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Bottled Water Industry Analysis Essay

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The Bottled Water Industry

...Introduction Water forms an essential part of every human being. After air, water is the most important necessity for life. Water plays a number of functions for the body. It serves as the body’s transportation system, it acts as a lubricant, it regulates the body temperature etc. The eulogy for water is an unending thing. In fact, more than 2/3rd of the human body is made of water. The importance of water for human body can be well accessed from the fact that if the amount of water is our body is reduced by just 1-2%, we feel very thirsty. If it’s reduced by 5%, our skin will shrink and we will have difficulty moving our muscles and if it’s reduced by 10%, we will die. Moreover with this commodity being a human necessity it makes best sense to do business in. As a normal human being requires on an average needs 2-3 litres of water everyday and world population is more than on (growing at 2-3% annually), the business opportunity is humongous and the potential is largely untapped. The bottled water industry is one of the most thriving sectors in Bangladesh. The market is growing at a whopping rate of about 55 per cent annually and is expected to cross Rs. 1000-crore mark within the next couple of years. There are close to 150 bottled water brands in Bangladesh. Nearly 80 per cent of these are local brands. Bottled water became a product in Dhaka during the 1920's and developed rapidly. Consumers in the West are quality conscious and display brand loyalty. Bangladesh......

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Porter’s Five Forces Analysis for Airline Industry

...Porter’s Five Forces Analysis for Airline Industry Threat of entry The government imposes quite lot restrictions on the entrance of the airline industry. What’s more, the high cost and high early stages investment capital for purchasing airplanes are barriers of entry. Threat of substitutes The most threatening substitutes are traveling by trains and cars. Because of the high price of taking planes, many people choose to travel by trains or cars, especially short-distance trip. But it takes a long time for people to take trains or cars, so people tend to choose air when they will experience long-distance trip or when they want to save time. Therefore, the substitutes influence the industry a lot. Threat of powerful suppliers The government also imposes quite lot restrictions on suppliers. Therefore, there are not many companies have the rights to provide products for airline industry. Airline companies have few choices about suppliers, so the suppliers’ bargaining power is very strong. Threat of powerful buyers At most time, when people decided to travel by air, they do not have many choices, and it is very difficult for the buyers to unite to buy services. When sellers gives out the service standards and price, buyers have nothing to do but accept it. So the buyers’ bargaining power is quite weak. Threat of rivalry There are only several airlines in the market. In spite of most of them provide similar services, they share some differences in air routes. So, the......

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Bottled Water Industry

...The Bottled Water Industry and Its Impacts on Our Environment and Health Comparing with Tap Water in North America INTRODUCTION The world nowadays has a rapid increase in population, thus it leads to a drastic demand for water resources. However, in reality, there is only 2.5% of the Earth’s water is freshwater, and 98.8% of them is still in ice and groundwater (Peter H. Gleic, 1993). The water resources are distributed unevenly due to the geographic locations. There are about 884 million people do not have access to clean and safe water. (World Health Organization, 2012). At the meantime, studies shows that limited availability of safe drinking water, and growing awareness among people to safeguard their health using bottled water, the bottled water industries boomed over those developed countries (Anisur Rahman, 2007). From 2001 to 2011, the United States alone had produced 5,185.3 millions of gallons of water to 9,107.3 millions of gallons of water, and had an increasing revenues from 6,808.4 millions of dollars to 11,083.8 millions of dollars (Beverage Marketing Corporation, 2006). As the bottled water market grows mature, it accounts for 1% of total GDP of the United States and Canada respectively in 2011. This paper is aimed at critically examining the overall bottled water production and its side effects on human health and environment in North America. It is organized as follows: it discusses where the water from and how it was processed and its affects on......

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Bottled Water Industry

...Bottled Water Case #1. Some key economic characteristics of the bottled water industry include its attractiveness to the market. The expected growth rate continues to rise and that makes it an opportunity for those willing to break into the market. The population is a key economic factor because they are becoming more conscientious of drinking water that had been provided by the municipalities, there are also concerns for the amount of sugar in soft drinks, so these are some of the reasons they are turning towards the bottled water industry. Bottled water is a more convenient way to a healthy drink readily available and its popularity continues to grow around the globe. This industry has an economic growth rate predicted at annual rates of 20% or more, and this makes the industry profitability rates continue to grow in the billions. The bottled water industry is highly competitive and most of the top contenders are soft drink companies that got into the market when they started seeing a consumer changeover to bottled water. The gain shelf space at the grocery markets, the sellers of bottled water have to compete aggressively to offer the lowest prices to distributers. Supermarkets and discount outlets were able to force the industry to pay slotting fees while also forcing them to lower their prices. Some retailers were even willing to offer rebates for shelf space in convenience stores. #2 a. Suppliers—plastic bottle producers, water treatment facilities,......

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Porter's Five Forces a Model for Industry Analysis

...Porter's Five Forces A MODEL FOR INDUSTRY ANALYSIS The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. Diagram of Porter's 5 Forces SUPPLIER POWER Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry BARRIERS TO ENTRY Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation Proprietary products DEGREE OF RIVALRY -Exit barriers -Industry concentration -Fixed costs/Value added -Industry growth -Intermittent overcapacity -Product differences -Switching costs -Brand identity -Diversity of rivals -Corporate stakes THREAT OF SUBSTITUTES -Switching costs -Buyer inclination to Substitute -Price-performance......

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Health Industry 5 Forces Analysis

...The Health Club Industry This case provides an opportunity to practice analyzing the industry environment and how it might influence the strategic issues facing a firm. In essence, any industry analysis requires us to think about how broadly we should define the scope of the industry. Please be sure to identify the boundary of the industry. In preparing your case for class discussion, please ensure you have read chapter two from Dess Lumpkin and Eisner, 2012, which is available on Blackboard. Further detail is available in Porter, M.E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86 (1), 78-93, which can be found via the library catalogue. Please focus your notes on trying to apply each of the five forces mentioned in this article to the case study. Look at what contributes to each of the five forces and try to identify or interpret data and evidence from the case to make a judgment about each of these. Avoid merely describing the case by ensuring you use the model as a framework for analysis; then for each component of the model, evaluate whether that ‘force’ would present difficulty for a firm competing in the industry. Finally, you should consider what the framework as a whole tells us about the industry and implications for firms. You may use the worksheet below to help you structure your notes if you wish. Please note: in real life, as in the case, we often don’t have full information so have to make ‘best assessments’ based on......

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Coca-Cola Porter's 5 Forces Analysis

...Bui Thi Huong Giang – ID# 442309 Nguyen My Hanh – ID# 442321 Pham Tra My – ID# 442329 PORTER’S FIVE FORCES INDUSTRY ANALYSIS COCA-COLA COMPANY 1. Threat of New Entrants: Medium - Coca-Cola is considered not only a beverage company but also a brand, so they own a significant market share providing Coca-Cola the ability to earn economy of scale that help maintain their total costs at a minimum level, which will create a quite difficult barrier for new beverages to enter the market. - As Coca-Cola has been founded and developed for a very long time, and now their products are considered to be one of the most famous and popular beverages around the world. With a huge number of Coca-Cola loyal customers who are not very likely to try a new brand, it will make things very hard for new businesses to enter the market. - As the prices of products are quite similar, the entrant of new competitors coming into the beverage industry are relatively easy because there is no consumer switching cost, consumers will not have to bear any additional cost when they switch to a new products, which will level the playing field and bring worries to Coca-Cola. 2. Threats of Substitute Products: High - As the prices of beverage products from different companies are at the same level so with the same amount of money customers pay for a Coca-Cola drink, they will have numerous other choices such as: Pepsi, Mountain Dew, 7Up, Dr. Pepper, or other types of drinks like Starbucks,......

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Porter's Five Forces a Model for Industry Analysis

...12/6/2014 Porter's Five Forces  QuickMBA / Strategy / Porter's 5 Forces Porter's Five Forces A MODEL FOR INDUSTRY ANALYSIS The model of pure competition implies that risk­adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. Diagram of Porter's 5 Forces SUPPLIER POWER  Supplier concentration  Importance of volume to supplier  Differentiation of inputs  Impact of inputs on cost or differentiation  Switching costs of firms in the industry  Presence of substitute inputs  Threat of forward integration  Cost relative to total purchases in industry     THREAT OF NEW ENTRANTS  Barriers to Entry  Absolute cost advantages  Proprietary learning curve  Access to inputs  Government policy  Economies of scale  Capital requirements  Brand identity  Switching costs  Access to distribution  Expected retaliation  Proprietary products THREAT OF SUBSTITUTES  ­Switching costs  ­Buyer inclination to  substitute  ­Price­performance  trade­off of substitutes BUYER POWER  Bargaining leverage  Buyer volume ......

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A Porter's 5 Forces on Industries

...Structural analysis of an industry is a valuable tool that can be used as a primary determinant of a firm's long-term profitability. Understanding the dynamics of competitive forces can provide insight into the attractiveness of an industry and the potential for returns on capital. Michael Porter, a Harvard Business School professor, has developed a framework for understanding an industry's structure. Porter's analysis is widely taught in business schools and commonly used by analysts. Porter's book, Competitive Strategy, provides an excellent, readable resource for understanding the impact of competitive forces on an industry. According to Porter, the five competitive forces affecting an industry are: threat of entry, competitive rivalry, bargaining power of suppliers, threat of substitutes, and the bargaining power of buyers. Let's use the airline industry as an example of how an analyst may interpret the competitive forces that affect an industry. Threat of Entry The threat of new entrants presents the possibility that new firms will enter the industry and diminish industry returns by passing along value to buyers in the form of lower prices and raising the cost of competition. Factors that determine the threat of entry include capital requirements, economies of scale, switching costs, and brand value. In the airline industry, access to capital is plentiful. Banks extend credit to airline carriers, and the debt and equity markets provide alternatives for raising......

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Porter’s Five Forces Analysis of the Fast Food Industry

...Porter’s Five Forces Analysis of the Fast Food Industry Complete a Porter's Five Forces Analysis of the fast food industry and for each of the 4 generic strategies, identify one restaurant that you believe is employing that generic strategy. According to Hoover's Fast Food and Quickservice Restaurant Report, Fast food restaurants make up one of the largest food industry segments with more than 200,000 restaurants in the US. Fast food franchises are known for their low cost and high-speed products served to go as well as for a quick on-site consumption. Consumers are attracted to the idea of standardized menus and familiar meals in each location. Michael Porter’s model discussed below will help us identify five key competitive forces to analyze the fast food industry environment. The threat of entrants - High Entry barriers into the fast food industry seem to be low because of the relatively low capital requirements to start a new restaurant. New entrants are not in need to possess proprietary technology to be able to compete with already established restaurants or franchises. However, the fast food industry is dominated by globally recognized chains with high brand awareness and brand loyalty like McDonald’s, Burger King, KFC, Pizza Hut and etc. Established fast food restaurants have numerous advantages in product technologies, easy access to ingredients and supplies, favorable locations, successful marketing, and experience. While these disadvantages can seem as a......

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Review on Myanmar Bottled Water by Porter Five Forces

...Review on Myanmar Bottled Water Industry with Porter’s Five Forces Review on Myanmar Bottled Water Industry with Porter’s Five Forces Introduction Bottled drinking water used to be a prestige product till 1990s in Myanmar. Then, the use of bottled water has grown considerably since factories were first set up in the mid-1990s. According to Myanmar Food and Drug Administration (FDA), there are 657 bottled water factories in 2013 which were rose form 320 factories in 2008. Bottled water culture has penetrated even into rural areas of Myanmar where majority of people previously held the view that bottled water was a waste of money. It is due to increasing urbanization, limited time to boil tap water, increasing suppliers and better delivery, convenience and portability. Myanmar bottled drinking water industry is currently dominated by Alpine which has 65% market share, according to the company reports. Analysis with Porter’s Five Forces An industry's competitive dynamics and profitability can be deducted by analyzing with Porter's Five Forces. (1). Rivalry among existing competitors Even though, Alpine has dominated the market, competition among second-tier brands such as Oasis, PMG, KTM , ICE, Sampar Oo, Max'2'0, Imperial Jade, KA is high. As bottled water has become a commodity-like product, customer......

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Porter's 5 Forces Analysis of the Bottled Water Industry

...The Bottled Water Industry Threat of entry of new competitors is low. Firstly, the competitors that currently exist are large, dominating companies who already own a huge market share of the industry. New entrants attempting to enter the market will have compete with established brands such as Coca-Cola, PepsiCo, and Nestle. These brands have decades of experience in the food & beverage industry, have developed brand recognition & loyalty and have achieved low-cost production and distribution capabilities that cannot be easily matched. Secondly, it is expensive to initially develop the infrastructure to produce the product. The case states that prices for bottle-filling lines range from $125,000 to over $100 million, not to mention the costs associated with “source certification, road grading, and installation of pumping equipment …” which require approximately $300,000 worth of investment. Threat of substitute products/services is high. Numerous bottled and non-bottled products that can easily substitute bottled water. The main factor that differentiates bottled water from other soft drinks is that it caters to a health-conscious market because it has no sugar and no calories. However, today, there are several healthy soft drinks that are ‘zero-sugar added’, ‘zero-calorie’ alternatives to water. Coke zero, crystal light powders, diet sodas, zero-calorie energy drinks, etc. are just some examples. Tap water is also a substitute product because many people simply trust......

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Bottled Water Industry

...Mark Hancock Environmental Economics Bottled Water Environmental and Economical Effects Introduction Since the early 1990’s American’s have been consuming large amounts of bottled water. Most American’s don’t realize the effects of the bottled water industry on the environment or on their wallet. Individuals believe that bottled water is more pure and of a higher quality than that of their conventional tap water. In reality this is false. We as a country are wasting money on bottled water and harming the environment in the process. Without a change of consumption habits our environment will see some dramatic changes. This is an important environmental and economical issue that will effect future generations as well as the current. Brief History Bottled water has become a part of many Americans life. Perrier started this trend with their introduction of bottled water in the early 1980’s. Ever since the early 1990’s when Coke and Pepsi got into the bottle water market because they saw their market share for soda declining Americans have been consuming bottled water at an alarming rate. These companies tried to glamorize their product saying it will make you skinny and healthy and associating it with big name celebrities and athletes. They stated that they were not in competition tap water because they provided a product that was portable, convenient and pure. In 2007 it was an 11.35 billion dollar business. The American people certainly bought into......

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Banking Industry 5 Force Analysis

...threat to the banking industry, but one major factor affecting the power of buyers is relatively high switching costs. If a person has a mortgage, car loan, credit card, checking account and mutual funds with one particular bank, it can be extremely tough for that person to switch to another bank. In an attempt to lure in customers, banks try to lower the price of switching, but many people would still rather stick with their current bank. On the other hand, large corporate clients have banks wrapped around their little fingers. Financial institutions - by offering better exchange rates, more services, and exposure to foreign capital markets - work extremely hard to get high-margin corporate clients. 4. Availability of Substitutes. As you can probably imagine, there are plenty of substitutes in the banking industry. Banks offer a suite of services over and above taking deposits and lending money, but whether it is insurance, mutual funds or fixed income securities, chances are there is a non-banking financial services company that can offer similar services. On the lending side of the business, banks are seeing competition rise from unconventional companies. Sony (NYSE: SNE), General Motors (NYSE:GM) and Microsoft (Nasdaq:MSFT) all offer preferred financing to customers who buy big ticket items. If car companies are offering 0% financing, why would anyone want to get a car loan from the bank and pay 5-10% interest? 5. Competitive Rivalry. The banking industry is highly......

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Banking Industry 5 Force Analysis

...بانکی که در ایران تاسیس شد « بانک جدید شرق » بود که مرکزش در لندن و حوزه عملیاتیش مناطق جنوبی آسیا بود این بانک بدون تحصیل هیچگونه امتیازی در سال 1266 شمسی (1888 میلادی ) در شمال شرقی میدان توپخانه در محل بانک بازرگانی ( تجارت فعلی ) شروع به فعالیت کرد و برای جلب مشتریان در شروع فعالیت به حسابجاری معادل 2/5% و به حساب سپرده های ثابت به مدت 6ماه 4% و یکسال 6% سود می داد.بانک با این اقدام خود در بازار پولی 12% از نرخ بهره را پایین آورد و برای اولین بار اقدام به انتشار نوعی پول کاغذی به صورت حواله عهده خرانه بانک برای مبالغ بیش از 5 قران و قابل پرداخت در وجه حامل نمود و در سال 1267 در مقابل دریافت 20000 لیره انگلیسی کلیه شعب و اثاثیه بانک را به بانک شاهی واگذار نمود . اهداف و وظایف بانک در آغاز فعالیت بانکها چهار وظیفه اساسی داشتند : 1- تشکیل انواع پول ها متعلق به کشور های مختلف جهان در سیستم فلزی ( طلا و نقره ) 2-تعیین وزن و عیار هر پول 3-تعیین نسبت برابری پول ها برای مبادله 4-نگهداری پول های فلزی اشخاص ( طلا و نقره ) در محل های امن وظائف و خدمات بانک های تجاری ( خصوصی یا دولتی ) باستثنا بانکهای تخصصی بصورت ساده بقرار زیر است : 1- قبول سپرده ( دیداری _ مدت دار ) یا تجهیز منابع پولی 2- ایجاد تسهیلات ( وام _ اعتبار ) 3- خرید و فروش فلزات قیمیتی 4- اجاره صندوق امانات 5- نقل و انتقال پول در داخل یا خارج از کشور 6- نگاهداری و انجام امور مربوط به اوراق و اسناد بهادار 7- انجام عملیات بورس 8- صدور ضمانت نامه بانکی 9- تنزیل اوراق تجارتی 10- انجام معاملات ارزی( خرید و فروش ) 11- خرید و فروش سهام و اوراق قرضه و اسناد خزانه ( عملیات برس) 12- گشایش اعتبارات......

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...Maldives: water shortage hits 12 islands, one family spending 85% of income on bottledwater Posted on March 20, 2009 by dietvorst | 2 Comments The shortage of potable water on some islands in the Maldives has been described as “serious” by the national disaster management centre (NDMC). There are currently 12 islands which have been facing water shortages since mid-February, according to Moosa Ali Kaleyfaan, deputy director general of the NDMC. The NDMC has supplied 763 tons of water to eight islands, but four more islands [...] are in desperate need of water, he said. “The main reason is it hasn’t rained for a long time it’s the dry season,” said Moosa. “Even more islands are believed to face this problem.” The department of meteorology has forecast the dry season will continue until June [2009]. The NDMC has spent an estimated US$60,000 to supply water to the 12 islands. “I am very upset with the government because we need water,” said 42-year old Jameela Aboobakuru from Gaafaru. “We ran out of water, so we borrowed water from our brother. When he ran out of water we started buying bottledwater imported from Male’.” She said her 12-member family was spending US$22 a day to buy bottledwater for drinking and cooking; their daily income, she...