted until...
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...Business/Financial Analysis Team Project Name Institution Business/Financial Analysis Team Project 1.0 Executive Summary The Company for analysis is the Coca-Cola Company. It operates in the soft drinks industry. This company is known to be among the oldest companies that manufacture non-alcoholic beverages. Among the main competitors of Coca-Cola is Pepsi. Coca-Cola is a multinational that has subsidiaries in almost every corner of the globe. It is a publicly traded company with a current market price for its stock at 46.39 % as at 31st March 2016 which translates to a deviation of 0.41%.An analysis of Coca-Cola Company reveals that Coca-Cola is currently grappling with issues related to its market share, quality of its soft drinks and production processes. These problems have in turn decreased their market share and its competitive advantage. Competitors have taken this as the advantage to increase their sales and revenue. The notable competitors for Coca-Cola Company are Pepsi, Nestle S.A, Dr. Pepper Snapple group inc., and Nestle Waters France. This study undertakes an analysis of Coca-Cola's industry with an aim of finding the root causes of these problems and how Coca-Cola can overcome them. Michael Porter’s five forces model, ratio analysis, analysis of market capitalization, business model, and strategy are some of the main approaches that this study applies in analyzing the Coca-Cola Company. Nevertheless, the Coca-Cola Company remains competitive, and investors...
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...Individual Assignment Table content Content Page number Acknowledgement……………………………………………………………….……………1 Executive summary ……………………………………………...………………………..…..2 Introduction 4 Task 01 – Report 6 (LO 1.1) Strategic context 6 (LO2.3) Stakeholder analyzing 9 (LO2.1) Organizational audit 11 Porter’s Value Chain for Coca Cola Company 11 VRIO Framework 14 (LO 2.2) Environmental audit 16 PEST analysis 16 Porter’s five forces analysis 18 SWOT analysis for Coca Cola Company 20 (LO1.3) Different planning techniques 22 Product life cycle 24 BCG Matrix 25 GE Matrix 26 (LO1.2) Criticisms of strategic planning 27 (LO 3.1) Ansoff’s Growth Strategies 29 (LO3.2) Future strategy for the Coca Cola Company 33 (LO4.1) Roles and responsibilities for strategy implementation 34 (LO4.2) Resources requirements for new strategy (Water purification system) 36 (LO4.3) Time scale to monitor the strategy 37 Conclusion 38 References 39 List of Figures IV. IV. Figure Page Number Figure 01 – Stakeholder analyzing 9 Figure 02 - Porter’s Value Chain 11 Figure 03 - VRIO framework 15 Figure 04 - PEST analysis 16 Figure 05 - Porter’s five forces analysis 19 Figure 06 - BCG Matrix 25 Figure 07 - GE Matrix 26 Figure 08 - Ansoff’s Growth Strategies 29 Figure 09 - Ansoff’s Growth Strategies for Coca Cola 32 Figure 10 - Time scale……………………………………………………………………......37 Introduction In this assignment describe the strategies of the Coca-Cola Company...
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...Project Report on Product and Brand management in The Market of Branded Water Bottle Industry with reference to “BISLERI” Dr. Sanjay Patro, XLRI Report by 207 Anmol Rohatgi | 218 Gajanan Kulkarni | 220 Heemanish Midde 25th October 2008 Xavier Institute of Management & Research, Mumbai Mumbai University EXECUTIVE SUMMARY The packaged drinking water industry is in the growth stage. A number of leading players have emerged such as Bisleri, Aquafina, Bailey, and Kinley. There are other significant players like Yes, Ganga, Himalayan and many others. Foreign players in the local market such as Evian and Perrier also characterize the industry. At present, the Indian market is also less organized and not much branded. In this context, the industry needs to be studied to find the structure in terms of players, substitutes and others factors governing the success of leading players. This report attempts to study the following: Market Study Packaged drinking water market in terms of major players, market size, growth, and market shares of players, segmentation statements and positioning of the various products available. Consumer Study The consumer segments and their habits and practices also have been studied along with packaging technologies available and the importance of distribution and logistic networks. Strategies To analyze the reasons for success and make a set of best practices and strategies for the players. The company profiles also need to...
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...Identify the industry, product segments and value chain Industry – Australian bottled water manufacturing industry Product segments includes stilled water and sparkling water Value chain – (upstream) Access to water supply > Manufacturing > Packaging > Distribution > Retailers > Consumers (downstream) 2. Current life cycle position of the industry Australian bottled water manufacturing industry is at the growth stage of its life cycle. It is evolved out of the soft drink manufacturing industry during the 1990s, hence considered a relatively new industry. It is the fastest growing category in the non-alcoholic beverage market in Aus in 2011. Growth is demonstrated that despite from a relatively low base compared to other more established beverages, it shows increase per capita consumption. This is shown in Table 1 that bottled water growth from 2001 to 2011, increasing significantly from 6.4% in 2001 to 13.3% in 2011 (i.e. a 107.8% increase over the period). It is also projected to increase by 30.8% from 2011 to 2016. Despite having Energy drink, ready to drink tea/coffee, sports drinks and milk drinks are also experiencing growth; however bottled water has the largest market share of all the other growing non-alcoholic beverages. A recent report by Global Earth Policy Institute shows that global consumption water rose 56.8% to 164 billion litres from 2007 to 2011. Australians consumed 963 million litres of bottled water, is lower comparison...
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...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...
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...name: Malvina Shahini 0 EXECUTIVE SUMMARY 2 INTRODUCTION AND COMPANY BACKROUND 2 INDUSTRY 3 GEOGRAPHICAL MARKET 4 PRODUCTS AND SERVICES 4 MARKET SEGMENTATION 5 MISSION, VISION AND VALUES 6 COMPANY'S STAKEHOLDERS 8 PART I: EXTERNAL ANALYSIS 9 PESTLE ANALYSIS 9 PORTER'S 5 FORCES OF COMPETITION MODEL 11 PART II: INTERNAL ANALYSIS 14 VALUE CHAIN MODEL 14 VRIO FRAMEWORK 16 BCG ANALYSIS 17 POSITIONING 17 PART III: COMPANY’S CORPORATE AND BUSINESS STRATEGY 19 PART IV: IDENTYFYING ISSUES AND CHALLENGES FACING THE COMPANY 20 PART V: IDENTIFICATION AND EVALUATION OF THE MAIN STRATEGIC OPTIONS FOR GROWTH 22 ANSOFF MATRIX MODEL 22 PART VI: RECOMMENDATION AND CONCLUSION 24 REFERENCE LIST 24 EXECUTIVE SUMMARY This paper is a strategic analysis of The Coca-Cola Company, a leader in the beverage industry. Coca-Cola, the world’s leading soft drink maker, operates in more than 200 countries and owns or licenses more than 500 brands of non-alcoholic beverages. The company faces challenges in today’s market because of market changes, socio-economic changes and globalization. The purpose of this assignment is to assess the current situation of the Coca-Cola Company and to provide recommendations on strategies that the firm can pursue in the future. In detail, an external analysis of the company is performed to understand the impact of environment. An internal analysis of Coca-Cola is performed as well to understand the internal capabilities. Moving on...
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...of strategic rivalry on cola industrys structure and performance (See Exhibits 1 & 2 for analysis) A. Implications on structure of cola industry 1. Bottlers have been consolidated by concentrate producers (CP), placing smaller CPs at the mercy of Pepsi and Coca-Colas distribution systems (See Exhibit 3) a. Making it tougher for smaller CPs like Cott Corporation to compete and leaving them open to the threat of acquisition b. Exposing Coca-Cola and Pepsi to the risk of anti-trust legal or regulatory action with bottlers’ exclusive territories and policies that forbid carrying competing cola products 2. Bottlers profitability is in danger with slim margins and declining growth (See Exhibit 4) a. CP should come to bottler’s aide with financial assistance, concentrate price breaks or increased marketing to preserve industry structure b. Bottlers will have to upgrade their technology to handle expanded product lines (See Exhibit 2) c. Bottlers should consider diversifying into snack food distribution through alliances or CP acquisitions like Pepsi’s Frito-Lay division B. Implications on performance of cola industry 1. CSDs made up a substantial share of 2000 US Liquid Consumption (See Exhibit 4), but this doesn’t make them immune to risk a. Declining stock prices show a corrected over-valuation of companies (See Exhibit 4) b. Declining growth rates for carbonated soft drinks and increasing non- carbonated beverage growth rates further threaten industry performance (See Exhibit 4)...
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