3 pages

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

Case Questions & Issues V.13 KEAW 8.13.13 1. The Key Characteristics of the Global and US beverage industry

• What are the strategically relevant components of the global and US industry macro-environment (size, growth rate, segmentation, etc)?

• How do the economic characteristics of the alternative beverage segment of the industry differ from those of other beverage categories?

• What are the underlying drivers that could affect the potential economic and Industry changes?

Hint: Relevant key economic, industry and market segment #’s and trends

2. Competition in the Alternative Beverage Industry

• What is competition like in the Industry? How has it evolved? • Which of the Five-Forces are the strongest ? .... the weakest? • What competitive forces seem to have the greatest effect on

industry attractiveness and potential profitability of the existing as well as potential new entrants?

• Based on Industry trends and the Five-Forces characteristics, does this appear to be an ‘attractive industry’ for existing companies? .... for new entrants?

Hint: Porter’s Five-Forces Model 3. Key Factors for Success and Competitor Positioning

• Who are the key competitors, their brands, size, and methods for reaching their key customer segments?

• What Key Factors seem to determine the Success (growth, profitability, share) of the enhanced beverage producers, distributors & marketers?

• Construct a Strategic Group Map showing the relative position and sizes of key distinctive industry strategic groups.

• Which strategic groups of competitors are in the best positions?.... the worst positions? Why?

Hint: Strategic Group Map - consider Brand Portfolio Breadth (single, dominant, multi-brand) vs Scope of Geographic Distribution (regional, national, international)

4. Industry and Company Trends, Options and Recommendations

What are the key issues affecting the industry growth trends – and the specific options available and recommendations you would make to Coca-Cola to sustain/improve its global competitiveness and position in the Industry? .… to PepsiCo? .… to Red Bull GmbH?