We started the understand stage by using the PESTL analysis to gain an understanding of the business environment in which Bobble operates.
Political: Bobble operates in the US and the taxation is as high as 35%
Economic: Bobble operates in 29 countries, therefore economic events in any of these countries can affect sales. For example, they operate in Britain where there is economic uncertainty because of Brexit. This may affect sales as well as a loss in profits due to the decrease in value of the British pound and customer uncertainty.
Sociocultural: Our ever increasing environmentally friendly outlook has helped Bobble’s business. The public are now more aware that plastic bottles are negatively affecting the environment. US landfills
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Bargaining Power of Buyers: In this market due to the large amount of competition, consumers have a sizeable portion of buying power. This is because they can switch from a Bobble bottle to any of its many competitors for little cost. This keeps the prices of the bottles in the market relatively low.
Competitive Rivalry: There are many water bottle producers in the market that also offer their product for the same price as Bobble. However many of these products are inferior to Bobble’s product as they do not contain a filter. Despite this and being the market leader in water filter bottles, Bobble are not the only company that offer a water filter bottle and therefore their competitors in the market dictate the price of the product as well.
Threat of Substitutes: For Bobble the threat of substitution is extremely high. This is due to the wide availability of single use water bottles to consumers. These water bottles cost a fraction of the price of a Bobble bottle (around €1) however they do not tend to be reused and repeated buying of these products leads to additional costs for consumers in comparison to if they had bought one Bobble