1)Dominant economic features1) Market Size and 2) Scope of compétitive Growth Rate: rivalry :
3) Number of rivals : 5) Distribution channels :• Nestlè • wholesale clubs• Coca-Cola • supermarkets• Pepsi • discount stores• Groupe Danone • food store• Suntory Water Groups • supercenters 6) Pace of technological4) Number of buyers change. No one buyer accounts for a significant fraction of 7) Degree of product overall market demand. différentiation 8) Vertical integration
2) Drivers of change:• Increase in environmental concerns• Convenience and portability• The profit margins in the industry are very lucrative• To facilitate entry into carious parts of the globe many companies enter into strategic alliances
The threat of substitute product• Other type of drinks : Soft drink, milk, Tea, Soda• Innovative products like vitamin water and flavored water.Those products are more and more popular andthat’s why they can be considerate as a real threat. HARD!
The threat of the new entrant• Biggest competitors have the majority of the global market.• Only competitors that are able to provide important quantities of bottles water with a cheap price will be able to enter this market. DIFFICULT!
The bargaining power of suppliers• Due to a large number of existing suppliers : about 50 different companies in the USA. LOW!
The bargaining power of customers• Many channels : Food stores, mass store.• Consumer won’t change their consumption regarding the price because it’s a basic product. MEDIUM!
Intensity of competitive rivalry• Bottled water industry is a market with a limitated number of competitors as Nesle, Danone Coca Cola & PespiThere is an intense competition due to• Price• Type of products (health and fitness)
4) Keys success factors• Water is the world’s most attractive beverage categorie• Demand is increasing day by day in the bottle water industry• The impact of brand is important because of notoriety• People are always more interessted in health and fitness
• Water Improved the appearance of skin and give more energy• Purity of water is important for the health• Good convenience and portability of bottled water
6) Recommendations o Strengthen its presenceo Dominion by the costs in the country already occupiedo Concentrate on one market o Reduce production costso Differenciation o Innovation in localo The customer loyalty supplyo External growth
o Improve the worlwide présenceo Reduce production costs o Reducing Production Cost :o Market Domination : o Globalization and External Growtho Local Acquisitions and consumers loyalty o Developing an international Customer loyalty