SWOT Analysis of Red Bull: Strengths, Weaknesses, Opportunities, and Threats

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Added on 2024/07/24

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This SWOT analysis delves into the strengths, weaknesses, opportunities, and threats facing Red Bull, a global energy drink giant. It examines the company's market leadership, brand image, and marketing strategies, while also highlighting its limitations in product diversification and potential health concerns. The analysis explores opportunities for growth in emerging markets and through CSR initiatives, but also acknowledges the challenges posed by regulatory scrutiny and increasing competition.

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SWOT ANALYSIS FOR RED BULL COMPANY
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Table of Contents
Introduction.................................................................................................................................................3
Discussion................................................................................................................................................... 3
Conclusion................................................................................................................................................... 4
References................................................................................................................................................... 5
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Introduction
Red Bull has been successful in creating a strong brand image with a colourful icon and two
bulls in opposition and an interesting tagline as “Red Bull gives you wings”. The company has
reached out to the youths through its creative marketing strategies and associating itself with
music, art and sports. It was launched in 1987 in Austria and is one of the European success
stories. Competitive rivalry is increasing and there are concerns that the product is detrimental to
health and adolescent behaviour.
Discussion
The major strength of Red Bull is its market leadership in global scale. It was the first energy
drink that became popular in the West and has sold around 6.3 billion cans in around 171
countries in 2017. Red Bull focuses on expanding its business in the international market and the
top markets that sold the brand are Turkey, India and Netherlands In 2017, Red Bull’s sales have
increased by 35% in India, South Africa and Turkey. According to the reports published by
Forbes, Red Bull is ranked 74 among the most valuable brands in the world. Red Bull also
operates variety of lifestyle magazines that covers issues like celebrity gossip and sports. The
marketing strategies incorporated by Red Bull has been impeccable and focused on sports
sponsorship like motorcycle racing (Teigeler and Hahne, 2014).
In terms of soft drinks market, Red Bull is far behind popular brands like Pepsi Co and Coca
Cola. The product range of Red Bull is limited to only five drinks like Red Bull energy drink,
Red Bull Zero Calories, Red Bull Sugar Free Red Full Simply Cola and Red Blue Editions
(tropical, blue, orange). Thus, it fails in producing diversified product portfolios. Contrarily,
Monster, the competitor of Red Bull has almost 30 different brands. The company has also failed
to aggravate its production volumes and offer variety of products in the market.
Red Bull has an opportunity in boosting its presence in media through strategic collaborations
and is also increasing its focus on Corporate Social Responsibility (CSR). Red Bull is using
aluminium cans that are recyclable and saves raw materials and protects the environment from
depletion of resources. The company has also started “Wall to Wall” production to save
resources which means that the cans are manufactured and filled at the same site, thereby
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reducing transportation cost and footprints significantly (Seitz, 2016). Added to this, market
research predicts that by 2018, Red Bull will expand its business to the Chinese market.
The biggest threat of Red Bull is that it is not approved by FDA. The scientists have found out
that there is high amount of sugar and caffeine in Red Bull which is detrimental to health. Other
threats associated with Red Bull are increase in the marketing costs, rise of the competitors and
lawsuits against the company due to its health deterioration drinks (Kavitha and Reddy, 2016).
Conclusion
Thus, it can be concluded that although Red Bull has captured the market and expanded
internationally, it is threatened for its unhealthy products that are detrimental to the health. Red
Bull needs to bring variations in energy drinks that are nutritious and healthy to reach out to the
targeted and potential customers.
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References
Kavitha, N.V. and Reddy, N.S., 2016. Buzz Marketing-SWOT Analysis. International Journal of
Innovative Research and Development, 5(2).
Seitz, P., 2016. A strategic analysis on the New York Red Bulls.
Teigeler, J. and Hahne, A.K., 2014. Market Analysis of Red Bull based on the countries
Germany, Switzerland and Austria.
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SWOT Analysis of Red Bull: Strengths, Weaknesses, Opportunities, and Threats

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