International Business Across Border Report 2022

INTERNATIONAL BUSINESS
ACROSS BORDERS

1
Executive Summary
Energy drink market is expanding in all across the globe and this provides an opportunity for
the company that is operational at global levels such as Red Bull. In this report there is
illustration of the foreign market entry strategy used by the Red Bull. It was found that
company took partnerships and direct export as a major foreign market entry strategy. This
report highlights the competitive dynamics of Red Bull where it was found that Expanding
business, Innovation, Healthy products; Structural changes, adding more investors and
Changes in production strategy are some of the activities that is adopted by the Red Bull so as
to enhance its competitive dynamics. It was also found in the report that the market condition
of Red Bull is illustrated by the fact that There is higher Competition in the industry, Political
and legal regulations are making it difficult for Red Bull to do their business, competitors are
reducing cost of products, there is downfall in the economy, aggressive marketing in the
industry, emerging markets have higher scope for Red Bull like products, Sustainable
management and marketing is in practice. For the knowledge management this company is
taking the help of the IT companies that have great infrastructure for knowledge
management. Innovation at Red Bull is a regular process where they are making innovations
in every aspect of the business.

2
Content
s
Introduction............................................................................................................... 2
Foreign market entry strategy......................................................................................... 2
Competitive dynamics and market conditions.....................................................................3
Organisational structure................................................................................................ 6
Knowledge Management............................................................................................... 8
Innovation................................................................................................................. 8
Conclusion................................................................................................................ 9
References................................................................................................................ 9

3
Introduction
Beverage industry in the world is becoming highly competitive day by day. In the start there
were only few companies that were dealing in different beverage market but now there are
large numbers of firms that have emerged and are stealing market from the already
established companies. Red Bull is one of the best energy drinks company in the world but in
today’s market it is facing tough competition from many other firm. With the increasing
demand of the energy drinks all across the globe, Red Bull has better opportunities to expand
their business all across the globe. In this regards the role of innovation is critical along with
the strategies that are made by the firm for its success (Gorse, Chadwick and Burton, 2010).
There are many other internal factors such as organisational structure that has impact on the
operations and performance of the company. Red Bull is an Austrian energy drink company
established in the year 1987 and has highest market share of any energy drink company in the
world. This report highlights the foreign entry strategy, competitive dynamics, Organisational
structure, knowledge management strategies and the innovations that are Red Bull is doing.
Foreign market entry strategy
Companies all across the globe are crossing borders to make sure that they have new routes
for generating revenues. Multinational organisations have to be very specific about the
strategies that they are going to select while entering into the foreign markets. Specific
strategy that they are going to choose for expansion needs to be on the basis of the market
conditions and the opportunities that are available in the market (Ahmad, Musa and Harun,
2016). Choosing wrong entry mode strategy might have an impact on the overall operations
of the firm at the global levels. The selection of the foreign market entry must also be on the
basis of the resources and capabilities of the firm so that they can make it feasible for the
company to adopt and apply these strategies to gain success in the foreign market and to
achieve desired outcomes from that country. Red Bull also has applied different strategies
while entering into different markets however the company focuses on its unique idea to enter
into the foreign markets.
Red Bull entered into the United States market with the help of the internationalisation
strategy i.e. partnership. They did partnership with company Ozburn-Hessey to manage their
product outsourcing in the United States. Ozburn-Hessey logistics is a third-party logistics
firm that is helping Red Bull with transportation service and warehousing. This was an