Friday, June 14, 2019

Stratigic management Essay Example | Topics and Well Written Essays - 2500 words

Stratigic management - Essay ExampleThe following analytical tools namely SWOT analysis, PESTEL analysis as come up as Porters Five Forces model analysis will be used in this case. The essay starts by outlining a drawing historical background of the geological formation in question for the sake of easier understanding then followed by an analysis of the above mentioned tools for scanning the environment in which the organisation operates. Environmental scanning plays a pivotal role in helping the market managers of an organisation to be in a better position to have sex the situation taking place on the ground for them to be able to gain a competitive advantage especially in view of the contestation that may exist. Background Red copper color GmbH is widely acknowledged as the creator of the energy drink category and has managed to maintain a close association with sports from the time it was launched in 1987. It is known for its sponsorship especially of extreme, alternative s ports like white water kayaking, hand gliding, wind surfing and snowboarding. Through the use of unconventional marketing strategies, Red Bull GmbH has come to be a force to reckon with in the energy drink market. SWOT analysis A SWOT analysis is a usable instrument for helping managers to identify internal strengths and weaknesses of a business and foreign opportunities and threats facing it, (Strydom J. p 31). Basically, SWOT stands for strengths (S), weaknesses (W) while on the other hand the external environmental factors are regarded as either opportunities (O) or threats (T). This analysis is really important to the managers as it allows them to focus on key strategic issues based on the notion that an effective system fully utilises the strengths and opportunities of a business and strives to minimise the weaknesses and threats. Potential internal strengths The major potential strengths for Red Bull include stigmatization strategy. Red Bull was positioned as an energy d rink that invigorated mind and body and improved endurance levels of the individual. The companys slogan Red Bull gives you wiiings also played a neat role in reinforcing the positioning of the brand. This strategy played a very big strategic role in product development as well as strategic marketing. The branding strategy gave the company a major strength in that the product is completely different from the other energy drinks procurable in the market. This differentiation strategy has played a significant role in product development as well as marketing strategy as a result of the uniqueness of the product. The other major strength of the company in its product development and marketing strategy is that it uses unconventional marketing strategies. It targets the students and these are used to market the product. This is a major strength is the way the brand is positioned to the people whereby the aim is to attract consumers and appeal to their interests through its visibility. T he packaging strategy has greatly enhanced the development of the product which is unique. Potential internal weaknesses The major notable potential weakness is that Red Bull did not rate very high with consumers on the taste dimension. It has been reported that the drink had a medicinal flavour though it smelt sweet. The taste was bitter and few people rattling liked the taste of Red Bull. The company however did not focus on the aspect of taste in its promotions of the

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