Question

Identify the broad market structure of bottled water in the U.S

Identify the narrow market structure of bottled water in the U.S

Identify all major competitors and market share data of bottled water in the U.S

Measure the concentration in the industry of bottled water in the U.S

Identify the market structure using the narrow definition of bottled water in the U.S

Answer 1

Us bottled water market in broad sense is occupied by 4 firms namely Pepsi, DS waters, CG Roxane, Coca Cola, Niagra, NWNA and is an Oligopolistic market structure since market is concentrated by some firms.

In narrow sense players like DS waters and CG roxanne who merely focus on sparkled water and is dominated by both of them as premium segment in this sparkling category and fall under duopoly market structure as costs are high and so are prices charged for this niche segment

Market shares shared below.

• Pepsi 4.4%
• Coca cola 5.8%
• Ds water 5.7%
• CG roxane 5.5%
• NWNA 29.3%
• Niagra 25.2%
• All others 24.1%

Concentration can be calculated using HHI index by squaring market shares of all firms and adding up.

Hence HHI index = 2190

Since it is greater than 2000 it suggests that is highly concentrated industry.

answered by: anonymous