Strengths: From the dawn of its time Fuji water has been viewed as the luxury water bottle brand of the century. The companies main strength is this title of being a luxury water brand. Fiji water has simply marketed its unique volcanically sourced water as being of much higher quality that its competitors, and as a result the company is able to charge absurd amounts for something that simply is free. Since Fiji water has this connation with its brand of being higher quality water, it is able to keep the price of its products much higher than many other competitors, providing the company with great profit.
Weaknesses: Although Fiji water appears to be a clean and guilt free company, the company has gained a lot of criticism over its time. The company has been continually bashed for its over pricing of water. In addition it has been faced with the dilemma of searching form more environmentally friendly options regarding productionand the bottles of water themselves. In addition since the companies main source of revenue is based off of selling water, this in itself is a weakness. Since water is simply free tous consumers, Fiji water can only sell water at such a high price for so long until its consumers switch to an alternative that is lower in price.
External Opportunities: Fiji water is aware of its weaknesses. Because of this, the company has increased its advertising budget from six million to 10 million in 2008. This comes to show that in order to maintain the companies exlusive brand image, and compete directy with other water brands it must invest more in its marketing. In order to respond to the environmental isues that the company faces Fiji water has teamed up with non-profit organizations such as 1% for the planet to assure its market that they too are taking action.
Threats: The companies main threats are other water bottling companies in the industry. Companies such as Voss water, and starbuck's water Ethos are in competition with Fiji as they too are viewed as a luxury water brand.
No comments:
Post a Comment