Detailed Supply Chain Analysis of Bottled Water Market using SWOT

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Added on  2023/06/06

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AI Summary
This report provides a comprehensive analysis of the bottled water market, focusing on its supply chain dynamics within the Australian context. The study employs a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to evaluate both the internal and external environments of the market. It examines key factors such as consumer behavior, market trends, and the influence of economic, technological, political, and social forces. The report highlights the strengths of the bottled water market, including readily available markets, effective marketing strategies, customer loyalty, and efficient distribution networks. It also addresses weaknesses such as labor shortages, water supply management issues, market competition, high taxation, and health concerns related to bottled water. The analysis includes graphical representations of market consumption and sales trends, offering insights into the profitability and growth potential of the sector. The report concludes with recommendations for improving market strategies and supply chain efficiency, emphasizing the importance of balancing strengths and weaknesses to achieve sustainable growth and profitability.
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Supply chain analysis using SWOT analysis.
soft drinks(bottled water) .
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Executive summary
The main aim of this report is to give analysis on both external and internal environment for
the bottled water market.
SWOT analysis uses to determine the strength and weaknesses that exist within the
supplying organization and market as a whole.
Consumers are the major determiners on the growth of the market.to encourage a
development in the next half a decade there should be an introduction of a fixed market
price so as to increase the market level (Yuan, 2013 p.1-8).
The market for bottled water supply is among the top market that most of the investor
choose to launch in their business. This because of the availability of ready markets.
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Introduction
The bottled water market (soft drink) has been experiencing a great development in the
market making which has attracted most of the investors.
Bottled water is non-alcoholic beverage. Examples of non-alcoholic beverages
include; soft drinks, juice, coffee etc. (Yuan, 2013 p.1-8).
To determine the strength and weaknesses in bottled water markets various analyzing
method can be used such as SWOT analysis and porter's forces.
In this report, swot analysis is implemented to obtain the strengths and weaknesses of
bottled water markets. The report discusses the supply chain of the bottled water (soft
drinks) by expressing the advantages and challenges faced in the market.
The report also recommends the action need to improve markets of the product (Yuan,
2013 p.1-8).
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Description
Soft drinks market (bottled water) has obtained great celebrity in Australia with the rate
expected to improve by 3.3% on annual basis.
Australia obtains 14.4% of its revenue from so drinks markets (bottled water). Australia
bottled water markets involve the following major companies; Evian, Mountain
Franklin, Frantelle, Peat ridge and others.
The consumers hold the driving power of the market. To absorb the competition power
every company is upgrading on the technology and quality on the services as a way of
attracting more consumers.
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Continuation
The above graph shows the consumption of soft drinks from major companies in
Australia.
Mountain Franklin as shown it holds the biggest percentage in consumption level.
This is due to investment and experience the company has in the market over the
competitors.
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Daily water use in Australia
compared with other countries
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Continuation( graph-discussion)
From the graph it is observed that Australia is among the top countries where water
consumption rate is high.
This is one of the major reason why the bottled market recorded as the best in soft
drinks market.
When the level of the consumption is high ,the market environment is highly profitable.
with such observation the companies should make their supply chain more effective so
as to take advantage of the consumption rate.
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Comparison of sales market of product
between 2017 and 2018
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Continuation( graph-discussion)
From the graph it is showed that the rate of market sales of bottled water have been
experiencing a positive growth.
During 2017 the sales growth rate was within 3.5% an in 2018 (current year) the rate is
within 4.5%
The whole supply chain of bottled water can be said to be profitable to the investors
and the government income.
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The supply chain of soft drinks
Before a product of soft drinks (bottled water) reaches the consumers it goes through
various processes.
A source of raw material is identified.
The raw material of the bottled water product is row water from rivers, dams and
wells .
The packaging of the soft drink is determined where bottles are widely used.
After everything is ready manufacturing process of the product is undertaken.
The manufactured product is distributed to the retailers who then supply the product to
the consumers for consumption.
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Continuation
Supply chain diagram
Company
raw
material(ro
w water)
Bottle Water
manufacturing
process
bottler
distributer
customer
retailer
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SWOT Analysis Framework
1. Ready markets
The market for the soft drinks(bottled water) in the country is readily available as there is no
restriction as compared with other times of beverages such as alcohol. For example, alcohol
drinks are restricted to underage consumption.
Another issue that has improved the market's availability of bottled water is it do not affect the
human behaviors after consumption. For example, alcoholic drinks tend to affect the normality
of people leading to others conducting shameful action.
Fair and affordable price has made the market more available .
2. Fantastic marketing strategies
The marketing strategies that are implemented in this kind of market have really maintained the
strengths of the organization involved in the soft drinks market (Yuan, 2013 p.1-8).
The companies involved have wisely invested in online marketing advertisements forums which
have massively boosted the marketing environment.
Also most of the strategies implemented in this kind of market merge with the Government
regulation hence no restriction from the Australia government.
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