The Production Side Of Red Bull

1600 Words Dec 10th, 2015 7 Pages
Opportunities Red Bull has various opportunities for growth within its current state. One of the leading opportunities is the production side of Red Bull. If it expanded its production on a more regional basis, such as one in a North America, Europe, and Asia it would be a larger upfront cost, but, in the long run, would cut down shipping costs leading to higher profit margins. Another opportunity is expanding to the Asian market, According to Euromonitor, Asia has surpassed the United States as the largest consumers of energy drinks, mostly due to its overwhelming population comparative to the United States, yet, Red Bull has the smallest share of the market in Asia compared to the other 6 continents. Expanding its market share in Asia could lead to a huge increase in net sales for the company. Lastly, the biggest opportunity for growth is if Red Bull can find a way to diversify its drinks into different markets, such as soft drinks, health drinks, and even possibly tap into the sports drink industry and be able to compete with brands such as Gatorade and Powerade. In order to do this, Red Bull must change its drink formulas, to allow for the needs of the consumer in each of the different markets. More often than not the main cause for a company investing in a new growth opportunity is due to a threat from competitors encroaching on the company’s current profits.
Threats
When contemplating future opportunities companies must also be aware of threats to their current…

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