2. Porter’s five forces
THREAT OF NEW ENTRY.
SUPPLIER POWER.
COMPETITIVE RIVALRY.
BUYER POWER.
THREAT OF SUBSTITUTION.
3. Threat to new entry - High
Annual growth rate more than 38%.
The fastest-growing and most attractive beverage category in
the world.
Large pool of buyers but no one accounts for a significant
fraction of overall market demand.
4. Continued..
Low investment at initial stage.
Government policy
Enhance waters offered higher margins.
More number of substitute available in market.
5. Supplier power – Moderate to Low
Bulk buying from supplier.
Manufacturer purchase bottle or raw data in a bulk quantity so it
increase the bargaining power of buyer.
Low differentiate in raw material
Supplier not differentiate raw material of bottled water so they not
attract more buyer from the market and for this reason supplier
not bargain with buyer but try to provide raw data as per buyer need.
PET Supplier
Govt has taken decision to use PET bottle only with the benefit
of recycling but due to there is a less supplier available in market,
the bargaining power of supplier is high
Water Availability
There is a huge no of water supplier available in market so buyer
can bargain with supplier
6. Competitive rivalry- High
COMPETITORS –
Parle's Bisleri
Coca Cola with its brand Kinley
PepsiCo with its brand AquaFina
Manikchand with its brand Oxyrich
K.K.Beverages with its brand Kingfisher
QUA Product Differentiation
– UV Technology safe and effective.
– does not add any chemicals
– no harmful byproducts
– High quality carbon block pre-filter
– improves taste & odour of water
7. Continued..
Switching cost
Switching cost for customer is nearer to zero in bottled
water market and beverages industry.
Low exit barrier
Investment in bottled water technology is not that much
high.
8. Buyer power- Moderate
Generally water is viewed to be of equal quality. So,
consumers view all the companies as the same.
Purchased in low quantity-All Buyers are purchase in low
quantity like 1 liter or 2 liter so they not bargain with
manufacturer.
Buyers included supermarkets, natural food stores, whole-
seller, convenience stores and restaurants etc.
Product Information - People do not have full data of all
brands so they do not compare with other brands and bargain
with dealers.
Price sensitivity - When buyers are more price sensitive than
it increase bargaining power of buyer.
9. Threat of substitution - High
Close Substitute:
a) Pouches water
b) Coconut water
c) Vending machines
d) Water purifier
Far substitute:
a) Cold coffee
b) Tea
c) Milk and Buttermilk
d) Fruit juice
e) Carbonated soft drink