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Red Bull SWOT Analysis

Red Bull is a global market leader in energy drinks but faces some weaknesses and threats. It has strong brand recognition and financial position due to sales of over 5.9 billion cans in 2015 across more than 169 countries. However, concerns over the health effects of ingredients in Red Bull products and a limited product range are weaknesses. Potential threats include further health lawsuits and intensifying competition in the growing energy drink industry.

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1K views

Red Bull SWOT Analysis

Red Bull is a global market leader in energy drinks but faces some weaknesses and threats. It has strong brand recognition and financial position due to sales of over 5.9 billion cans in 2015 across more than 169 countries. However, concerns over the health effects of ingredients in Red Bull products and a limited product range are weaknesses. Potential threats include further health lawsuits and intensifying competition in the growing energy drink industry.

Uploaded by

Haroon Fareed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Red Bull SWOT Analysis

Strengths Weaknesses
1. Market leadership in the global scale 1. Red Bull products considered to be
unhealthy
2. Increasing popularity in emerging markets
2. Limited range of products
3. Strong and visionary leadership by Dietrich
Mateschitz 3. Expensive price
4. Solid financial position 4. Concentrated production facilities
Opportunities Threats
1. Enhancing nutritional aspects of beverages 1. Negative health implications due to the
consumption of Red Bull products
2. Further increasing presence in media via
strategic collaborations 2. Increase in marketing costs
3. Engaging in product diversification 3. Further intensifying competition
4. Increasing focus on CSR 4. Lawsuits against the company due to
consumer health deterioration
Table 1 Red Bull SWOT analysis

Strengths
1. Red Bull is sold in more than 169 countries and about 60 billion cans of Red Bull
have been consumed so far. The company sold more than 5.9 billion of cans in 2015
alone. Market leadership in the global scale is an indication of a considerable
strength from the viewpoint of the brand equity and consumer loyalty.
2. Red Bull is engaged in international market expansion with a focus on emerging
markets in an aggressive manner. In 2015, Red Bull sales in Turkey, South Africa
and India increased by 25 per cent, 19 per cent and 18 per cent respectively. The
current strategy of increasing presence in developing countries is set to contribute
to the long-term growth prospects of the business.
3. Dietrich Mateschitz is a proven visionary leader who had to deal with multiple
obstacles during his pursuit of making Red Bull an undisputed market leader in
energy drink segment around the globe. Innovative ideas of Dietrich Mateschitz for
the further development of the business are far from being dried and point marks
one of the noteworthy strengths of the brand.
4. Red Bull is No.74 the most valuable brand in the world with the brand value of USD
7.9 billion according to Forbes. In 2015 alone the company generated EUR 5.903
billion, a 15.5 per cent increase compared to the previous year. Solid financial
position is a strategically important strengths in terms of enabling the company to
engage in research and development to enhance long-term growth prospects of the
business.
Weaknesses
1. Red Bull consumption has been linked to the cases of health deterioration and in
some occasions with fatal outcome for consumers. These include the cases of
Australian Matthew Penrose’s, whose heart stopped after consuming 8 Red Bulls
within 5 hours in 2007 and 33-year-old Cory Terry, from Brooklyn, whose dealt
was linked to regular Red Bull consumption in 2011. While the actual extent of the
role of Red Bull to the deaths of these people is a debatable matter, there is
consensus that overconsumption of the energy drink will have negative health
implications. This is because each can contain 80 milligrams of caffeine along with
taurine (0.4pc) and pantothenic acid (B6, B12) – substances that impose risks to
health if consumed in more than moderate quantities.
2. The company’s product range is limited to the following four groups:
1. Red Bull Energy Drink
2. Red Bull Sugar Free
3. Red Bull Zero Calories
4. Red Bull Editions: tropical, blue and orange editions
5. Red Bull Simply Cola
A lack of choice for customers can be a considerable weakness taking into account the
increasing level of customer expectations and a growing popularity of product
customization according to consumer needs and preferences.

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