California Miramar University
1. What is the basis of Red Bull's competitive advantage in the energy drinks market?
Red Bull’s success is largely credited to its innovation capabilities. Red Bull is launched in 1987 when there is no similar product in the market. This provides a sound foundation for Red Bull to obtain the biggest market share when it comes more and more popular in the world. Red Bull uses its unique marketing strategy to build its own distribution network. The founder guide Red Bull to focus on traditional retail outlets and filling stations. In addition, it sponsors sporting events that make its brand name more well-known to the public. Red Bull’s strategy make itself controlled about two-thirds of the energy drink market. 2. Why energy drinks market is attractive for Coke, Pepsi, and Anheuser Busch?
In the late 1990s, Red Bull’s worldwide sales were $483 million. Because Coke, Pepsi, and Anheuser Busch know energy drinks have high margins and premium prices, they foresee the high potential of developing the energy drinks in world wide. Therefore, the giant drinks makers all want to produce their own energy drinks to share the market with Red Bull. 3. Why is Coke so timid in responding to Red Bull? Is KMX a serious threat to Red Bull?
For my opinion, Coke is using the indirect strategy to attract their targeted customers. On one hand, since Red Bull already developed a steady network of…