Red Bull Analysis

4398 Words Oct 26th, 2012 18 Pages
General Analysis, Recommendation, and Implementation Industry: Energy Drinks Company: Red Bull

By: Thomas Domenjoz Olivier Courtemanche Nouadir Yiteng Ma Jayme Donohoe

Part I: External Analysis General Environment The Canadian population is virtually stagnant (0.83% growth) and prospects from our key demographic [15 to 24 years] are even worse: their numbers are actually expected to decrease from 4,469,300 in 2007 to 44,653 in 2011. The legal environment is also expected to worsen as health concerns regarding energy drinks are likely to cause tougher regulations such as limits on caffeine and taurine per drink. The economy is expected to suffer from the current troubles in the United States and other dependent and related nations,
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Part II: Internal Analysis Corporate Level Strategy Red Bull follows a dominant corporate level strategy, as the company is still heavily dependent on their main product, the Red Bull energy drink. Other businesses that make up less than 25% of Red Bull’s revenues include Red Bull Cola, and several professional sports clubs, notably Major League Soccer’s MetroStars team which they renamed Red Bull New York. Because Red Bull 's marketing strength is a core competency, it has been effective in developing many products such as apparel, sports teams and extreme sports events that add to the overall brand image but are simply marketing tools and do not qualify as diversification. Even though

Red Bull is beginning to diversify, all of the new divisions use strategies similar to the company 's main business-level strategy of focused differentiation. Business Level Strategy Contrary to ordinary colas and soft drinks, which have been targeting the entire family since the 50s, energy drinks cannot be consumed like regular drinks. They contain chemicals which, as the name indicates, give energy to the consumer. Thus, in order to gain a competitive advantage, Red Bull had to exploit its core competencies in a specific market. The uniqueness of the Red Bull product, which “vitalizes body and mind,” had to be

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