This study aims to analyze the competitive strategy of Danone Aqua in responding to the dynamics of the bottled drinking water (BDW) industry in Indonesia. The analytical methods used include the Internal Factor Evaluation (IFE), External Factor Evaluation (EFE), and SWOT matrix to assess the company's strengths, weaknesses, opportunities, and threats. The results indicate that PT Danone Aqua’s key strengths lie in brand dominance, an extensive distribution network, and support from the global Danone Group. On the other hand, external challenges such as environmental pressures, intense competition, and regulatory changes represent significant threats. Recommended strategies include eco-friendly packaging innovation, strengthening distribution channels, public education on product quality, and regional market expansion. These recommendations are expected to enhance Danone Aqua's competitiveness amid rapid industry changes.
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