bottled water case
Bottled Water Case: Industrial Evolution
1. Describe the bottled water industry as presented in the case
a. Size in sales: In 2001, bottled water was among the world’s most attractive beverage categories, with global sales exceeding 32 billion gallons and annual growth averaging nearly 9 percent between 1996 and 2001.
b. Projected growth: U.S. per capita consumption had grown to nearly 20 gallons a year by 2001 and was expected to grow to 26 gallons a year by 2005
c. Number of Competitors: Both the global and U.S. bottled water markets had become dominated by a few international food and beverage producers like Coca-Cola, PepsiCo, Nestlé, and Groupe Danone, but they also included many small regional sellers that were required to develop either low-cost production and distribution capabilities or differentiation strategies keyed to some unique product attributes.
d. Size of competitors:
e. Other? The next area to be examined is the power of suppliers.
2. Describe the bottle water industry in its present state
a. Size in sales: Over half of all Americans (54 percent) drink bottled water, and about 36 percent of us imbibe regularly
b. Projected growth: The bottled water industry's rapid growth is surprising in light of the retail price of bottled water: It costs from 240 to over 10,000 times more per gallon to purchase bottled water than it does to purchase a gallon of average tap water.
c. Number of Competitors: Some of the major players profiled in the report are Nestle Waters, Groupe Danone, The Coca- Cola Company, PepsiCo Inc., Hangzhou Wahaha Group Co., Ltd., Icelandic Water Holdings ehf. and Mountain Valley Spring Company, LLC.
d. Size of competitors:
e. Other: Another part of evaluating the threat of new entrants is how the other companies already established in the industry will react to you trying to enter into their territory.
3. Describe the macroenvironment as it affects the bottled water industry. Address the following components
1. Describe the bottled water industry as presented in the case
a. Size in sales: In 2001, bottled water was among the world’s most attractive beverage categories, with global sales exceeding 32 billion gallons and annual growth averaging nearly 9 percent between 1996 and 2001.
b. Projected growth: U.S. per capita consumption had grown to nearly 20 gallons a year by 2001 and was expected to grow to 26 gallons a year by 2005
c. Number of Competitors: Both the global and U.S. bottled water markets had become dominated by a few international food and beverage producers like Coca-Cola, PepsiCo, Nestlé, and Groupe Danone, but they also included many small regional sellers that were required to develop either low-cost production and distribution capabilities or differentiation strategies keyed to some unique product attributes.
d. Size of competitors:
e. Other? The next area to be examined is the power of suppliers.
2. Describe the bottle water industry in its present state
a. Size in sales: Over half of all Americans (54 percent) drink bottled water, and about 36 percent of us imbibe regularly
b. Projected growth: The bottled water industry's rapid growth is surprising in light of the retail price of bottled water: It costs from 240 to over 10,000 times more per gallon to purchase bottled water than it does to purchase a gallon of average tap water.
c. Number of Competitors: Some of the major players profiled in the report are Nestle Waters, Groupe Danone, The Coca- Cola Company, PepsiCo Inc., Hangzhou Wahaha Group Co., Ltd., Icelandic Water Holdings ehf. and Mountain Valley Spring Company, LLC.
d. Size of competitors:
e. Other: Another part of evaluating the threat of new entrants is how the other companies already established in the industry will react to you trying to enter into their territory.
3. Describe the macroenvironment as it affects the bottled water industry. Address the following components