Case study three

Submitted by:
Ravindra Khatiwada
Submitted to:
Prof Dr. Raj Kumar Sharma
Bus 590: Business Strategy

Case study three

Introduction:
Fiji water is US based mineral water company which provides a premium quality of
water to its consumer in different parts of the world. It was founded by David Gilmore in the
name of Nature Best with the concept of providing natural drinking water directly from the
source to its consumer. The source was an artesian aquifer which consist rain water and it is
filtered naturally with the help of volcanic segmented rocks. The Fiji water concept has attracted
the consumer towards them and with the success in domestic market they started expending their
business in different other part of the world. Fiji water is one of the market leaders in the supplier
of drinking bottled water in the world. The company has a good brand image as it has gained
with the quality product and also it has tie up with the world reputed hotels, resorts and
personality which works as a brand promotion activity, also it has got award of business
Excellency in the water industry. It has also good marketing strategy for its capture of its brand
image in the mind of customer. The issue that Fiji water is facing by the environmentalist and
conservationist is of carbon footprint which is caused also from its mode of shipment and also
from the production of bottle. This case is mixed with different aspects of the Fiji water which it
has faced and also with the strength and weakness of the organization and also about its remedies
for the carbon reduction program.

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Analysis:
The Fiji water has been criticized by different activist in different issue; mostly it is done
in the United Kingdom major issuing its carbon footprints. As it has faced carbon related issue
then to overcome this issue the company has brought carbon negative program, like reducing
carbon emission from its production line, shipment and other different related program was
brought. As going bigger the company has faced the more problem then it was operating in its
domestic market, it has increased its production, marketing, and distribution while going bigger.
While getting large the company also faced increasing number of problems and social
responsibility issues. With another side the company has also its different strength and weakness
with it and different core competencies and key successful factors. There is a doubt that the
environmental issue that Fiji is facing to what extent it is real and to what extent it is prorogated
to by the people to ruin the image of the company.

While looking the different factor of Fiji water according to the case it as be listed as follows:
Strength:
Its pure water than any other company directly from the natural source is one of the
major strength of the company. A good brand image along with the tie ups with reputed
organization and personality, also the marketing strategy has also made customer to grab the
bottle of Fiji water in their hand, and also the water full of minerals and other nutrition that is
required for human life has been also the strength of the company.

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Weakness:
They had a great issue created by the activist and many other different governments by
promoting tap water instead of the bottle water by saying the quality is same for the drinking
purpose, which may reduce their market area. And also different environment issue that the
company is facing is being one of the weaknesses of the organization, which compel them to
spend a lot of money addressing these environmental issues.

Responsibility taken by Fiji Water in concern to environmental issue:

As Fiji water faced different types of criticism on the environmental issue and had a great
question mark on its corporate social responsibility, so in 2008 the Fiji water took action to
overcome these issues. The company came with carbon negative campaign and they started
carbon disclosure project where it measure the amount of carbon that company generate and
disclose to every people and stake holders of the organization. The company decreased the 20
percent of its packaging to support the program, and also they started using and focusing on
renewal energy at the bottling units. They also launched the tree plantation program to save the
greenery of the grasslands, and also launched the recycling method for re usages of pet bottle.
The Fiji water had spent large money for the preservation of rain forest in the Fiji Island and has
also decided to give its one percentage of global earnings to protect the environment throughout
the world.
Taxation issue and the relationship with the government and the local community:
The government and the Fiji water company had a clashed in the tax issue in the year
2008. In operating inside there was no issue with the government but government hooked the tax
on their exports of the water to other country. in that year government implemented tax of 20

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cents per liters of exported water which brought a issue of clash between water companies and
government. Looking at the government policy they had removed taxes on the water company
and they have given tax grant for more than twelve years and this imposed tax was shocking to
Fiji water. In opposition of this tax issue the company was closed down for temporarily and there
was a condition a large number of layoff of local employee of the Fiji and possibility of shutting
down the industry .and later the government removed the and the company started operations
and later in the same tear government imposed a different types of tax called Water resources
Tax for using the water of the country.
While looking the relationship of company with the locals and the neighbor communities
there is a good relationship, here in this case the company has mostly fulfilled the Corporate
Social Responsibility as it has given different facilities in the area of job, education, health and
given blend of opportunity in retailing to locals and whole selling, and the company has also
establish the trust to support the local life.

Recommendation and conclusion:

The Fiji water has grown in the passing period of time and has faced different problems
in its phase of growth as growth continues the hurdles will also continue it will not be ended
because of the product nature. The environment issue may be arise with the real reason of
environmental problem or for the ill intention towards the organization by peoples, so the
company should be prepared for that and should also make an advance strategy for that type of
contingency scenario. The company has also good brand image and good marketing policy and

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promoting strategy and they should keep it up to sustain the growth. They should reduce the
operating cost and give a product in low price as its maturity stage is running. The Fiji water has
faced different environmental problem in the past and has done many effort to overcome the
issue that it faced. The social responsibility issue may arise in any area so the company should be
prepared for it also in context to the local and governmental may be high in the home land. It can
also go for the replacement of plastic battles with other eco friendly material and shout down the
mouth of the activist.

References:
Pearce II, J. A., & Robinson, R. B. (2011).Strategic Management: Formulation, Implementation,
and Control (12th Ed.). New York: McGraw-Hill Irwin.
http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=12761894