Cooroy Mountain Spring Water is a privately owned company which is located in the Sunshine Coast near the popularly known tourist destination beachside of Noosa Heads and approximately ninety minutes to the north of Brisbane. The company was formed in 1991 following Noosa Sheraton’s request for an increased supply of high-quality water for their visitors. Significantly, the business has been growing fast, and has supplied a large number of bottles of water in the past fourteen years. The Cooroy Mountain Spring Water is a recognized supplier of the Australian Bottled Water Institute (ABWI) which has been awarded as the best Water Bottling Plant in the year 2001, 2002, 2003 and 2004 respectively. However, the plant is based on a hospital working theatre that is hassled, filtered and sterilized air; hence this keeps and maintains the environment free from contagion. The Spring Water undergoes some processes before bottling. For instance, the water is passed through a series of UV filtration as well as carbon filters, responsible for removing any micro- organisms, hence there will be no need to inject ozone into the bottled water as it is free from micro-organisms (Dinu, 2015).Various tests have been conducted on the water by personal laboratories and the government, and it has been recorded to be of an outstanding quality. This essay seeks to discuss the environment of the company, its strengths and weaknesses, strategies, its recommendations and justification.
Analysis of the Cooroy Mountain Spring Water Company Environment
The environment of a company refers to all the factors that affect its operations such as competitors, suppliers, employees, clients, business regulations, and its management strategies. The Cooroy Mountain Spring water company has more than 60 workers who work in four hierarchical levels (Milan, Da Silva, and Bebber, 2015). The large number of employees ensures that the customers are efficiently satisfied and the health of the water is maintained. According to the article, the company has never changed its general manager who is usually the head of the six functional areas that include customer service, marketing, finance, sales, operations, and logistics. The manager has played a major role towards the success of the business by keeping abreast of the developments in the company.
Cooroy Mountain Spring Water faces stiff competition from other bottled water companies. However, the company has adopted some strategies to curb the problem of competition and among them is producing water to target both the individual consumer market and the bulk water market. Apart from that, the company also relies on community sponsorship and support so as to sustain its local and state events. This, therefore, promotes the brand image, thus urging many people to purchase the water and maximizing the company’s profits. Further, the company has also diversified its water production having the Coca-Cola Amatil brand playing the major role in enhancing the company’s brand reputation (Zhu and Chung, 2014). The firm has highlighted this through ensuring that its products are made unique from the products of other companies. For example, the introduction of square-shaped bottles to replace the round ones for more efficiency has enhanced the brand image.
As stated by the Australian Consumer’s Association, the major customers for Cooroy Mountain Spring water are the young females, especially those between the age brackets of 14 to 35 years. The company’s customers believe that bottled water is healthier and more convenient; this results in an increase in the purchase of the water. It is recorded that the company earns around $123 million annually, which enables it to take the greatest role in the bottled water market (Dinu (Popa), 2015). Apart from that, young males in military organizations are also key purchasers of the water since they argue that the water tastes better than the tap water and also that it has low chances of having micro-organisms and other harmful chemicals since it has been purified.
Moreover, the company has very healthy management styles where the authority comes from the general manager. This means that the manager is the one who controls the six levels of water production in the company. However, despite the fact that these management strategies are appropriate, they have a major weakness in that they do not monitor the level of bromates in bottled water. The reason is that the company’s bottled water exceeds the Medical Research Council and the National Health guidelines for tap water (Milanov and Shepherd, 2013). Further, a study that was conducted by Australian Water Quality Center revealed that the company water bromate exceeded the healthy level stated in the health guidelines.
The Company Key Resources and Capabilities
Cooroy Mountain Spring Water majorly relies on support from the community through organization of particular events and exhibitions’. In such events, participants buy a lot of their products, hence making a lot of revenues (Kumar, 2014). However, research also shows that the primary providers of the company is the national grocery for which it sells close to 50 percent of the total retail water supply.
Cooroy Mountain Spring Water has various capabilities and the improved brand image is among them. The company has cultivated the image of its brand through the use of appropriate advertisement strategies as evaluated in a research done via online poll which showed that many people purchase the product because they believe in the healthy condition of the water as compared to other sources. On the other hand, the water has been rated as the best brand offering pure and quality water to customers. The water bottling plant has received enormous awards in the previous years and also was awarded an Order of Excellence in the year 2003 and 2004 (Håkansson and Lagin, 2015). Despite the existence of numerous competitors, Cooroy Mountain Spring Water is a company that still remains a major supplier of spring water to different regions.
Strategies used by the Company
Cooroy Mountain Spring Water has evaluated various strategies in the business relating to market entry. This has ensured the success of the company. The firm has provided a magnificent environment that has boosted the demand for increased supply of its products. The company has also made many alliances. For example, Cooroy Mountain Spring Water has remained a major supplier to the Australian Defense Forces, serving in the various units of the US military and mining companies in Papua New Guinea. Moreover, the manager of the company has taken a major role in generating success by influencing the industry through lobbying and legislations, and through being a member of ABWI public relations committee. Additionally, the identification and management of environmental threats have been improved, hence fostering the supply of the products to various places in addition to the increased number of the competitors (Graham, Corcoran, Scott, and Sharma, 2012). The company also considers rebranding the shape of the water bottles into a square or curvy shape. This is expected to increase the effectiveness of the package.
Recommendation and Justification
The business strategy for entry behavior that I found most suitable is the creation of alliances with other countries. That is because alliances create inter-organizational relationships between companies in other countries, thus widening the market for an organization’s products. For instance, the creation of alliances between the Cooroy Mountain Spring Water with companies in Australia has enabled it to be the sole supplier of bottled water to the Australian Defense Forces (Giedraitis, 2014). This has, therefore, caused an improvement of the sales of the company, thus increasing the company’s marginal profit. Apart from that, the company can use the alliance to establish more branches in other countries, thus widening the market for its bottled water.
In addition, creation of alliance improves the company’s reputation and also its brand image. This is because the company is in good terms with its competitors in other countries and thus it can still use some of their strategies to improve the quality of its products. Further, the firm can also obtain some of the raw materials that it requires in order to produce the bottled water at a cheaper price than other countries, particularly those that produce such materials (Breznik and Lahovnik, 2014). For example, the Cooroy Mountain Spring Water can acquire chlorine that is required for water purification from the UK, Japan, China and Canada if it has established some alliances within such regions.
Moreover, the creation of alliances helps in creating sustainable customer values. Alliances are vital blocks for organizations to achieve more effective and stronger market segments. Therefore, it can be deduced that the establishment of alliances is not only important in improving the current operations of a company, but also its future strategies.