Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages

Topics: Coca-Cola, Soft drink, Caffeine Pages: 2 (488 words) Published: November 15, 2013
The strength of these companies had been growing strong but had a slight decline in recent years. SWOT for the Industry
Strength:
Product Expansion – many new products have been developed
Distribution Channels – Can use convenience stores, grocery stores Able to deliver with carbonated soft drinks
Weakness:
Price is high compared to soft drinks
Unhealthy ingredients
Caffeine is not regulated – like in soft drink industry

Opportunity:
Consumer demand
Supplier Channels – ingredients, cans, labels
Product Innovation – provides differentiation
Brand Loyalty – taste, image, energy boosting
Brand building skills needed
2 oz. energy shots
Threat:
Economy
Scientific evidence that some products are not healthy
Effect people with heart arrhythmias and insomnia
Mix with alcohol
Relaxed Drink Niche – abuse with prescription cough syrup
As we look at this SWOT analysis of the alternative beverage industry we notice that there are some opportunities that they have created and are able to use in the future. Consumers’ choices are changing from the standard soft drink to alternative beverages. The key is to be sustainable by building up these products. The main opportunity to help with sustainability is to build brand loyalty. Try building up the knowledge and uses of your brands will help you gain the skills needed to continue building the brand.

Porter’s five-forces model reveals that the overall alternative beverage industry attractiveness is high. Some beverage companies, such as PepsiCo and Coca-Cola, have mastered the art of brand building in the alternative beverage market and have been rewarded with rapid growth rates. The rising population of health conscious consumers is increasingly leaning towards alternative beverages that are believed to offer greater health benefits. The strongest competitive force, or most important to strategy formulation, is the threat of entry of new competitors. Competitive pressure from rival sellers is high in...
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