Business Strategy Forecasting Industry Profitability

Question: Discuss about the Business Strategy for Forecasting Industry Profitability. Answer: Introduction: As the multinational companies entered the bottled water industry of US, the level of competition within the industry increased to great extent. During the period of 2002-2012, the level of competition is expected to rise to greater folds as the major brands like the PepsiCo, Coca-Cola, Nestle and Danone. These companies are going to use aggressive marketing strategies in order to gain the competitive advantage. In the year 2001, the volume of the bottle water industry has rise to 11% for the last four years. The per capita drinking of the bottled water in US is just 60 liters compared to that of 92 liters in the Western European countries. However in the next few years this difference is expected to be minimized as the people of US are becoming more aware about the importance of mineral water. At present there are two types of bottled water that is available in the market of US, which includes the spring water and purified water. In the next few years the market is expected to be dominated by the purified form of bottled water. The marketing channels that are used by the bottled water companies are also likely to be increased, which will help in the process of supply chain distribution. The channel of distribution is also expected to be expanded to increase to both off-trade and on-trade forms. However, the premium brands are expected to distribute their products using the on-trade channels as it will help in the main of the reputation of the brands. However, with the help of off-trade channels it is possible for the small scale bottled water companies to dominate the market. By the year of 2012, the bottled water industry of US is expected to have greater level of profit as the demand of package water is likely to increase. The efficiency level of the supply chain of bottled water is also likely to increase due to the introduction of the innovative techniques. The aggressive marketing strategies of the large scale companies will also help to boost sales. Assessing strategic Positing The Coca-Cola Company was slow while entering the market of bottled water in the United Sates. However, with the launch of the Dasanai in 1999, the company was able to make significant profit in the sector. The company became the third largest company of bottled water company. The PepsiCo on the other hand, entered the market of bottled water with the help of the brand name of PepsiCo. At the initial stage the company was able to make significant profit. However, with the help of the as the Dasnai brand entered the market of US bottled water industry in the year of 1999, the PepsiCo faced a major challenge. The Danone is considered to be one the oldest company of bottled water. One of the main aims of the company was to be the leading global brand of bottled water. The Nestle has also able to enter the market with the help of the acquisition of the Vittel in the year 1969. Moreover, after the acquisition of the San Pellegrino in 2001, the company has able to gain significant competitive advantage. However, out of all the companies, the Coca-Cola Company with the brand name of Dasanai is predicted to make the maximum profit in the coming 10 years. The reason for the success of the company is due to the fact is because of the following reasons. It is the latest brand for bottled water, which uses the innovative way of purifying water. They used aggressive marketing strategies, which helped them to make competitive advantage. They use both on and off trade policies, which helps them to distribute their products in wide range of areas. The Coca-Cola company was able to gain the completive advantage due to the as they used aggressive marketing strategy. The target of the Dasani brand is to incorporate the policies, which will help them to target the younger generation of the society. The brand name of Coca-Cola is the biggest strength of the company, which will help them to gain the reputation in the market. However, as the company use spring water, the price of the water is excessively high. This is one of the major weaknesses of the company. Lower the price of the products. Spread the awareness among the people about the importance of the drinking purified water. Add important minerals in the bottled water, which helps to maintain the health of a person. Assessing the launch of JetStar in the Australian Domestic market The Jetstar Airways is one of the leading brands of Australia and is famous for providing low cost air travel service. The company launched its commercial operations in the year 2004, which consisted of 100,000 promotional fares options. The network of the company is extended to 14 different airports of Australia. One of the main reasons for the success of the success of the company is due to the lower price that is available in the market. The business model that is used by the company is based on the ideas related to the business ideas of all the low cost airline companies of the world. They used all the best features of these companies, which helped them to gain popularity over small period. They were also able to have independent about the IT regulations within the company, which helped them to make use of the independent decisions about the regulations. The Jetstar has been one able to introduce direct flight between all the major cities of Australia, with short-haul. They have also employed skilled technicians, who have been ability to do minor repair works is short interval of time. This help to save lot of time, which enables them to increase the total number of flight. Unlike the competitors of the like the Virgin group, OzJet, which do not allow last minute booking of flight, Jetstar have allowed the booking even in the last moment. The Jetstar also offered low cost international airlines in important cities of Christchurch. The price of the tickets of all other flights of includes the expense of the food and beverage that is being provided in the flight. However, the Jetstar have the policy to offer the option of lower tickets as the passengers may not like to have food for short distance flights. The management of Jetstar has gained significant experience from the failure of airlines, which has been operated by Quantas. Being a major subdivision of Quantas, the Jetstar has been able to gain significant experience about the operation of low cost air travels. Recommendations for Jetstar in the international market As the demand for the air travel is going to increase in the coming years it is important for the airline operators like Jetstar to increase the total number of lower cost flights. This will help the airline company to gain significant profit. The company needs to expend the market in the smaller cities of Australia, which will help them to provide good market for the cheaper budgets air travel. The company needs to encourage the passengers to purchase online tickets, which will help them to save the cost of agents. Discounts offer on online booking will also ensure that more customers are using the online booking facility. It will help the customers to get the extra discounts and also allow the airline company to save the cost of agents. The company can also reduce the total number of cabin crews, which will help to reduce the expense on employees. The flight also needs to have more seats, which will allow more number of passengers. With the help of the aggressive marketing policies, it is possible for the company to gain the competitive advantage in the tough airline industry. One of the requirements of aggressive form of marketing is to provide cost-effective air rides, which will encourage even the middle class of the society to travel by air instead of other cheaper modes of communication. Cocnclusion: The level of security is also a matter of concern and the Jetstar need to ensure that due to lower price, the security of the passengers are not compromised. They also need to assure the passengers about the high level of security that is being provided by the company as due to the past terrorist attacks like the one of 9/11 in USA, there are many people, who fear to take flight trips. The company needs to employ more staffs in the security department. Hence, with the help of effective future plans, it is possible for the airline company to sustain the future of the industry. The company needs to have strict actions for the overall management of the flight journey. The level of customer satisfaction is one of the prime criteria for the success of the airline companies. Jetstar needs to have online survey and customer feedback system. It is also important to suggestions from the customers, which will help them to get the idea about the changes that need to make in each of the flights.