Red Bull Swot Analysis

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Introduction
There have been drastic changes in the market conditions during the recent past due to which many companies have revised and are revising and reassessing their marketing plans and strategies to remain competitive and to gain more competitive edge. The energy drink industry has been in a very fast growth over the recent period and many companies have launched their brands and some of them have been very successful in a very short span of time and one of those brands is Monster Energy. Monster Energy is a brand of energy drinks owned by Monster Beverage Corporation which was introduced in 2002. To assess and redesign or improve the marketing strategy, a company has to conduct a detailed strategic analysis which includes internal …show more content…

The company has a very high level of production and it sold over 5.387 billion cans worldwide in 2013 (Red Bull, n.d)(4) which was only possible through very efficient production facilities of the company. Red Bull has a very huge strength and a distinguishing feature that it is financed through operating cash flows (Red Bull, n.d)(4) which means that the cost of financing are very less due to which the company enjoys high profit margins.
SWOT Analysis
SWOT is an abbreviation which stands for Strengths, Weaknesses, Opportunities and threats. This is a very comprehensive analysis of any company and gives a very detailed explainaition about the company’s strategic direction and how well is the company achieving its strategic goals and what should it do in order to achieve a higher competitive edge. It is recommended that a company should try to minimize its weaknesses and uses its strengths to take full advantage of the opportunities and minimize any potential or existing threats. These four aspects will be discussed in detail. …show more content…

There have been many competitors entering this market and the product lifecycle of these typical energy drinks is now near to maturity phase which means that the product may show reduce in sales and the customers may switch towards other more innovative and demanded products.
There have been many health issues with energy drinks and its consumption has been banned in Denmark and Norway and in Kuwait it is banned for less than 16 year olds in reaction to two deaths caused by the products (Red Bull, n.d)(6). The ingredients used, as told before, are very harmful and could be fatal if consumed in larger quantities. This has deteriorated the image of the brand such issues keep on arising which can significantly reduce the sales of the

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