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 cost is minimal. Manufacturers put emphasis on their branding, marketing strategies and distribution channels to beat the rivals. Considering the above, industry rivalry comes out as high.
(2). Threat of new entrants