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The Bottled Water Industry: A Strategic Business Analysis - Essay Example

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A PEST analysis is conducted int is paper to demonstrate the state of the Bottled water industry showing the competitive positions of the top five players in the US market. The details reveal that PEST factors have been very favorable to the industry  …
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The Bottled Water Industry: A Strategic Business Analysis
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Download file to see previous pages Despite the recession from 1989 to 1993, a vast number of social and economic factors have continued to drive the bottled water market forward. These include the approval and acceptance of buying water. From the late 1980s and through the 1990s this has made the drinking of bottled water a more normal activity, instead of being viewed as exclusive or trendy. Besides changes in work pattern and lifestyles have also benefited the market. The tendency of remaining away from family mealtimes and the drift towards individuals eating when convenient to them has become normal. This is the result of the increasing numbers of working women that has led to significant growth in the need for convenience.
Further, redundancies and growth of leaner companies with fewer employees have resulted in an increase in working lunches. This has fostered the takeaway foods and drinks, at the expense of restaurants. However, the main driver has been the ongoing interest in health and fitness, aided by the proactive media, which has especially endured younger females to buy and drink bottled water. Bottled Water companies very often use sport and fitness related images in their promotions to augment this health consciousness. This health factor has been also highlighted by occasional drinking water pollution incidents (e.g. chemical spills, leaking of fertilizers, etc. into rivers) thereby increasing the numbers of people who turn to drink bottled water. The weather is undoubtedly an important factor in market growth. With the increase in hot spells due to global warming sales of bottled water increases substantially.
As a consequence, the bottled water market has been showing strong volume and value growth. There is also a significant change in its segmentation as people from all groups are turning towards it for different reasons.  ...Download file to see next pagesRead More
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