Swot Analysis: SWOT Analysis Of Red Bull

Strengths: After reading more about Red Bull, I began to notice their success as a company. Their strengths include their marketing and distribution power. Since the beginning, Red Bull has always paid close attention to their branding strategies. “The importance Red Bull gave to marketing was obvious from the fact that it spent over 30% of its annual turnover on marketing, while competitor’s only spent 10%” reported the Amity Research Center. Along with branding, differentiation was used with the can sleek style and creative logo. This was nothing like the world has ever seen, ultimately creating a unique brand for themselves. Red Bull has a large global presence, which creates a better net worth for the product. In addition they

How has Red Bull been able to create and sustain a competitive advantage? Suggest a strategy or idea that Red Bull can use to remain competitive in the industry. What could Red Bull do to expand from being a “luxury and sports drink”?

Red bull has been the forefront of the energy drink industry because of its well-developed marketing and advertising plans. Red Bull earns their competitive advantage by using lifestyle, music, and culture to their advantage, mentions the ARC. Red Bull is the energy drink trendsetters in my opinion, they are the leaders in their industry leaving others to follow. They also use their branding as a great selling point. Their products have a sleek design, and they also use relate-able people to give samples to potential consumers. Strategies such as these keep them ahead of competitors.

However, to increase their brand, Red Bull can actually branch out into sportswear for the extreme activities they sponsor. For example, they can create gloves and helmets for the motor bikers, insulated coats and goggles for the snowboarders, and oxygen tanks for the snorkelers. This would be a major investment to their already profitable business however it might be difficult for consumers to take this expansion seriously. They can expand under the impression that Red Bull gives you wings, and will be even more beneficial on the slopes. If they use similar marketing schemes as they did with the energy drink, I am confident in their abilities to pull this expansion