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Competition in the Bottled Water Industry in 2006 - Essay Example
Pages 3 (753 words)
Competition in the Bottled Water Industry in 2006: A Case Analysis Water is an important necessity of life for humans. However, the drinking-water needs of people are different. Additionally, the physical activities of people, and their culture determine their drinking-water needs…
The bottled water industry has expansively grown over the years. In the US, people consume billions of bottles of water, each week. On the average, the American population use close to $16 billion dollars on bottled water. It is expected that by the year 2020, the industry will account for $148 billion, from the $70 billion in 2005. The growth rate of the bottled water industry is remains positive, because most companies are increasingly shifting from bulk productions to bottled water (McEachern 130). Here, there are different competitors, who compete to be the best in the market. The key competitors, Nestle, Pepsi, Coca Cola, and Groupe Danone have developed effective strategies, which have made them to remain key players in the industry. Therefore, it is challenging for local sellers to compete with them. There are new entrants, and these introduce lower prices in order to compete favorably. A new trend in the bottled water industry is the production of the “enhanced waters.” This are highly priced, thus, more profits for producing companies. The bottled water industry faced a high threat of substitute products. These mostly include the healthier products. Flavored water, vitamin added water, and non-calories water is the key substitute products of bottled water. ...
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