Commerce Project 1
Commerce Project 1
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External Examiner’s Certificate
Date:
Kolkata Signature of External Examiner
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Internal Examiner’s Certificate
Date:
Kolkata Signature of Internal Examiner
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Preface
It gives me immense pleasure to present this project on SWOT Analysis for the
year 2026 which we have received from the Indian School Certificate (ISC)
Council. I have used technology to provide adequate information keeping in
mind the guidelines provided by the ISC Council. This year, the Council has
given us the project specifying that it should include a Conceptual Framework of
the SWOT Analysis of two companies.
I believe that knowledge is never complete and one remains a student throughout
their life. I therefore request readers to bring to my notice the shortcomings and
errors, if any, in the project.
I thank my teachers for their untiring efforts in guiding us with the project.
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SWOT ANALYSIS
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Table of Contents
Unit Sub-Heading Page Number
Chapter 1 Introduction 11
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Chapter 5 Conceptual Framework 23
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5.2.8 Key Activities 38
5.2.9 Channels of 38
Distribution
5.2.10 Value Proposition 38
5.2.11 Target Audience 39
5.2.12 Corporate Social 40
Responsibility
Chapter 6 Graphical 41
Representation
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8.2.1 Strengths 52
8.2.2 Weaknesses 53
8.2.3 Opportunities 53
8.2.4 Threats 54
Chapter 9 References 55
9.1 Webliography 56
9.2 Bibliography 56
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Acknowledgement
“It is not possible to prepare a project report without the assistance &
encouragement of other people. This one is certainly no exception.”
On the very outset of this project, I would like to extend my sincere & heartfelt
obligation towards all the people who have helped me in this endeavour.
Without their active guidance, help, cooperation & encouragement, I would not
have made headway in the project.
I am extremely thankful and pay my gratitude to my Commerce teacher, Mr.
Chitrasen Bhattacharya for conscientious valuable guidance and support on this
project on “SWOT Analysis”
I extend my gratitude to my institution, Sri Sri Academy, Kolkata and its
principal, Mrs. Gargi Banerjee for giving me this opportunity to do this project.
I also acknowledge with a deep sense of reverence, my gratitude towards my
parents and friends who have always supported me morally.
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INTRODUCTION
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1.1 What is SWOT Analysis
Opportunities and threats, on the other hand, are external factors. Opportunities
are elements of the external environment that management can seize upon to
improve business performance (like revenue growth or improved margins).
Threats are elements of the external environment that may endanger a firm’s
competitive advantage(s), or even its ability to operate as a going concern (think
regulatory issues or technological disruption).
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1.2 Features of SWOT Analysis
1. Strengths:
Strengths involve a strong brand, a dedicated client base, a solid balance sheet,
innovative technology, etc., demonstrating what a firm excels at and what sets it
apart from its competitors. For instance, a hedge fund could have made a
proprietary trading process that outperforms the market. The next step is
determining how to exploit the outcome to attract additional investors.
2. Weaknesses:
Weaknesses are areas or traits where a company is less competitively beneficial
than its competitors. A lousy brand, higher-than-average turnover, high levels of
debt, an insufficient supply chain, or a lack of cash are areas where the company
has to improve to remain competitive. These may be more qualitative or
quantitative, just like strengths.
3. Opportunities:
The “Opportunities” section requires attention to outside elements that may help
a firm expand or develop. A rising total addressable market (TAM), technology
developments that may lead to maximizing efficiency, or modifications in
societal norms generated by new markets or new sub-segments of recent
markets are examples of opportunities to take into account.
4. Threats:
Threats are elements which pose threats to an organization’s operations. Though
oriented differently, the categories frequently resemble those in the
“Opportunities” section. Examples involve a declining industry (the same as a
declining TAM), technical advancements that might disrupt an existing
company’s operations, or changed societal standards that create current product
offers less appealing to a maximizing proportion of customers.
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NEED AND OBJECTIVES OF
THE STUDY
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2.1 Merits of SWOT Analysis
1. Simple and Straightforward Process- SWOT analysis does not require
technical expertise or formal training. Instead, anybody with an
understanding of the organization in a situation and the sector in which
it operates can conduct it.
The procedure includes facilitating a brainstorming session where the four
SWOT analysis elements are explored. As a consequence, the opinions and
judgments of the individual participants are combined to form group opinions
that the whole group supports. In this manner, each person's expertise
contributes to the accumulated knowledge.
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LIMITATIONS OF THE STUDY
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3.1 Demerits of SWOT Analysis
3. High Cost- A significant drawback of SWOT analysis is its high cost. This
is true because it takes a lot of resources-including time, money, and
personnel- to do a successful SWOT analysis. Access to outside consultants
or experts can also be necessary.
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Even with these tools, it might be challenging to complete a thorough SWOT
analysis that considers all pertinent elements. For small enterprises or groups
with tight resources, the expense of the analysis may be unaffordable.
Furthermore, the analysis' findings could not be precise or thorough enough to
allow for decision-making.
SWOT analysis is largely a diagnostic tool, not a therapeutic one. It doesn't offer
any detailed advice on how to take advantage of the opportunities and eliminate
risks that may have been recognized. The identified strengths, weaknesses,
opportunities, and dangers are not given any method of prioritization.
Organizations may therefore find themselves with a huge number of feasible
tactics without any idea of which to concentrate on. Moving from analysis to
action may become challenging as a result.
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LITERATURE REVIEW
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According to Kotler and Armstrong (2008): -
According to Rangkuti: -
“SWOT analysis is an effort carried out based on logic that can maximize
strength and opportunity, and at the same time can minimize weaknesses and
threats. This analysis aims to identify various factors systematically to
formulate the company's strategy.”
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According to Michael E. Porter: -
“The essence of formulating competitive strategy is relating a company to its
environment. Although the environment is very complex, comprising many
dimensions, it is also relatively predictable. This is important because the
company's strategy must fit not only its internal situation but also its external
environment. Two tools useful in analyzing company's external environment
are the Five Forces framework and SWOT analysis.”
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CONCEPTUAL FRAMEWORK
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CASE I
The Coca-Cola Company
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5.1 The Coca-Cola Company
The company was founded in Atlanta, Georgia. It was Pharmacist Dr. J.S
Pemberton who invented Coca-Cola. The same day, the new product was sold as
a soda fountain drink for five cents. After mixing Carbonated water into it
Pemberton finally created what today is regarded as the best soft drink -Coke.
Following the death of Dr. J.S. Pemberton in 1888, all of his remaining rights to
the product were purchased by G. Candler, a druggist and Atlanta businessman.
Mr. Candler recognized great potential in Coca-Cola and went on to acquire
complete control for $2300 in 1891.
The trademark ―COCA-COLA was first registered in United States Patent
office on January 31st, 1893, and has been renewed periodically. That same
year, the first dividend was paid to the shareholders.
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5.1.2 Products
1. Diet Coke 6. Fresca
2. Coke II 7. Tab
3. Sprite 8. Mr. Pibb
4. Cherry Coke 9. Minute Maid
5. Fanta Brand 10. Power Ade
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5.1.4 Business Segment
Coca-Cola operates in four geographical areas and two non-geographical
areas:
The flagship of the company in North America. The market is valued at
$215 billion and has a consumption of about 370 million.
Latin America has over 650 million consumers covering 39
distinct marketplaces and providing over $72 billion in value.
This category is valued at $220 billion, with around 2,8 billion consumers
throughout Europe, the Middle East & Africa, which comprises 130
distinct markets.
The market in Asia-Pacific has a total of 4 billion customers. A total of
32 marketplaces generates a total value of $280 billion.
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5.1.5 Revenue Model
The sale of a variety of drinks, including sparkling soft drinks, water, reinforced
water, and sports beverages and juices, milky beverages as well as plant
beverages and energy beverages, are the source of Coca-Cola income. In the
whole year, revenues are predicted to grow by 9.3% from 31.9 billion dollars in
2018 to 34.8 billion dollars in 2019 and by 4.7% to 36.5 billion dollars in 2020.
The growth in nearly all key areas will likely create higher revenues compared
to slightly smaller revenues from the transportation business. The firm
announced several major acquisitions by 2018 such that Costa Limited and a
Strategic Partnership with BODYARMOR will further drive revenue growth
through Coca-inorganic Cola’s development initiatives. The new company,
which is a rapidly increasing leader in drinking categories, including juices,
value-added dairy, and ice tea, has recently announced its acquisition of full
ownership in Chi Ltd. in Nigeria.
The Coca-Cola marketing strategy is not just a plan for marketing and promoting
their product. It is all a part of a person’s needs. They maintain that connection
with their customers and always plan according to the response from the public
and media. This helps them design a strategy that helps them never lose their
customer volume.
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5.1.7 Market Share
Coca-Cola holds a 43.7% market share of global sales in the non-alcoholic
beverage industry. Thus, Coca-Cola has a commanding lead over its competitors,
with nearly half of the global sales in the industry. This statistic is a clear
indication of the company’s success and its ability to remain a leader in the
industry. Coca-Cola’s revenue was approximately 33 billion U.S. dollars in
2020. It shows that the company was able to maintain its strong presence in the
market and continue to generate revenue. This is a great indicator of the
company’s resilience and its ability to adapt to changing market conditions. The
Coca-Cola Company sold 28.2 billion-unit cases of its products in 2020.
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5.1.9 Channels of Distribution
Restaurants Events
Vending machines Television
Stores Posters
Supermarkets Emails
Website Leaflets
Social Media Billboards
Snapshots PR activities
Newspapers Magazines
Promotion Campaigns Radio
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5.1.11 Target Audience
In general, Coke has no special goal and is aimed at all. The brand is
nevertheless able to reach the main consumers aged 12-23. Although the brand
cannot reach them through partnerships, such as restaurants, fast foods, like
McDonald’s, or due to its value for its consumers, even if there are no specific
products or communication at least 12 or more than 30 years old. Coca-main
Cola’s target audience is young people or young people. Their goal is not
gender-based, but the results indicate that both sexes like and use this product
(nearly 50/50).
Finally, each customer is regarded as a target and a potential consumer by Coca-
Cola.
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CASE II
Red Bull
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5.2 Red Bull
5.2.1 History
Red Bull is an energy drink created by Austrian entrepreneur Dietrich
Mateschitz in collaboration with Thai businessman Chaleo Yoovidhya. It was
first introduced in 1987 in Austria and then later in other European countries.
The idea for Red Bull originated from Mateschitz's travels to Thailand, where he
discovered a popular energy drink called Krating Daeng, which was developed
by Yoovidhya. Mateschitz teamed up with Yoovidhya to modify the formula for
Western tastes, and Red Bull was born.
Today, Red Bull is one of the best-selling energy drinks worldwide, with a
presence in over 171 countries. It has diversified its product line with variations
like sugar-free and flavoured options. Additionally, the brand continues to invest
heavily in marketing and sponsorship, maintaining its association with extreme
sports and high-performance activities.
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5.2.2 Products
Red Bull Cola Red Bull Silver Edition
Red Bull-Sugar Free Red Bull Red Edition
Red Bull-Energy Shot Red Bull Blue Edition
Red Bull Total Zero Red Bull
Moreover, Red Bull's global expansion and strategic partnerships have played a
crucial role in its success. By entering diverse markets worldwide and forging
alliances with key players in sports, entertainment, and culture, the company has
been able to extend its reach and influence. These partnerships not only enhance
brand visibility but also reinforce Red Bull's association with high-performance
lifestyles.
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5.2.4 Business Segment
Red Bull primarily operates within the energy drink segment of the beverage
industry. Energy drinks represent the core business segment for Red Bull, with
its flagship product being the original Red Bull Energy Drink. This segment
focuses on providing consumers with a convenient and potent source of energy
and stimulation, typically containing ingredients such as caffeine, taurine, and
B- vitamins.
Additionally, Red Bull has diversified its product offerings within the broader
beverage market. This diversification includes the introduction of various
product lines, such as sugar-free versions of its energy drink, flavoured variants,
and specialized editions with different formulations or packaging. These
extensions allow Red Bull to cater to different consumer preferences and
expand its market reach beyond its traditional energy drink segment.
Furthermore, Red Bull has ventured into related industries and segments through
strategic partnerships and brand extensions. For example, the company has
collaborated with other brands to develop co-branded products, entered the
market for sports and lifestyle apparel, and invested in media production and
content creation. These initiatives broaden Red Bull's presence and allow it to
leverage its brand equity across multiple business segments while staying true to
its core identity in the energy drink market.
3. Brand Extensions: While the original Red Bull Energy Drink is the core
product driving revenue, the company also generates additional income
through the sale of related products and brand extensions. This includes
variations such as sugar-free versions, flavoured editions, and
specialized formulations aimed at specific consumer preferences.
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5.2.6 Marketing Strategy
Red Bull’s unique marketing strategy focuses on building brand recognition
through extreme sports, cultural events, and innovative advertising. The
company has sponsored and organized numerous events, including the Red Bull
Air Race, Red Bull Cliff Diving, Red Bull Crashed Ice, and Red Bull Flugtag.
Red Bull also sponsors various athletes across different sports, including
Formula 1, soccer, and skateboarding.
Red Bull’s USP is built around the slogan “Red Bull gives you wings,” which
encapsulates the idea that the energy drink enhances performance and provides
an energy boost to help consumers achieve their goals. Red Bull is a premium,
functional beverage offering more than just hydration, differentiating itself from
traditional soft and other energy drinks.
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5.2.8 Key Activities
Media channels
Smart Transport (produces lesser than C02 emissions)
Marketing activities
Sponsorships activities
Wall-to-Wall production (saving resources through short distances)
Efficient cooling (with the use of eco-friendly coolers)
2. Red Bull gives more energy to young people: According to its slogan, Red
Bull gives wings to young people and their ideas through their energy drinks.
The company has about 150 related products in the energy drinks segment.
In fact, they created that segment in the market in 1987, and they have been
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leading the industry since. Also,80% of the energy used for production is from
renewable resources. This means Red Bull diversifies its energy supply and
produces no greenhouse gasses, which causes air pollution. The company
is not only passionate about providing consumers with the best energy drink,
but it also ensures its activities do not harm the environment its customers live
in.
4. For athletes, Red Bull’s energy drinks enhance their focus: Athletes need
energy and high mental focus for practice and performance on the field.
Red Bull’s energy drinks help athletes to maintain focus, endure exercise
workouts, improve performance, and stimulate alertness.
Matschitz explained the failure of Red Bull's first consumer test by claiming that
such products only succeed in their intended environment. In sterile laboratories,
no one needs extra energy, so Red Bull could not be treated at its true value. The
moment the drink was introduced into gyms, parties, and bars, or even
boardrooms, the rejection stopped, because the product found its right target
audience.
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5.2.12 Corporate Social Responsibility
Red Bull funds, sponsors, and invests in talented extreme sports athletes,
giving them exposure and helping them build a career around what they love.
The athletes’ names are always featured in Red Bull’s videos.
By featuring the athlete’s names, it not only provides Red Bull with the
material it needs to put its videos together – it also shows its wider community
(its consumers and fans who watch the videos) that Red Bull is actively
helping these athletes find their place in the world.
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GRAPHICAL
REPRESENTAION
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6.1 Coca-Cola
SWOT Analysis
S
• Repositioning Portfolio
• Brand Association
• Product Diversification
• Health Issues
• Infringement Lawsuits
• Overdependence On Third-party Technology Providers
W
• Extension Of The Ready-to-drink (RTD)
• Add New Goods To The Market And Lessen Added Sugar
• Profits From The Declining Value Of The U.S Currency
• Leveraging TikTok
O
• Pollution Lawsuit
• Fierce Competition
• Economic Uncertainity
• Increasing Health Awareness
T
• Possible Contamination
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6.2 Red Bull
SWOT Analysis
• Icon of Youth
• Extensive Global Reach
• Supremacy in Marketplace
• Effective Marketing Strategies
S
• Portfolio Diversity
• Supply Chain Efficiency
W
• Provide Healthier Alternatives
• Expansion of Product Range
• Emphasis on Emerging Markets
• Participate in Sports to the Fullest
O
• High Costs
• Replication of Products
• Competition
• Stricter Regulations
T
• Global Economic Crisis
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SUGGESTIONS &
RECOMMENDATIONS
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7.1 Coca-Cola
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7.2 Red Bull
4. Global Expansion: While Red Bull has a strong global presence, further
expansion into untapped markets, especially in Asia and Africa, can fuel
growth. Localizing marketing strategies and product offerings to resonate
with diverse cultural preferences will be crucial for success in these
regions.
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ANALYSIS &
INTERPRETATIO
N
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8.1 Coca-Cola
8.1.1 Strengths
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8.1.2 Weaknesses
8.1.3 Opportunities
1. Extension of The Ready-to-drink (RTD)- The Coca-Cola Corporation
subsidiary in Japan introduced the Georgia RTD coffee brand to the market
in 1975. Georgia was a hit in Japan, and in 2009, the business brought the
name to the United States. Currently, Asians living in the U.S. are the
primary consumers of these coffees. Although the market is relatively tiny,
Coca-Cola could continue advertising its Georgia brand to gain market
share for RTD coffee in the United States. Additionally, numerous smaller,
rapidly expanding RTD coffee companies could be quickly acquired to
grow the business’s RTD caffeine portfolio and its share of the market.
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2. Add New Goods to the Market and Lessen Added Sugar- Coca-ability
Cola’s to produce beverages that satisfy the needs of consumers who care
about their health is another asset. People are increasingly switching to
healthier choices like less sugary drinks and water due to consumers’
obsession with health. Coca-Cola will profit from such a trend if they
enter this market because it can raise its earnings and market share.
3. Profits from the Declining Value of the U.S. Currency- The Coca-Cola
Company generated $20.683 billion of its revenue outside the United States
in 2017. This indicates that most of The Coca-Cola Company’s profits come
from sources other than the U.S. dollar. Therefore, for the business to
compute its total income and send its revenues back to the U.S., other
currencies must be changed to the U.S. dollar. This is where a weak U.S.
dollar, or in other words, the currently declining U.S. dollar exchange rate,
is a financial opportunity for the company.
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8.1.4 Threats
1. Pollution Lawsuit- Coca-Cola is a significant polluter with its non-
biodegradable packaging. In June 2021, Earth Island Institute filed a lawsuit
against Coca-Cola, stating that they use deceptive marketing by proclaiming
that they are a sustainable and environmentally friendly company when in
the true sense, they are the major contributor to plastic pollution globally.
4. Increasing Health Awareness- Sugary soda drinks have held less appeal
to consumers due to increased health consciousness. Informed consumers
are also turning to healthier drinks. Some alternatives include low-or-no-
sugar carbonated beverages, iced tea, sports drink, energy drink, ready-to-
drink coffee, sparkling water, energy drinks, juices, and dairy.
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8.2 Red Bull
8.2.1 Strengths
1. Icon of Youth- Red Bull has established a youthful brand and efficiently
uses all platforms to attract youngsters worldwide.
2. Extensive Global Reach- Red Bull works in a variety of markets across the
world, including North America, Europe, Africa, Asia, and Australia.
Having a global presence improves stability and fosters long-term growth.
3. Supremacy in the Marketplace- Red Bull leads the energy drink business
in the United States and is the global top. Red Bull has the greatest global
market share, with 7.5 billion cans sold in 2019. Dominant firms have an
unfair edge over competitors.
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8.2.2 Weaknesses
1. Providing Unhealthy Drinks- Customers are becoming more health-
conscious and avoiding sugary and unhealthy foods. Regrettably, Red Bull
remains reluctant to change and continues to rely on unhealthy energy
drinks.
2. Trademark Enforcement Difficulties- Red Bull’s formula is tough to
defend because the firm did not create the ingredients. Any manufacturer
may produce a product that is nearly identical to Red Bull but has a small
change in flavour and get away with it.
3. Quite Pricey- Products branded and advertised as premium with excessively
high price tags struggle to attract the middle and lower classes. Furthermore,
it exposes the company to the threat of losing consumers and market share to
new competitors with lower-cost products.
4. Variety is limited- Consumers want alternatives, regardless of the things
available on the market. There are several goods that Red Bull could sell,
such as iced tea, fruit beverages, snacks, and sweets, but the firm insists
on selling only two such as – sugar-rich energy drinks and sugar-free
energy drinks.
8.2.3 Opportunities
1. Provide Healthier Alternatives- With a growing number of health-
conscious consumers, Red Bull could invest more in R&D to achieve and
provide healthier products. As a result, the firm will be able to capitalize on
the growing demand for healthier alternatives for food and drinks.
2. Expansion of Product Range- Red Bull could expand its product ranges
to provide greater diversity, and new tastes, and to target a broader market
group.
3. Emphasis on Markets Emerging- Red Bull’s key markets are the United
States and Europe, yet both are crowded with multiple brands fighting for
market share. Red Bull may target emerging markets in Asia, Africa, and
Latin America, where the middle class is growing, the economy is
getting better, and the market is overlooked.
4. Participate in Sports to the Fullest- Red Bull could grow into sports for
business goals because of its years of expertise as a sponsor. For example,
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it could concentrate on making Red Bull Racing the top team in Formula
One.
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8.2.4 Threats
1. Costs are increasing- The ever-increasing operating expenses
undermine profits, from rising raw material costs to excessive marketing
charges.
4. Stricter regulations- Countries are concerned with how to control the rise
of lifestyle illnesses. Governments may decide in the future to impose
stricter rules on items containing harmful substances.
5. Global Economic Crisis is on the Loom- Costly luxury items are the first to
be removed from a limited budget during times of economic crisis. With the
approaching recession, Red Bull’s revenues and profits are at risk because
its goods are high-priced luxury items.
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REFERENCES
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