AQUA is the market leader in the bottled water industry in Indonesia, with a distribution and marketing advantage that allows a 10-25% price premium over competitors. However, AQUA faces competition from around 50 other bottled water companies in Indonesia. While most competitors are small regional companies, some have market shares comparable to AQUA. Main competitors include Ades, Oasis, and Air Sosro brands. To remain the market leader, AQUA needs to continually assess its external environment, formulate objectives and strategies, and evaluate the success of its strategic decisions.
AQUA is the market leader in the bottled water industry in Indonesia, with a distribution and marketing advantage that allows a 10-25% price premium over competitors. However, AQUA faces competition from around 50 other bottled water companies in Indonesia. While most competitors are small regional companies, some have market shares comparable to AQUA. Main competitors include Ades, Oasis, and Air Sosro brands. To remain the market leader, AQUA needs to continually assess its external environment, formulate objectives and strategies, and evaluate the success of its strategic decisions.
AQUA is the market leader in the bottled water industry in Indonesia, with a distribution and marketing advantage that allows a 10-25% price premium over competitors. However, AQUA faces competition from around 50 other bottled water companies in Indonesia. While most competitors are small regional companies, some have market shares comparable to AQUA. Main competitors include Ades, Oasis, and Air Sosro brands. To remain the market leader, AQUA needs to continually assess its external environment, formulate objectives and strategies, and evaluate the success of its strategic decisions.
1. Does AQUA have the resources to compete successfully in this industry?
AQUA is the unquestioned market leader in the bottled water industry. Distribution systems, marketing strategies, and special packaging creates a competitive advantage. Allowing the price premium of about 10% to 25% above the prices which is pegged competitor brands. AQUA compete in all market segments, producing Vit under license from the French Vittel and their holders to some supermarket chain in Indonesia. Franchise Mc. Donalds in Jakarta sell AQUA, which reveal a gold bow Mc. Donalds along with AQUA logo. Over the last five years of success AQUA has attracted competition from about 50 bottled water companies in Indonesia, which sells more than 70 trademarks. While most are small regional factories, some competitors have a market share in line with the fundamental financial resources, market knowledge and distribution systems that can be a serious threat would AQUA shaky. Figure 5 is a list of the main competitor AQUA. Ades, Oasis, Air Sosro in agrsif challenge the leadership of the AQUA water dispenser market highly profitable in Jakarta. Air Sosro family companies control the market of tea in a bottle in Indonesia premises selling one million bottles per day with flag Sosro Bottle Tea brand. Air sosro appreciated approximately 20% below the water AQUA, Bonaqua, the Coca Cola products are valued equally with AQUA, is an international brand name with a strong distribution system in Indonesia. Pure ABC produced by PT ABC Central Food, a large distributor of soft drink concentrates traditional in Indonesia. The success of the trademark AQUA has attracted at least 10 imitator to use the word "aqua". Tirto actively defend its trademark, won a legal battle against companies that use the name Club AQUA and Aquaria. In its decision in May 1992, the Attorney General of Indonesia declared that the word "aqua", when used in water in a bottle not a common Latin name, but the trademark is protected. AQUA lawyer denied that the word was registered as a trademark since 1973, updated in 1986, that AQUA has spent millions of dollars to advertise the trademark, and the result of this advertising, customer minds Indonesia said AQUA continued with bottled water produced by PT. Aqua Golden Mississippi. Therefore bottled water company that others can not use the word "aqua" in its name or logo except under a license agreement. The court has agreed. Based on the paragraph above, it can be concluded that AQUA has resources to compete successfully in this industry. It also can see by, AQUA share price as of May 2, 2001 amounting to Rp. 13.500, - per share, a price that is sufficient compared to when the time had decreased to Rp. 4.500, - per share, showing significant resources aligned with Sampurna and Indosat and Telkom.
2. What has to be done to keep AQUA on top?
What should be done to keep AQUA at its peak, only repeating a strategy that has executable form : Set of decisions and actions that result in the formulation and implementation of plans designed to achieve company’s objectives : Critical tasks should be engaged : 1. Assess the company’s external environment 2. Formulate company’s mission 3. Develop a company’s profile 4. Analyse the company’s options 5. Identify the most desirable options 6. Select a set of long term objectives and grand strategies 7. Develop annual objectives and short-term strategies 8. Implement the strategic choices 9. Evaluate the success of strategic process