Good Example Of Cooroy Mountain Sring Water Competitive Advantage Case Study
International Strategic Management
Cooroy Mountain Spring Water is a certified bottler of Australasian Bottled Water Institute (ABWI). Cooroy Moutain is rewarded by top bottling plant and order of excellence throughout 2001 to 2004. Cooroy use natural spring of water and, spring water passes through various series of UV filtration and carbon filter to achieve 100 percent germs free water. Cooroy generate twenty five million liters of natural spring water annually. Cooroy present its product in different sizes for different market segments, which includes retail, home & office supply and agreement filling. Moreover Cooroy supports local and national events, include Queensland Garden aggregation. All these competencies provide Cooroy a competitive edge and make cooroy better than its competitor. According to the online survey 32% of the respondents drinking bottled water because of believe that it absolutely healthier than substitutes. Cooroy is a big food and beverages industry and have a much better position of product placement then others. Cooroy also earn revenue through agreement filling through supply the merchandise, printing and attaching the label. Cooroy have a benefit as they are selling natural spring water whereas the other companies are using tap water which is harmful. Cooroy have an advantage of selling natural bottled water which is healthy as compare to tap water (King, Mike, 2008).
Cooroy Mountain Sring Water should expand Globally
Cooroy Mountain Spring Water must expand globally as they sell 100 percent natural spring water. Global trends about health living has produced a munificent atmosphere, which increase the demand of natural bottled water. Tap water has chemical elements in it whereas spring water has no chemical elements (Mike, 2008). Cooroy Mountain should expand globally because of its various advantages. The bottled water marketplace continuously grows since 2004 and 2005. The Australians market is mainly a spring water market. The HOD market of Australia have a possible chance of growth, in the same way New Zealand HOD market have a huge future possible chance of growth. Cooroy have a chance to start out from New Zealand. Due to this, there is an intense competition between suppliers of water but it’s not seemed to be negatively affecting the Cooroy Mountain. There are some environmental chances for the Cooroy Mountain to expand globally, which include poor supply of water quality. Cooroy can expand globally as Australian spring water known globally as being of top quality and give an opportunity to export for other Australian spring water companies like Cooroy.
Cooroy Moutain Spring Water choose as potential markets in US, China, Italy and New Zealand
Bottled water is the top-growing beverage category globally, as it is expanded from a tap water substitute to the beverage field (Lenzner, 1997). Bottled water could be a significant competitive market therefore firms need to develop diverse marketing strategies according to that specific country. The US, china, Italy and New Zealand are the largest consumer markets for bottled water in the world, In the United States, bottled water is regulated the Food and Drug Administration (FDA) standardize bottled water. Bottled water consumption is higher in Italy than in other countries, with consumption of up to 40 liters per person. Italy consumes 13o liters from retail outlets and US consume 50 liters. In US mineral water brands has grown up exponentially. Consumption of bottled water in China has grown a lot and China was the 9th largest buyer of bottled water in 1997 (Hamel, 1991).
China moved up and become the 3rd largest bottled water consuming country after that. In New Zealand bottled water is regulated by Food Standard Australia New Zealand must act in accordance with the food act 1981. In US and New Zealand HOD market has a huge potential and Cooroy Mountain should adopt various strategies for each country such as approaching new markets by holding and developing partnership with regional brands, expanding new bottle range from a round shape to a square and curvy shape as it would increase the packing efficiency and help to make it appealing. They should also go for adding rain water merchandises to its range (King, Mike, 2008).
Strategic Group of Bottled Water Industry in Austraila
In Australia all bottled companies need to meet the standard of Australasian Bottled Water Institution (ABWI) so that companies can have an ABWI licensed Bottler logo on their product. In Australia bottlers tend to focus on either the bulk water market (home and office distribution) and the personal market (individual and table serves). Cooroy is the one of the top bottled companies, who is working in personal as well as bulk water. In Australia the Neverfail and Peats Rige are the leaders of wrap bottles and containers of ten liters or big whereas the Latter group wrap cup sizes among one hundered & ten milliliter and three hundered & thirty milliliter and bottles between four hundered milliliter and two liters. The most important brands of Australia include Frantelle, Mount Franklin, Summit, Pump, and Cool Ridge. In Australia there are more than one thousand water brands and a lot of these brands hold by food and beverages companies. The industry demonstrates a good level of market share attractiveness. In industry the best corporations are Coca-Cola and Asahi Holdings and reported much more than 70 percent of industry revenue through 2013-2014 and represent about 85 percent of the amount with 50 percent and 36 percent respectively. (Lenzer, 1997)
Macro Environmental trends for bottled water industry in Austraila & possible scenarios for Cooroy Moutain Success
The use of social network, electronic equipments and worldwide communication is quickly increasing with the ever changing trends. the spring water industry is exaggerated by macro factors of the Competition as corporations try hard to sustain their position. The demand of drinking a lot of bottle water will continuously increase within the coming time. This growing market is price effective for variety of corporations, and lots of community able to gain jobs. The living styles have a vital role in environment. Citizen of U.S are worried about their health and lifestyle. Buyers knowledge of health issues arising from fleshiness and inactive lifestyles represent a heavy risk to the carbonated drinks sector (Rugman, Hodgetts, 1995).
Macro ecosystem have a positive image and support within the growth of Cooroy Mountain Spring Water. Firstly Cooroy Mountain need creativity in their merchandise. The cooroy Mountain Spring Water needs to identify the need and want of their consumer and they must keep up with ever changing development in market. Secondly Cooroy Mountain must maintain the taste of the merchandise as it’s a key source for achievemnt and through this Cooroy will able to create a brand loyalty for bottled water. Most customers of bottled water use a particular merchandise and hardly opt for sanother product. Cooroy Moutain can attract a lot of buyers by having a good brand image and thirdly they have to pocessess distribution channels to continue their growth and for committing mass purchase that will ultimately scale back their prices (Mary, 2010).
Mary K. Muth., 2010. Addressing the Obesity Challenge. Available Through: //www.choicesmagazine.org/
King, Mike, 2008. Global Industry Guide Bottled Water Research Report on Companies and Markets. Available Through: http://www.pr-inside.com
Lenzer, R., 1997, October, 20. A monster beverage event. Available Through: http://www.forbes.com
Hamel, G., 1991. Competition for competence and interpartner learning within international strategic alliances. Strategic management journal, 12(S1), 83-103.
Stahl, M. J., & Grigsby, D. W., 1997. Strategic management: total quality and global competition. UK: Wiley.
Rugman, A. M., & Hodgetts, R. M., 1995. International business: A strategic management approach. New York: McGraw-Hill.