0924discussion Group3

Case: Stanley

ERRC

Eliminate：the reliance on lightweight, low-cost designs

Stanley eliminated the reliance on lightweight, low-cost designs, opting instead for high quality and classic durability. The Stanley bottle does not focus on being lightweight but on long-term use value and sturdiness.

Reduce：

Reduced target customers：appealing to users who value brand heritage and durability.

Reduced usage scenarios：Because it's large and not as portable as a regular cup, it's only suitable for placing in a car or on a desk, making it difficult to carry around. The straw might also pose hygiene issues and can be hard to clean.

Raise：

Quality: Elevated the level of insulation performance and durability, making its products suitable for extreme outdoor conditions and long-lasting usage.

Raised personalized customization； There are various styles and colors to choose from, and customers can also customize exclusive words to attach to their Stanley bottles

Create：Social attributes

Stanley can enhance its social attributes by encouraging users to share their personal stories with the brand, creating a community for outdoor enthusiasts and eco-conscious consumers. Utilizing brand hashtags (e.g., #StanleyAdventures), Stanley can promote user-generated content (UGC) and engage in social challenges, fostering deeper connections and increasing brand visibility across social platforms. By offering rewards for creative posts, Stanley incentivizes engagement and builds a strong sense of belonging among its fans.

Porter's Five Forces 

Threat of New Entrants: Moderate

The threat of new entrants in the water bottle industry is moderate. While the barrier to entry in terms of manufacturing and distribution is relatively low, creating a strong brand like Stanley, with its rich heritage and reputation for durable products, is difficult. New entrants would struggle to match Stanley’s brand loyalty, quality perception, and customer trust.

Buyer power: moderate to high

The bargaining power of buyers is moderate to high. Consumers have access to a wide range of alternatives in the market, from low-cost brands to other high-end brands like Hydro Flask and Yeti. Additionally, with easy online shopping, customers can compare prices and features across multiple brands.

Supplier power: relatively low

The bargaining power of suppliers is relatively low in this industry. Materials for producing water bottles, such as stainless steel, are widely available and can be sourced from numerous suppliers. There are limited unique components that give suppliers leverage over Stanley.

Threat of Substitution: high

The threat of substitutes is high in the water bottle industry. Alternatives such as cheaper, non-branded bottles, reusable plastic bottles, or insulated containers from competing brands pose a direct threat. In addition, disposable bottles or other hydration solutions (such as hydration backpacks) could also substitute for water bottles.

Competitive rivalry: high

Rivalry among competitors in the water bottle industry is high. Brands like Starbucks, Costa, and Thermos offer competitive alternatives. Many of these brands emphasize functionality, design, or sustainability, which can draw away some of Stanley’s customers.