Swot Analysis on Red Bull Company (Essay Sample)

SWOT ANALYSIS
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STRENGTHS
• Marketing Ability “Gives You Wings”
• Strong brand
• Diversity in flavor, potential to expand
• Pro Athletes
• Social Media

WEAKNESSES
• Susceptible to Monster’s price decrements
• Quite new on market
• FDA problems with energy drinks
• Very few zero sugar/ zero calorie
• Cost, product line small

OPPORTUNITIES
• Smaller instant drinks
• Create more healthy style drinks, juice
• Marketing to primary sports
• Growing interest in extreme sports
• Global growth
• Revenue increment via new markets
• Vending machines
• New business opportunities
• New flavors
• E-Commerce growth
• Professional sports teams

THREATS
• Price wars
• FDA guidelines
• Health conscious buyers
• Popularity
• Competition
• Cost of media outweighs profits
• Loss of interests in extreme sports
• Product failures
• Shrinking market
• Economic stall

INTRODUCTION
Red Bull remains among the fastest developing firms during the past two and half decades owing to the company’s genius model that entices clients, fans and followers. The firm’s slogan, “Red Bull, Gives You Wings” is quite fascinating. When this is coupled with the capacity to forcing oneself into extreme sporting activities, social and medial ventures that draw attention, then one is said to have found a niche. This week’s task involved completion of a simple SWOT analysis to establish the best approach to be considered by Red Bull as the way forward.
STRENGTHS
Just as indicated in the introductory section, the firm’s slogan is the first step towards luring clients in. Red Bull has put much focus on safeguarding the brand by going beyond normal business confines such as pursuing logo and goods falsification. By considering TV adverts such as acrobats flying through the sky with squirrel suits on and flying Red Bull cans, the company has fashioned the perception that any client can acquire anything with Red Bull in one’s system. Besides, the company has considered its slogan in formulating Wings for Life, typically a token and research site concerning spinal cord injuries (Wings for Life - Spinal Cord Research Foundation, n.d.). It is the perception of the company’s founding shareholder, Dietrich Mateschitz, that scientists and doctors have the potential to have solution for body paralyses.
Unsurprisingly, owing to the firm’s great success in extreme sports, Red Bull has manufactured an extremely strong brand in two and-half decades that is internationally embraced. Their immersion in numerous areas enables them to appear virtually overwhelming to the customer. The inventive flavor of Red Bull has presently extended to more than 11 diverse versions of the beverage. The firm has been able to lure the masses owing to its sugar free, numerous flavors as well as a total zero Red Bull. Additional strengths enjoyed by Red Bull include the firm’s success in enticing consumers, as the company is considered a role model. In the current century, athletes are not only considered as role models, but equally superheroes. Should the sport be on ground, air, water or space, what matters is that the partaker is covered by a professional whose obligation is to model the firm’s product professionally.
Among the most prominent athletes include Felix Baumgartner whose fame is celebrated as the individual who set the global record in 2012 with a 120,000 foot skydive from the edge of space (What Is The Mission? | Red Bull Stratos, 2017). Additional athletes sponsored by Red Bull include Kris Bryant, Anthony Davi, and Linsey Vonn, all professional skiers, among other athletes in various sporting activities like snowboarding, rugby, running, surfing, truck racing, and motor cross among others. Among the best and quickest methods to market a product and connect with real tine clients is the use of social media. This platform gives one a prospect to reach millions of potential clients within a short period of time. In view of this, Red Bull embraced media as the best platform to reach the target audience, thereby instituting its TV station called Red Bull TV, in addition to an interactive website.
WEAKNESSES
Any business company is prone to weaknesses, hence the need for it to be wary, have the ability to plan and instill an effective implementation of business to avert these weaknesses. With Red Bull having ventured in a constantly growing market, involving energy drinks, the main competitor is Monster Energy whose effect has equally been felt in the industry. One of the business weaknesses facing Red Bull is the price drop by the firm’s main rival (Monster Energy). Since Red Bull did not immediately consider revising its prices, there’s a high probability that the company will lose some of its potential clients. Regardless of being in business for over two and half decades, Red Bull has comparatively fresh product on the market and seems to have insufficient data to facilitate reference of a valuable product. For example, summer flavors may fail to generate sufficient revenue to endure in the rotation.
While Red Bull cannot be regarded as a dietary supplement, the product is in compliance with the food regulations offered by the Food and Drug Administration (FDA). A significant number of cases have been recently reported concerning emergency room visits while a few deaths have occurred due to energy drinks. Should Red Bull fail to alter their products to institute better ingredients and stay ahead of other competitors, then the company might face a rough time from the FDA. The verity that the firm only adopts limited versions of the zero calorie and zero sugars makes the health-conscience consumers to consider other options. Last but not the least, the company’s minimal line of product is limited to drinks presently having two traditional sizes and a standard price model. Besides, there is a key weakness looming should the company fail to change their model and grow in future.
OPPORTUNITIES
Where threats dominate means opportunities for growth. The energy drink sector has begun to decrease in view of can sizes. With firms like 5 Hour Energy testing for small products, Red Bull should grab the opportunity and or ends up losing it. Just as mentioned in the previous section, flavors ought to be improved should a firm seek to remain relevant. This is the same with energy drinks, these companies should adapt to novel flavors with ability to attract so as to generate new customer flow. Having one released each summer cannot be sufficient and this needs being improved. The sector has lately sought after manufacturing energy drinks targeting the health-cognizant generation. This incorporates updated ingredients or juice style beverages.
The prospect to go on intensifying in extreme sports remain great, the extensiveness of Red Bull means narrowing opportunities. An example of excellent sports avenues invested in by Red Bull is the New York Red Bulls soccer club. It is possible for the firm to venture into more traditional sports and athletes to connect various sp