Porter's Five Forces

Part A Task 1 1. What type of organization is Australian Beverages Limited? Family owned? Private? When it was founded? Founded by whom? Currently run by whom? 2. What industry, product segments/ markets does ABL operate in? nd 2 largest Core activities Product categories and segments Foreign or domestic ? Distribution channels Stages in the value chain 3. What is the current life-cycle position of the industry? p. 2.24 The Australian bottled water manufacturing industry is currently in a growth stage. Growth has been achieved due to the increase in per capita consumption of bottled water albeit from a relatively low base compared with other more established beverages. As consumers become more health conscious and change their drinking habits away from CSDs to healthier beverages, bottled water would increasingly become their drink of choice. The non-alcoholic beverage industry is at the growth stage of its life cycle. Consumption of nonalcoholic beverages in Australia increased from 179.7 litres per capita in 2005 to 228.5 litres per capita in 2009. Per capita consumption trends for all non-alcoholic beverages generally follows consumption patterns in the United States. On that basis, there are still significant opportunities for growth in all non-alcoholic beverages, including CSDs. Currently, Australian per capita consumption is 63 per cent of the US consumption level. 4. What have been the key issues affecting historical industry growth? What was their impact (high/medium/low)? (growth % analysis (high/medium/low) +remote environment analysis (+/-) P. 2.14

2004 Growth % of BW Revenue Growth % of NAB Revenue

2005

2006

2007

2008

2009

Average

13.58% 6.61%

7.61% 6.72%

8.08% 6.49%

12.15% 6.04%

11.25% 4.30%

11.09% 8.30%

10.63% 6.41%

2004 Growth % of BW Consu per capita

2005

2006

2007

2008

2009

Average

10.46%

4.44%

5.38%

7.26%

8.52%

5.08%

6.86%

NAB Consu litres per capita Growth %