Understanding Strategic Management - Red Bull Company

Domeniu: Management

Conține 1 fișier: docx

Pagini : 21 în total

Cuvinte : 4116

Mărime: 170.86KB (arhivat)

Publicat de: Henrieta Alexe

Puncte necesare: 9

Profesor îndrumător / Prezentat Profesorului: Jenny Fairbass

Descarcă acum

Cuprins Extras Bibliografie Preview

Cuprins

1. Business mission 3
2. External Environmental analysis 3
2.1a Market definition and size 3
2.1b Market growth 3
2.1c Market share 4
2.2 PESTEL Analysis 4
2.3 Porter’s Five Forces 5
2.3a.Threat of new entrants: 5
2.3b.Bargaining power of buyers 6
2.3d. Threat of substitutes 7
2.3e. Threats of competitive rivalry 7
2.4 Key Factors for success in an industry 8
2.4a. Customers 8
2.4b Competition 9
2.4c. Corporation 9
3. Internal resource analysis 9
3.1 Architecture 10
3.2 Reputation 10
3.3 Innovative ability 11
4. SWOT Analysis 11
5. Strategy Formulation 13
6. Appendixes 15
7. References 19

Extras din proiect

1. Business mission

Red Bull’s mission is clear and succinct: ‘Leading the energy drinks market. Becoming the number 1 Beverage Brand.’ The role of the business mission is to represent the organisation’s purpose and objectives, and it is clearly stated above. Moreover, the statement should be realistic and attainable, and this is going to be developed in the body of the report .The slogan ’Red Bull gives you wings’ represents the brand positioning and has an impact upon the behaviour of individuals throughout the business (Lynch, 2010). The distinctive advantages and benefits of the product are reflected by the statement: Red Bull ‘Vitalizes Body and Mind’. The slogan is exclusively owned by Red Bull (redbull.com), and summarizes all the associations, desires, images and emotions that come into the mind of a consumer when he/she sees a can of Red Bull.

2. External Environmental analysis

In order to analyze the environment of the company, it is useful to begin with the basics factors like market definition and size, market growth and market share.

2.1a Market definition and size

The energy drink market is considered a niche within the soft drinks category, and it is one of the most dynamic soft drinks category segment (Zenith, 2009). In 2009 Red Bull sold 3.906 billion cans worldwide (redbull.com). Red Bull had a turnover of 3.268 billion in the business year 2009 Euro, and it almost maintained same level with the one in 2008, 3.323 billion Euros. Moreover, the company had a rise in productivity and profit in 2009 (redbull.com).

2.1b Market growth

The consumption of energy drinks is continuing to rise due to the lifestyle of young adults, who represent the main customers, the sales and marketing success of the market leaders. The compound annual growth rate in the period 2003-2008 was 14.0% (Zenith, 2009). According to the Zenith report the global energy drinks market should grow by 8.8% during 2010, 8.3% in 2011, 7.7% in 2012 and 7.0% in 2013. Total global energy drinks consumption is forecast to reach 5,760.1 million liters in 2013 (please see Appendix 3).

2.1c Market share

An analysis of the market share for the Red Bull company and its main competitors is included in the Appendix 3. A relevant fact that needs to be taken into consideration is that the world’s energy drink markets are at different stages of maturity -some of the markets are in the growth phase and others in the maturity phase- (Zenith, 2009).

2.2 PESTEL Analysis

The PESTEL framework provides a useful starting point to analyse the general environment surrounding the Red Bull company. One of the drawbacks of using this particular tool is that it provides only a checklist of the main factors affecting the business environment, without taking into account the degree o turbulence or the market share.