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| Words: 2167 | Submitted: 15-May-2011
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Descriptionsynergy or lack of it
Ballygowan spring Water Company is a well-known Irish manufacturer of sparkling and non sparkling waters. The concept of bottling and selling water from Ireland was first developed by Geoff Reid, the founder of the Ballygowan brand in the 1980’s. The Bottled water industry is a profitable industry. This industry is in the midst of one of the world’s most alluring beverage groups. Globally, it is the fastest growing division in the beverage industry, with an average of a 7 to 10 percent increase in consumption per annum.Bottled water industry is reaching the mature stage of the product life cycle and about four large dominate the industry worldwide. Today about three thousand brands of bottled water and mineral waters are available around the world. The growing trend has generated a large demand, and almost every day a new bottled water brand or company is born.The bottled water industry attracts consumers due to its portability, convenience and heath image. In Ireland alone, the consumption of bottled water has soared, up from 113 million in 2001 to 183 million in 2008. Ballygowan bottled water has a firm foothold in the Irish bottled water market. It is the only Irish bottled water company contributing significantly to the development of the Irish Bottled water Market. It is the undeniable leader in the Irish Bottled water industry.
Figure 1: The Value Net. (* Below)
*Figure 1 continued.
Company: Ballygowan Water
Customers: A wide variety of customers. All ages. Both rural and urban populations. All Professions. Variety depends on consumer preferences e.g. flavoured or plain water.
Complementors: Kerry Spring, Tipperary water and other smaller regional sellers in Ireland.
Suppliers: Ballygowan bottling equipment plant. Sourced from a well in Limerick.
Competitors: Water brands that compete in the global market such as Coca cola (River Rock and Dasani) and Pepsi (Aquafina) and other soft drink companies.
Porter's five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. He has identified five forces that determine intensity of competition and the appeal of an industry. The forces also influence the profitability of firms already in the industry. These five forces are:
The threat of new entry.
The Bargaining Power of Buyers.
The Bargaining Power of suppliers.
The threat of substitute product and services.
Rivalry among existing competitors.
Figure 2: Porter’s five sources that shape industry competition.
The first force is the threat of new entrants. New entrants place pressure on costs, prices and the rate of investment necessary to compete. New entrants bring capacity and are determined to gain market share. Barriers to entry reduce the number of new firms entering a specific market, thus holding on to a ...
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