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Porter’s five forces
 THREAT OF NEW ENTRY.
 SUPPLIER POWER.
 COMPETITIVE RIVALRY.
 BUYER POWER.
 THREAT OF SUBSTITUTION.
Threat to new entry - High

 Annual growth rate more than 38%.



 The fastest-growing and most attractive beverage category in

  the world.



 Large pool of buyers but no one accounts for a significant

  fraction of overall market demand.
Continued..
 Low investment at initial stage.



 Government policy



 Enhance waters offered higher margins.



 More number of substitute available in market.
Supplier power – Moderate to Low
 Bulk buying from supplier.
Manufacturer purchase bottle or raw data in a bulk quantity so it
increase the bargaining power of buyer.
 Low differentiate in raw material
Supplier not differentiate raw material of bottled water so they not
attract more buyer from the market and for this reason supplier
not bargain with buyer but try to provide raw data as per buyer need.
 PET Supplier
Govt has taken decision to use PET bottle only with the benefit
of recycling but due to there is a less supplier available in market,
the bargaining power of supplier is high
 Water Availability
There is a huge no of water supplier available in market so buyer
can bargain with supplier
Competitive rivalry- High
 COMPETITORS –
 Parle's Bisleri
 Coca Cola with its brand Kinley
 PepsiCo with its brand AquaFina
 Manikchand with its brand Oxyrich
 K.K.Beverages with its brand Kingfisher


 QUA Product Differentiation
– UV Technology safe and effective.
– does not add any chemicals
– no harmful byproducts
– High quality carbon block pre-filter
– improves taste & odour of water
Continued..
 Switching cost
 Switching cost for customer is nearer to zero in bottled
 water market and beverages industry.

 Low exit barrier
 Investment in bottled water technology is not that much
 high.
Buyer power- Moderate
 Generally water is viewed to be of equal quality. So,
    consumers view all the companies as the same.
   Purchased in low quantity-All Buyers are purchase in low
    quantity like 1 liter or 2 liter so they not bargain with
    manufacturer.
   Buyers included supermarkets, natural food stores, whole-
    seller, convenience stores and restaurants etc.
   Product Information - People do not have full data of all
    brands so they do not compare with other brands and bargain
    with dealers.
   Price sensitivity - When buyers are more price sensitive than
    it increase bargaining power of buyer.
Threat of substitution - High
 Close Substitute:
a)  Pouches water
b) Coconut water
c) Vending machines
d) Water purifier
 Far substitute:
a) Cold coffee
b) Tea
c) Milk and Buttermilk
d) Fruit juice
e) Carbonated soft drink
Qua mineral water

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Qua mineral water

  • 1.
  • 2. Porter’s five forces  THREAT OF NEW ENTRY.  SUPPLIER POWER.  COMPETITIVE RIVALRY.  BUYER POWER.  THREAT OF SUBSTITUTION.
  • 3. Threat to new entry - High  Annual growth rate more than 38%.  The fastest-growing and most attractive beverage category in the world.  Large pool of buyers but no one accounts for a significant fraction of overall market demand.
  • 4. Continued..  Low investment at initial stage.  Government policy  Enhance waters offered higher margins.  More number of substitute available in market.
  • 5. Supplier power – Moderate to Low  Bulk buying from supplier. Manufacturer purchase bottle or raw data in a bulk quantity so it increase the bargaining power of buyer.  Low differentiate in raw material Supplier not differentiate raw material of bottled water so they not attract more buyer from the market and for this reason supplier not bargain with buyer but try to provide raw data as per buyer need.  PET Supplier Govt has taken decision to use PET bottle only with the benefit of recycling but due to there is a less supplier available in market, the bargaining power of supplier is high  Water Availability There is a huge no of water supplier available in market so buyer can bargain with supplier
  • 6. Competitive rivalry- High  COMPETITORS –  Parle's Bisleri  Coca Cola with its brand Kinley  PepsiCo with its brand AquaFina  Manikchand with its brand Oxyrich  K.K.Beverages with its brand Kingfisher  QUA Product Differentiation – UV Technology safe and effective. – does not add any chemicals – no harmful byproducts – High quality carbon block pre-filter – improves taste & odour of water
  • 7. Continued..  Switching cost Switching cost for customer is nearer to zero in bottled water market and beverages industry.  Low exit barrier Investment in bottled water technology is not that much high.
  • 8. Buyer power- Moderate  Generally water is viewed to be of equal quality. So, consumers view all the companies as the same.  Purchased in low quantity-All Buyers are purchase in low quantity like 1 liter or 2 liter so they not bargain with manufacturer.  Buyers included supermarkets, natural food stores, whole- seller, convenience stores and restaurants etc.  Product Information - People do not have full data of all brands so they do not compare with other brands and bargain with dealers.  Price sensitivity - When buyers are more price sensitive than it increase bargaining power of buyer.
  • 9. Threat of substitution - High  Close Substitute: a) Pouches water b) Coconut water c) Vending machines d) Water purifier  Far substitute: a) Cold coffee b) Tea c) Milk and Buttermilk d) Fruit juice e) Carbonated soft drink