Bottled Water Industry: Competition, Trends, and Strategies Essay

Bottled Water Industry: Competition, Trends, and Strategies Essay

Length: 1933 words (5.5 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

This paper answers the following questions:

1. What are economic characteristics of the bottled water industry?
2. What is competition like in the bottled water industry?
3. Which strategic groups do you think are in the best or worst position?
4. What are the successful key factors in bottled water industries?
5. What recommendation would you make to Coca-Cola to improve its competitiveness in the global bottled water industry?


1. What are economic characteristics of the bottled water industry?

If we define the economic characteristics in term of macro environment, there is several ways that we can categorize as the follow;
Market size and growth rate
The bottled water industry has a high potential in growth rate and in the terms of sales volume or per capita consumption rate. For example, the United States’ capita consumption of bottled water lagged those of soft drinks by more than a 2:1 margin. In term of bottle water, the majority of sales volume has burden on single- serving PET containers than 5 or 1-2.5 gallon high density polyethylene containers which use for home or office. The single PET container has been satisfied by the customers because they are convenience and portable. So it could be purchased from a convenience store.

Number of rival
There were fierce competitions among the producers that have scale and scope of operations which were similar to each other. For instance, the Pepsi Co. and Coca Cola companies have developed the strategy and infrastructure, which are hard for the local sellers to complete with them. However, there were still many producers including new entrants that try to access the market and compete seriously with low price and differentiation- strategies among rival...


... middle of paper ...


... objects and customer regions. Do making a clear differentiation image between its soft drinks and bottled water. Because the consumers may believe that bottled water of Nestle sounds healthier than Coca-Cola brand since Nestle tend to emphasize their image on healthy food products. Then do market test for new taste, new packaging, or new innovation according to each regions, and especially for Europe, the company should launch the new one to replace Dasani image in order to seize their market shares. They may renew all nutrients and packaging. Finally Coca-Cola should continue its joint ventures with the regional companies in order to protect their products from barriers to entry both international trade restrictions and distribution channels. Furthermore, joint venture with local brand is a long term contract guarantee to make it easier for HOD to a specific region.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Organization Environment: Starbucks vs. The Competition

- ORGANIZATIONAL ENVIRONMENT Starbucks vs. Competition Organizational environment is defined as all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization (Daft, 2009). One organization that has faced environmental factors which required them to change their current organizational strategy, is the Starbucks Corporation. Starbucks Corporation is considered the top provider of premier coffee products in the world (St. Johns, 2007)....   [tags: Business Management ]

Strong Essays
1050 words (3 pages)

The Carbonated Soft Drink Industry And Competitive Strategy Of Coca Cola And Pepsi

- This analysis takes a look at the carbonated soft drink industry and competitive strategy of Coca-cola and Pepsi. This was a very attractive market at the time as Americans were consuming carbonated soft drinks more than any other beverage. Both companies needed to find ways to boost flagging domestic cola sales and generate diverse sources of revenue. Both firms modified their production strategies including their bottling, pricing, and brand strategies. They looked to emerging international markets to stimulate growth and broaden their brand portfolios to include noncarbonated beverages like tea, juice, sports drinks, and bottled water....   [tags: Coca-Cola, Soft drink, Brand, Cola]

Strong Essays
701 words (2 pages)

Bottled Water Industry : The World 's Most Attractive Beverage Categories

- According to the “Competition in the Bottled Water Industry in 2006 Case,” bottled water industry became the one of the world’s most attractive beverage categories, as more and more people began to focus on health and fitness. Consumers start realizing the need of proper hydration, and they began purchasing bottled water instead of drinking tap water, because they were worried about safety of tap water, which tasted like chemicals. Actually, tap water contained chemicals, such as chlorine and fluoride, which are harmful for human body; however, this problem was solved when the bottled water was brought to the market....   [tags: Drinking water, Water, Bottled water]

Strong Essays
1204 words (3.4 pages)

The Bottled Water Industry And A Profit Driven Business Worldwide Essay

- Bottled water is the other form of privatizing water and is a profit driven business worldwide. It is important to include bottled water in the same discussion as municipal water sources mainly in looking at how developed countries are handling water issues. For Europe and the United States, both have relatively safe water and the infrastructure, which provides water to all citizens compared to developing countries. The problem however for developed countries is the bottled water industry and the continual issues with expansion....   [tags: Drinking water, Bottled water]

Strong Essays
2063 words (5.9 pages)

GSK India Market Share Essay

- Health Food Drink Industry is a very sensitive market wherein companies participating in such markets can hardly differentiate their product offering as everyone presses on the same key features i.e Taller stronger and sharper. Then, how did GSK capture the majority of the market space i.e. 75% of market share is worth discussing. In such a market company needs to continuously build and bid on innovation to try and sustain in the market with regards to its ingredients which whether pertains to its promises or not is miles apart....   [tags: health food drink industry]

Strong Essays
792 words (2.3 pages)

Forms Of Industrial Organizations Essay example

- Forms of Industrial Organizations Based on production and selling environment economists group industries into market structures. There are four basic market structures namely: (1) pure competition, (2) monopoly, (3) oligopoly, and (4) monopolistic. Differentiating factors of the four markets include, ease of entrance or exit, the number of firms within the industry, and availability of substitutions. It is not uncommon for a market to begin as one type of structure and evolve into another. The following paper will discuss the four different market structures as well as explain the life cycle and progression of the All-Optical Notebook Computer Industry Pure Competition Monopoly Oligopoly...   [tags: Business Industry ]

Strong Essays
906 words (2.6 pages)

Essay about Bottled Water, The Consumer, And The Environmentalist

- Hannah Rosenblatt Haydee Smith Muir 40, Section A28 (811381) Synthesis Write: Final Draft 17 November, 2014 Bottled Water, the Consumer, and the Environmentalist Both Barnett 's “Business in a Bottle” and Gleick 's “Selling Bottled Water: The Modern Medicine Show” support the general claim that the creation and advancement of the bottled water industry has made an unnecessary commodity out of a naturally occurring resource, and is detrimental to human and environmental well-being. However, the authors justify this claim by operating under different frameworks: Barnett uses evidence demonstrating the exploitation and alteration of natural water sources by bottled water companies, viewi...   [tags: Water, Water resources, Bottled water]

Strong Essays
1910 words (5.5 pages)

The Bottled Water Industry And The Violation Of Human Rights On A Global Scale

- Aside from blatant wastefulness, the bottled water industry also contributes to climate change, pollution, and the violation of human rights on a global scale. Every ton of PET made for bottled water produces around three tons of carbon dioxide. In 2006, bottled water created over 2.5 million tons of CO2 emissions in the United States (Pacific Institute 2006). That number does not include the CO2 emissions that are involved with the transportation of bottled water, nor does it take into account the increase of consumption that has happened within the past ten years....   [tags: Bottled water, Drinking water, Water, Bottle]

Strong Essays
1366 words (3.9 pages)

Perfect Competition And Monopolistic Competition Essay

- Can you imagine the world with a limited amount of choices when it comes to purchasing different products and services. How does perfect competition and monopolistic competition differ and effect our buying power. As stated by Investopedia (2016), “Perfect competition is the opposite of a monopoly, in which only a single firm supplies a particular good or service, and that firm can charge whatever price it wants because consumers have no alternatives and it is difficult for would-be competitors to enter the marketplace (para 1)”....   [tags: Perfect competition, Monopoly, Smartphone]

Strong Essays
1633 words (4.7 pages)

The Effects Of Bottled Water On The Environment And Health Essay

- Every year $100 billion is spent on bottled water globally, when in many countries drinkable water out of the tap is readily available (McCutcheon, 2014). Why is this so. The bottled water industry uses perceptions based off of several factors to get consumers to buy into their products, such as safety/cleanliness, taste, healthiness and convince. Perception of these issues in relation to local water supply affects the consumer’s decision about whether or not they will purchase bottled water. If the consumer believes that their tap water is unacceptable for consumption, then they will feel compelled to purchase bottled water....   [tags: Drinking water, Bottled water, Spring, Aquifer]

Strong Essays
1110 words (3.2 pages)