Energy drink and alternative beverages essay
Red Bull differentiates itself in not only the soft drink industry by focusing on energy drinks solely, but also in the business industry, seeing how their strengths, weaknesses, opportunities for improvement, and threats all seem to blur together. As one of the biggest beverage companies, PepsiCo noted this demand and ventured into processing the different brands.
What cardinal factors determine the success of alternate drink manufacturers? The last major concern with this rising industry is the fact that most products are subject to discretionary income.
S market. But is this really true? The strongest competitive force is competitive rivalry within the industry, competition grows stronger by the year.
Energy drink studies
Kim, W. For example, caffeine in energy drinks, mixture of alcohol and energy drinks, melatonine hormone in relaxation drinks, and use of Kava and unapproved valerian roots as food additives. Since the alternative beverage industry is a very lucrative one and tends to carry high price points, this profitability becomes very attractive to new entrants because of the possibility of being able to achieve success in the industry. The weakest competitive force in the alternative beverage industry appears to be the bargaining power and leverage of sellers. Small producers with poor image building capabilities found it difficult to compete in the industry unless the product enjoyed a first-mover advantage similar to that achieved by 5-Hour Energy. The one-year rate of growing for the dollar value of the planetary market for alternate drinks was forecasted to worsen from the 9. Each of these products holds a commanding market share as copycat products fight for the scraps. PepsiCo has over one hundred sub—brands of brands in the market that have been developed from the main brands.To Red Bull GmbH? Global beverage companies, such as Coca-Cola and PepsiCo, have struggled to reverse the decline in carbonated soft drinks consumption in the U. Thompson, A. Based on the geographic share of the alternative beverages market, U.
For example, the dollar value of the global market for alternative beverages grew at a 9. What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants?
In the yearthe company decided to lower the prices of its products with the price of Red Bull products. Since the alternative beverage industry is a very lucrative one and tends to carry high price points, this profitability becomes very attractive to new entrants because of the possibility of being able to achieve success in the industry.