Use Porters five forces model to assess the attractiveness of the bottled water industry in South Africa

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Marketing Assignment

Bottled water of South Africa

Authorised by:                                Mr. V. Hau-Yoon

Subject:                                 Marketing

Student Name:                                Craig Mackenzie

Student Number:                         207048081

Date:                                24 April 2012

Table of contents

Introduction                                                                                        1

Buyer power                                                                                        1

Supplier power                                                                                2

Threat of new entrants                                                                        2

Threat of substitutes                                                                        3

Degree of rivalry                                                                                3

Conclusion                                                                                        4

Reference list

Question:

Use Porter’s five forces model to assess the attractiveness of the bottled water industry in South Africa.

Introduction:

What is bottled water?

Bottled water is defined as any form of water that is bottled in a sealed container and comes in a variety of forms and sizes (SANBWA 2012).

The bottle water industry of South Africa is a ever growing market, in 1997 an association called the South African Bottled water Association or SANBWA for short was formed. The association was formed to set industry safety, standards for health, and the pleasure of the consumer (SANBWA 2012).

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For the purpose of this study at hand I will be comparing the bottled water industry within South Africa according to Michael Porters five forces namely: Buyer Power, Supplier power, Threat of new entrants, Threat of substitutes and degree of Rivalry (Morningstar 2012).

Buyer Power:

Buyer power is defined as the power that the buyers of a product have on the price of the product. For instance a single person may have no effect on the buyer power of a brand, but a large retail store such as Shoprite or Checkers who buy in bulk may have a very strong ...

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