The document presents a SWOT analysis of Red Bull, highlighting its strengths such as effective marketing strategies and a strong market share, while identifying weaknesses like high pricing and production limitations. It also discusses opportunities for growth through product line extensions and emerging markets, alongside threats from competition and negative public perceptions. Overall, the analysis emphasizes the need for strategic decision-making to enhance the company's competitive position.

1. Running Head: SWOT Analysis
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SWOT Analysis
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SWOT Analysis
Bobby Holman
Columbia Southern University
December 21, 2015
Company of choice: Red Bull
Introduction
Also referred to as SWOT matrix, SWOT analysis is an
organized method of planning that is used to analyze and gauge
the weaknesses, strengths, threats and opportunities that are
involved in a business venture or a project (Quincy, 2013). It is
a basic framework that is used to generate strategic alternatives
from an analysis of a given situation. This analysis often
appears in business marketing plans and is applicable in either
business unit levels or in corporate levels (Blake, 2015). It can
be done for a product, a person, an industry, or a particular
place. The Acronym SWOT stands for Strengths, Weaknesses,
Opportunities and Threats. Often deploying this framework

2. helps a firm to become fully aware of its position in the
competitive market and also aides in both decision making and
strategic planning. As a company, Red Bull has over the recent
years encountered various challenges including competitive
rivalry which have raised concerns about the overall wellbeing
of the company and its stand in the marketplace. This paper will
be divided into four sections and will attempt to discuss the
strengths, weaknesses, threats and opportunities of the company
through the application of the SWOT analysis.
Section One: The Strengths of Red Bull
The strengths of Red Bull include its marketing strategy, its
geographical presence, category leadership, market share, and
alliances.
Business Marketing Strategy
Red Bull has deployed very tactful and beneficial marketing and
promotional activities which have helped the company to build
a strong foundation and a name for itself. Activities such as
extreme sports sponsorships have helped to increase customer
awareness of the product and also grasp and maintain the
loyalty of customers to the brand. The brand’s marketing
strategy has been magnificently implemented to bring a strong
identity to the brand which brings with it unwavering customer
loyalty.
Geographical Presence
Red Bull’s broad geographical presence has been so strong and
is a major contributing factor to its positive and long-term
growth. This is unlike most other companies in the market
which often stagnate after reaching their maturity stage. The
company’s quick global expansion has worked to earn it an
undisputed position among the world’s leading energy drinks,

3. and despite facing growing competition, Red Bull is still
aggressive in further expanding its customer base and market
share.
Category Leadership
Another one of Red Bull’s astounding strengths has been in its
ability to be consistent in establishing a strong brand global
image which has made it to be strongly identified as an energy
drink in a vast majority of countries. Red Bull does not only
work to establish its brand, it also struggles to maintain it,
which has been successfully done over the years despite rising
competition.
Market Share
Red Bull is also associated with a strong customer base hence a
very large market share, which is also one of its core strengths.
Without its customer base, the brand would not have been as
successful as it has been since its inception. The large market
share brings with it massive net incomes and large volumes of
sales which make the brand dominant and boost its standing in
the market. Furthermore, Red Bull was one of the first energy
drinks to be developed and popularized in the west, making it
synonymous in the cognition of customers.
Alliances and Diversification
Alliances with companies such as Cadbury Schweppes have
helped the company to increase its marketing distribution by
reaching other segments such as hospitals and vending machines
thus increasing its consumer base. The brand is also diverse and
operates in other sectors. It operates and owns a variety of
lifestyle magazines which cover subjects such as soccer,
celebrity news and motor vehicle racing. These two aspects
have greatly influenced the success of Red Bull as a company,
making it what it is today.

4. Section Two: Weaknesses
The weaknesses of Red Bull can be summed up as pricing, being
controversial, production methods, limitations in its product
category, vulnerability to customer preferences
Pricing
The pricing of Red Bull’s product may be a great weakness that
may work to bring the company to its knees, financially. The
pricing of Red Bull’s energy drink is way above the average
price of other regular energy drinks. This price element may
cause customers to rethink their choice of energy drink to
purchase, thus reducing Red Bull’s consumer base which will
work to alter the company’s position in the competitive market.
Having higher prices than competitors will make consumers to
opt for other producers of similar products.
Controversial
The Red Bull energy drink contains relatively high levels of
caffeine and taurine which makes it highly susceptible to
regulatory controls. These controls tend to deviate the product
from its original taste and this may deter the already established
customer base, making them to seek other alternatives to quench
their needs. This a major weakness that will drastically lower
the incomes to the company.
Limitations in product category
Also another weakness that is greatly affecting the company is
the limitation of being highly dependent on one product. This
product is the energy drink. The company fails to be innovative
and create new products that will sustain the company if the
other product fails. This is unlike its competitors who have
multiple products, each of which has the capability of
sustaining the companies in case one product fails. It is also
because of the diversified product portfolio that Red Bull’s
competitors are quickly acquiring larger market shares, hence
gaining on it.
Customer Preferences
This weakness implies that any slight change in the consumers’
taste can drastically affect and weaken the company’s revenue.

5. For example, customers may become more health conscious
with time, preferring to reduce their consumption of caffeine
which happens to be Red Bull’s basic ingredient in its energy
drink. Such an occurrence could negatively affect the company.
Production Methods
Another one of Red Bull’s weaknesses can be found in its
methods of production. All production of the Red Bull energy
drink has always and is still being done from Austria, and the
company has been somewhat reluctant to extend and expand its
production facilities beyond the borders of Austria. This forces
the company to pay considerable export and shipping costs
during the distribution of its products. This reluctance to open
new facilities in other countries and continents constrains the
company’s capacity to increase its production volumes.
Section Three: Opportunities
Despite the company’s weaknesses discussed above, it still has
a number of opportunities to grow and develop further than how
it currently is. Among such opportunities include product line
extension, new emerging markets, diversification etc.
Extension of the Product Line
In this opportunity, the company can decide to incorporate a
variety of new flavors and formats into their current product.
Doing this should assist the company to secure and expand its
already existing market share. However, doing this will require
that the company devises and adapts a product extension
strategy.
New Emerging Markets
There are still large unexploited markets which the company
can decide to venture into. Expanding into such markets holds
promising growth for the company. With this in mind, Red Bull

6. can make a wise choice and decide to accelerate its marketing
sponsorships in such markets.
New Production Facilities
Going outside the borders of Austria may prove to be a wise
move which will make its retail prices more competitive. Large
but weak markets such as Asia should be the top priority for the
company if it wants to increase its production volumes and
eventually its consumer base. Being a major sponsor of popular
sporting events, the company can set up production facilities in
many countries that frequently host sporting events.
Boosting its already effective branding Campaign
Building on the already effective marketing campaign will also
work to increase its consumer base and market share.
Targeting Boomers
Another opportunity to be exploited by the company is new
users other than its youthful customer base. The current
consumer base is made up of mostly youth and school going
individuals. Expanding this base to other older individuals will
also increase its market share.
Reformulation of products
Red Bull can also acquire new customers by cross-pollinating
and coming up with a mix of energy drink and other popular
drinks such as coffee and tea. Having a coffee or tea flavored
energy drink will blur the line between coffee, tea, and energy
drinks and will work to draw in more coffee consumers to the
new product.
Packaging Health Benefits in the Energy drinks
Red Bull could also choose to exploit incorporate health
products into their beverage, thus promising sustained health
benefits on top of energy. They can do this by using other
ingredients, not just sugar and caffeine. This will create
category growth and rouse interest in more potential consumers.
Embrace Content Marketing
Currently, Red Bull operates by not publishing their business

7. strategies. It should however try and embrace creating
storytelling materials which will attract listeners, readers and
viewers to the brand.
Other opportunities open to the company may be to
completely buy off other competitor companies. Red Bull can
decide to offer an irrefutable sum of cash to purchase shares
from competing companies or buying them entirely. This
ensures and secures the company’s survival in the market.
Beside this, Red Bull may also decide to partner with its leading
competitor and jointly manufacture and produce on product
which they can avail to consumers. This will also work to
increase revenues for the company.
Section Four: Threats
Compétition
This threats represents the biggest monster to the company since
it is unpredictable. It is becoming more dangerous since most of
the upcoming companies are really trying to copy Red Bull’s
marketing strategies.
Marketing Costs
Today’s mature markets have made it harder to conduct
marketing in and are increasingly becoming costly to exploit
compared to the past. This threatens Red Bull’s standing in the
market.

8. Negative public image
Red Bull has been grossly affected by negative publicity being
portrayed by the media. It has been regarded as being harmful
especially to teenagers if consumed in large quantities. This
threatens the survival of the product since a majority of its
consumer base is made up of teenagers and the youth
population.
Stale Product
Red Bull’s chief product is at the risk of eventually coming to
be stale in the market. Because the market for the company will
soon become saturated, it will become increasingly difficult to
appeal to core customers further on.
Decline of the North American Economy
North America is Red Bull’s stronghold in terms of market base
and the decline in its economy means reduced demand from
consumers, for the product. Reduced demand means reduced
revenues for the company.
Increased Health Concerns
The sugar content of the Red Bull energy drink has raised
serious concerns from the public regarding the health
implications associated with the drink. These concerns have
dampened the company’s promotional efforts and have worked
to reduce the consumer base from the company.
Product tampering
The company also faces the threat of product tampering by
criminals or individuals with vendettas against the company. A
good example of this threat is the recent occurrence where
someone blackmailed the company and threatened to
contaminate the energy drinks with faeces. Such threats usually
work against the company if they ever come to fruition.
Patent Issue
The fact that the company has no patent rights to its product
means that it cannot sue any individual or company that tries to
reproduce their product. This is a big threat that will definitely

9. discredit the company and will lead to its downfall.
Other minor threats that may face the company include lawsuits
from companies that have patent rights to the company’s
product. Such lawsuits will drain the company of its finances
and may force it to close down. Another threat nay be
corruption and mismanagement of the company.Références
Blake, M. W. (2015). 5 Tips to grow your stat-up using SWOT
analysis. Sydney.
Quincy, R. (2013). SWOT Analysis: Raising Capacity of your
Organization. Rutgers School of Social Work.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C.
E. (2015). Concepts in strategic management and business
policy: Globalization, innovation, and sustainability (14th ed.).
Upper Saddle River, NJ: Pearson
Assignment 3: CASE STUDY
It should be presented in an essay format with appropriate
headings/sub-headings including an Introduction and a
Conclusion.
Students are therefore strongly advised to read and follow the
assessment criteria closely. Students should also familiarise
themselves with the University’s policy on late submission of
coursework and plagiarism.
Read the following case study carefully:
CASE STUDY
DELIVERING EFFECTIVE TRAINING
Simon Heng, Training Manager, looked at his watch and said,
“It is 5 pm and I would like to close this workshop. I will see
you again next week.” As the participants left the room,

10. someone asked if Simon wanted to join them for a drink but
Simon turned them down, saying that he needed to pack and
finish off some work.
Watching this was Serene Teo, the new HR Manager, who is
Simon’s boss. Serene was obviously not happy about the way
the training was conducted – she has seen trainers like Simon
putting up a show with plenty of jokes during training and
accomplishing nothing. Participants loved this as a form of
entertainment and therefore seldom took the training seriously.
Serene then spoke to Simon, “Hi, Simon, I would like to have a
word with you.”
“Sure, what would you like to talk about,” replied Simon as
they both walked out of the training room.
“I would like to talk about the next course. I need to know how
you are going to deliver the next one since management wants
us to prove that training will help improve performance. What I
have seen so far does not appear to be delivering on this
expectation,” said Serene.
“Well, I personally believe that I am doing a good job. The
participants love me and the training evaluations are always
very positive. Some participants even say they enjoy coming to
my course very much. I believe I am doing a great job here,”
Simon replied almost proudly.
“The end of course evaluations say nothing of how effective
your course is. We need to show top management that your
course has an impact on people’s performance,” replied Serene.
“We have to start doing this or we lose our jobs.”
Discuss the case, with specific attention to the following issues:

11. · Measures to be used to evaluate Simon’s training
· Management’s expectation from a training program
· How to measure Simon’s effectiveness as a trainer
Assessment Criteria For Assignment 3 (important!)
· Word limit: 1500 – 2000 (+/- 10%) words presented in essay
format with clear headings/sub headings as desired, including
an Introduction and a Conclusion.
· Essay should be type written according to the following
format:
· Arial font type with 11 font size with 1.5 spacing
· Pages should be numbered and printed only on ONE side
· Text should be aligned to both left and right in JUSTIFY mode
· References and Appendices should be presented on separate
pages
· Critical analysis of the situation with incisive discussion,
giving an indication of complete comprehension of
concepts/theories/models
· The quality of your evaluation, decisions, recommendations
and arguments presented
· Technically accurate description of theories, concepts and
models in relation to the case in question
· Appropriate application of theory and practice with 5 – 8
relevant references, using the Harvard Reference System
· Clear structure with ideas and arguments developed in a
logical and coherent fashion
· Assertions substantiated by evidence from the literature and
where possible, supported by organisational examples
· Grammar, syntax and spelling appropriate to academic
standards
· Overall professional presentation