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Case 5: Competition in Energy Drinks, Sports Drinks and Vitamin-Enhanced Beverages

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Jonathan Rojas

on 25 February 2014

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Transcript of Case 5: Competition in Energy Drinks, Sports Drinks and Vitamin-Enhanced Beverages

1. What are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain.
Case 5:Competition in Energy Drinks, Sports Drinks and Vitamin-Enhanced Beverages
Group 3
Nicholas Torrente
Jonathan Rojas
Jesus Cruz
Carlos Garcia
2.What is competition like in the alternative beverage industry? Which of the five competitive forces is strongest? Which is weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants?
3.How is the market for energy drinks, sports drinks and vitamin-enhanced beverages changing? What are the underlying drivers of change and how might those forces individually or collectively make the industry more or less attractive?
4.What does your strategic group map of the energy drink, sports drink, and vitamin-enhanced beverage industry look like? Which strategic groups do you think are in the best positions? The worst positions?
5.What key factors determine the success of alternative beverage producers?
6. What recommendations would you make to Coca-Cola to improve its competitiveness in the global alternative beverage industry? to PepsiCo? to Red Bull GmbH?
• Growth in the alternative beverage industry has slowed

• Competitors have made various attempts to increase their market share.

• The industry may attract additional entrants during the next several years.
How Big is the market?
How fast is the Market Growing?
How are these drinks segmented?
Global Market Size
Market Segmentation
Strong Competitive force: Consumer Leverage

Strong Competitive force: Substitutes competition

Weak Competitive force: Supplier leverage

Rivalry among sellers


Coca- Cola Improvements:
Introduce their product to other countries in a better way.
Red Bull:
PepsiCo Improvement:
Market their products better
Full transcript