Gatorade Supply Chain Analysis: Market Share, Competition, and Potential

Gatorade

Competition and
Rivalry
The energy drink market in the world right now is
large with its major proportion being concentrated in
the markets of the US. The net worth of this market
is estimated to currently be at a level of around 84.80
billion dollars.
The major competitors of
Gatorade include Monster
Energy, Powerade and
other small brands. In
fact, operating specially in
the sports drink industry
has led the company to
accrue added advantage
in terms of competition.
The advantage of
Gatorade lies in its ability
to innovate not only in
terms of customization
and different kinds of
flavors but also in terms of
the marketing and
innovation of the
containers which attract
an even greater number
of consumers. The best
example of this form of
innovation include the
option of smart caps
unlike most other energy
drink firms
The firm has also been
efficiently involved in
producing products that
are organic and contribute
towards fitness and
health.

Market Share and
Threats from New
Entrants
Marke
t
Share
• The market share for
Gatorade in the energy and
sports drink industry is
currently estimated to be at
a level of around 52.8
percent with the revenue
generation of the firm
amounting to almost 3.3
billion USD. In fact the firm
is worth a total of 4.8 billion
USD and has been able to
capture a total of 70% of
the entire market.
Threats
From
New
Entrants
• As can be estimated from the
market share, Gatorade is not
faced with a lot of threat from
new competitors primarily
because of the brand value
that it possesses and the
ability of the firm to have
attracted the target market of
professional athletes and the
health conscious population
across the world at large.
Moreover, the new entrants
will not be able to incur the
costs needed to not only
produce such customized
product but also gain brand

Bargaining Power
Consumers and Producers
Gatorade as a
firm is exposed to
very low
bargaining power
on the part of the
suppliers as there
are a lot of
suppliers for the
energy drink
industry and the
firm also has the
added advantage
of being the top
player in the
sports drink
energy.
Due to the
absence of
potential
substitutes the
bargaining power
of the consumers
is also very low
and the brand
value of the firm
adds to this.
Further, this good
does not
constitute a
major portion of
the consumer’s
income causing
them to take the
price level
decided by the
firm itself.