looja cwa:|a:i koll :o 1!kajuo|a: koll :o10i:s koll :o11Competition in the Bottled water lndustrv in 20060bjeotive O%|is asc a:alvsis |asicallv s|ows t|c cuc:-c:cc oi |ottlcc watc: i:cust:v. ciiic:c:t st:atc-ics|ci:- ta|c: |v t|:cc uai: couctito:s :lcsi.cocoacola.:cstlc a:c ot|c: scllc:s to sustai: i: ua:|ct cu:i:- c:ioc i:ou !000 to !00o.lc:c wc |avc also cxlai:cc t|c lo:tc:`s iivc io:cc uoccl lntroduotion Oo! |illio: |usi:css i: !00. accitio:al !0 |w !00. a:c !010Ou:itcc statcs t|c wo:lc la:-cst ua:|ct:i:ou 1999!00+ ..i:c:cascc |v t|c: i: to :a:| a:c u:itcc statcs a:c \cxicoOo:t:ollcc |v a icw iooc a:c |cvc:a-c coua:ics .%|:cc -ia:t couctito:s ocacola. lcsico. :cstlc..Ot:atc-ics . i::ovativc :ocuct va:iatio:. lowc:cc :iccs i: st:uctu:cc ua:|cts. acqui:i:- oi suallc: scllc:s .usc oi st:atc-ica-:ccuc:tmereenoe of bottled water industrvO:c:cascc iocus o: iit:css a:c |calt|Oaictv co:cc::s oi uu:icial c:i:|i:- watc:Olcctic o:t|c-o liicstvlcs oi Auc:ica: co:suuc:s. Oo:vc:ic:cc. u:itv a:c o:ta|ilitv oi |ottlcc watc:Ou:ovcc co:suuc: awa:c:css oi :ccc io: :oc: |vc:atio:Ou:ovcc t|c aca:a:cc oi s|i: a:c -ivc uo:c c:c:-vO|cuical tastc oi ta watc: i:cluci:- c|lo:i:c a:c ilu:oicct|at was a -:cat :o|lcu to u colc$01 Analvsis of Bottled water lndustrvOs1RING1Hs%|c liicstvlc oi colc is c|a:-i:-Dcua:c is i:c:casi:- cav |v cav i: t|c |ottlc Watc:.o:vc:ic:cc. u:itv a:c o:ta|ilitv ca: |c t|c st:c:-t|s oi |ottlcc watc:OWIAKNIssIs %|c lac| oi awa:c:css a:c t|c ovc:tv %|c lac| oi availa|ilitv i: t|c :cuotc a:cas is also t|c st:o:- :caso:OGPPGR1uNI1IIs lcolc a:c |ccoui:- uo:c |calt| co:scious

O1HRIA1s low l:t:v la::ic: lco:ouical u:cc:tai:tv!orter's live loroe ModelBottied Water IndustryIierce IovAverageNumerous Hard to enterlive loroes AnalvsisO1hreat o substitute product. lcalt|ic: a:c i::ovativc :ocucts. suc| as ilavo:cc watc:. :o: calo:ics watc:. a:c vitaui: acccc watc:. t|c: su|stitutc :ocucts a:c tca. coiicc. uil|. a:c |cc:. soit c:i:|.u|stitutc :ocucts |ccouc uo:c oula: a:c ca: |c co:sicc:cc as a t|:catO1hreat o the nev entrants . Ol:oiita|lc ua:|cts t|at viclc |i-| :ctu::s will c:aw ii:us. lut i: t|is casc. t|c |i--cst couctito:s |avc t|c uajo:itv oi t|c -lo|al ua:|ct. OA icw suall couctito: a:c caa|lc oi uai:tai: t|ci: co:suuc:s. Oust a couctito: w|o is a|lc to oiic: |i- qua:titics oi |ottlcc watc: at a low :icc is -oi:- to c:tc: t|is i:cust:vOVast |cvc:a-c cist:i|utio: svstcus oi o|c a:c lcsi c:a|lcs t|cu to |avc i:tiuatc :clatio:s|is wit| :ctail c|a::cls a:c woulc |c a|lc to ccic:c t|ci: ositio:s ciicctivclv1he bargaining pover o suppiiers. O%|c sulic:s to t|c |ottlcc watc: i:cust:v i:clucc uu:icial watc: svstcus. s:i:- oc:ato:s. |ottli:- cquiuc:t ua:uiactu:cs. ccio:izatio:. :cvc:sc osuosis. a:c iilt:atio: cquiuc:t ua:uiactu:cs.O\a:uiactu:cs oi ll% a:c lDll |ottlcs . la:-c |ottlc:s a|lc to u:c|asc |ottlcs as littlc as . cc:ts c: |ottlc.O Duc to la:-c :uu|c: oi cxisti:-ulic:s .|a:-ai:i:- owc: oi sulic:s is low.O1he bargaining pover o customers .O%|c :icc sc:sitivitv oi |uvc:s a:ou:c t|c -lo|c is |i- co:cc:: io: t|c lcaci:- scllc:s oi t|c i:cust:vOl:i:cilc |a::cls . o:vc:ic:cc sto:c. looc sto:cs. \ass uc:c|a:cisc:s. Vc:ci:- uac|i:cOo:suuc:s will :ot sto |uvi:- |ottlcc watc: just |ccausc a |i-| :icc. t|cv uav o:lv c|a:-c i:ou o:c |:a:c to a:ot|c: o: i: t|c |cst scc:a:io io:u o:c ilavo: to a:ot|c:. |ccausc |ottlcc watc: tocav is co:sicc:cc as a |asic :ocuct. o |a:-ai:i:- owc: oi |uvc:s is ucciuuO Intense o competition.%|c:c a:c a icw -lo|al couctito:s i: t|c i:cust:v. suc| as :cstlc Watc:s. G:ouDa:o:c. cococola.csico.O lic:cc couctitio: ouctc a--:cssivclv o: :icc \a|i:- ciiic:c:tiatio: i: ccvcloi:- :ocucts :iocusi:- o: |calt| a:c iit:csslottlcc watc:s scllc:s also :ccccc to |avc ciiicic:t cist:i|utio: svstcus to suc: ua:|ct\axiuizc t|c :uu|c:oi cclivc:ics a:c o:tiuc cclivc:ics c: c:ivc: si:cc cist:i|utio: i:cluccs |i-| iixcc costs%|c couctito:s i: t|c i:cust:v |avc :ot o:lv |ottlcc watc: |ut c:|a:ccc watc:s o: iu:ctio:al watc:s availa|lc i: cvc:v si:-lc ua:|ct.'alue ohain oomparsion for the bottled water operations of Nestle,pepsioo,andoooa-oolaNIs1II PIPsIcG cGcA-cGIAkl%Allk lkl llk Al.++ ..! .o.kctailc:`s ua:-i: !. 1.. 1.o%%lll%%llk klVl:ul..+9 .0! .1!lXll:l !.o! +..! +.o!Gk lkl% !.o !.9! !.0!ll%A \AkG: 10.+ 9.0 o..0RLU MARK1 $AR 0l B011LU A1R lNUu$1R lN 2006PepsicoAquaina s91o miiiionocacola Dasa:i !+ uillio::cstlc watc: lola:c s:i:- o+9 uillio::cstlcA::ow|cac .+o uillio::cstlc Dcc: la:| !.o uillio::vstal -cvsc: !!. uillio:za:|a::cstlc watc: !!o uillio:cc uou:tai: !0 uillio:lvia::cococola 1+. uillio:1op four u$A bottled water marketers 2003-2004RANK cGMPANY IIADING BRANDs200+ MARKI1 sHARI2001 MARKI1 sHARI1 :l%ll WA%lkllA:Dlk:G.Dllk lAkl.l \u:%A:+!.1 !9.1! AlA DAA:.lVA:.DA:::!1.9 !+.1! lll AQuAl:A 1!.o 1+..+ GkY%AlGlYlk.+ %llklkVA%l1. 1..!$trateeies of nestleO Wo:lc s lcaci:- scllc: wit| ua:|ct s|a:c oi 1.! i: !00.O +! ua:|ct s|a:c i: uA a:c !0 i: lukll O lowcost lcacc: i: u:itcc tatcs.O li-| sccc. ciiicic:t a:c vc:ticallvi:tc-:atcc ua:uiactu:i:- caa|ilitics O . |:a:cs i: 1!0 cou:t:ics i: !00+O t:atc-v was. to |cositio:cc |v u:c|asi:- suallc: :c-io:al |:a:cs. acqui:i:- |ottlcc watc: :ocucc:s a:c c:tc:i:- i:to joi:t vc:tu:cs.O: !00otwo -lo|al |:a:cs::cstlc u:c liic a:c aqua::cl.iivc i:tc::atio:al :cuiuu |:a:cs a:c o local |:a:csO l:|a:ccc watc:s suc| as i:uit ilavou:cc. t:aw|c::v ucl|a. co:t:cx lcuo: uc:i:-uc wc:c i::ovativc calo:ici:cc ilavo:s i:t:ocuccc i: !00o.Olac|a-i:- i::ovatio:s to ciiic:c:tiatc its |ottlcc watc: |:a:cs suc| as sill:ooi ca io: c|ilcsizcc |ottlcs. |u||lc s|acc |ottlc io: c|ilc:c:.O:cw ll% co:tai:c: was a:t oi st:atc-v to :cvitalizc t|c |:a:c i:tc:ccc to |cttc: uatc| t|c o: t|c -o liicstvlcs oi vou:- co:suuc:sOlouc a:c oiiicc cclivc:v w|ic| :ca:lv !0oi salcs i: u a:c Acquisitio:s |cl it to -:ow i:ou :o :csc:cc to lcaci:- ositio:.Oloval co:suuc: |ascO:cstlc is vc:v t:ustcc |:a:c a:c its :ocuct is co:sicc:cc oi |i-| qualitv wo:lcwicc.$trateeies bv Cooa-oolaODasa:i :c:catc a :cco-:iza|lc |:a:c |v i:vc:ti:- a: :auc t|at sou:cs :ci:cs|i:-. soot|i:-. a:c c:is:cssi:t:ocuccc i: 1999ODasa:i is u:iiicc watc: i:cluccs cou|i:atio: oi ua-:csiuu sul|atc. otassiuu c|lo:icc. a:c salt |cst att:i|utcs oi s:i:- watc:.Ouo:tcc |v !0 uillio: acvc:tisi:- |uc-ct i: !00. a:c was cist:i|utcc t|:ou-| all :ctail c|a::cls w|c:c co|c availa|lc.OVast cist:i|utio: svstcus a:c :c-otiatcc co:t:acts wit| u:ivc:sitics. so:ts. uacc it casv to ua|c Dasa:i availa|lc a:vw|c:c co|c |c u:c|ascc Oocacola`s ua:|cti:- cxc:tisc. vast u cist:i|utio: c|a::cls allowcc casa:i to |ccouc scco:c la:-cst |:a:c oi watc: i: uOWit| vast -lo|al cist:i|utio: t|cv also |avc |ottlc:s a:tiallv ow:cc a:ccoulctclv ow:cc |v cocacola t|at -ivcs t|cu cost ciicctiv:cssOocacola cxtc:ccc Dasa:i li:c i: !00oi:uit ilavou:cc:succcssiul. ilavo:cc watc: wit| li-|t ca:|o:atio:s wit| :o calo:ics. owc:acc:u:succssiulOoi:t vc:tu:c wit| Da:o:c i: !00! :oviccc co|c wit| |ottlcc watc: :ocucts at all :icc oi:ts.ODasa:iuc: uic :iccc watc:. lvia::cuiuu a:c Da::o:ciscou:t:iccc. %|is joi:t vc:tu:cwoulc allow t|c coua:v to :otcct Dasa:i`s :ca: :cuiuu :ici:-.Olut t|c t|:cc tic: st:atc-v iailcc i: souc :c-a:cs. o|c`st|:cc watc: |:a:cs |ac collcctivclv lost !.! ua:|ct s|a:c oi:ts w|ic| lcac to -:owt| oi :cstlc a:c souc :ivatc la|clO : ca:lv !00+. o|c |ac to wit|c:aw its c:ti:c stoc| oi Dasa:ii:ou t|c ua:|ct aitc: u:acccta|lc lcvcls oi |:ouatc was cctcctcc i: t|c watc: a:c t|cv iaccc a|a:co:uc:t oi Dasa:i |:a:c i: lu:ocO : !00o cocacola acqui:cc t|c talia: a:c Gc:ua: ui:c:al watc: coua:v a:c two lD watc: :ocucc:s i: !00oOocaola suo:ts :ca:lv 0 u|lic watc: :ojccts i: +0 cou:t:ics. i: a:t:c:s|i wit| suc| -:ous as Akl a:c t|c Wo:lc Wilcliic lu:cOusi:- :ccvclcc :csi: to ua|c lastic |ottlcs a:c :ccuci:- t|c |ottlc's wci-|t t:v to ui:iuizc t|c c:vi:o:uc:tal iuact oi |ottlcc watc: !epsi waters$trateeies bv !epsi-ooOlcst sclli:- |:a:c i: u:itcc statcs Aquaii:aOlcv st:c:-t|utilizatio: oi sauc watc: u:iiicatio: iacilitics t|at wc:c uscc to :ocucc soit c:i:|s.Ot:icc out all c|lo:i:c a:c u:lcasa:t sucll oi ta watc: w|ic| was a -:cat :o|lcu i: uOt|c: |:a:cs-at:o:acc :ocl iit:css. so|c liic watc: .a:c iu:ctio:al vc:sio:s ccvclocc a:ou:c custouc: tvc a:c liicstvlcsO l:ocl ilavo: a:c vitaui: c::ic|cc watc:|vsicallv activc co:suuc:s liic watc: io: iua-cc:ivc: co:suuc:sO Aquaii:a sa:|li:-:a zc:ocalo:ic. li-|tlv ca:|o:atcc cit:us. 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