Bottled Water Industry: Competition, Trends, and Strategies

1933 Words8 Pages
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...

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... 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.

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