Competition in Energy Drinks

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Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages 1. What are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain. The strategically relevant components of the global and U.S. beverage industry macro-environment are essentially the expansion of the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in international markets, and increasing the market size of alternative beverages by extending current product lines and developing new products. Numerous factors affect the…show more content…
The market for energy drinks, sports drinks and vitamin-enhanced beverages has changed a lot over the years and will continue to see changes well into the future. The underlying drivers of change include changes in growth rate (decrease) and innovation. Worldwide dollar sales of alternative beverages grew by more that 13% annually between the year 2005 and 2007, however, it slowed down to about 6% between 2007 and 2009. One might argue that the reason for this decline is the impact the ongoing recession has on the beverage industry. Beverage producers continue to maintain their optimism for the industry regarding future prospects that will be brought to fruition by innovation in brands, flavors, and formulations. These are the facets that they believe will support their premium pricing and volume increases. 4. What does your strategic group map of the energy drink, sports drink, and vitamin-enhanced beverage industry look like? Which strategic groups do you think are in the best positions? The worst positions? The strategic group map shows the leading alternative drink producers competing both geographically and in regards to variety of drinks offered, there are therefore the strategic groups in the best positions. The alternative drink companies are not only competing domestically, but in an international scale as well. Hansen Natural, the producers of Monster energy drink, who splits distribution of it’s energy drinks between
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