• The market is attractive as the sector is growing and more people are taking part in sports
• Global marketing opportunities with a wide range of distribution channels exist. These include supermarkets, vending machines and convenience stores.
Gatorade is a strong brand and therefore even though the threat of new entrants is high it will still hold a significant market share due to its current loyal customer base.
• Threat of Substitutes is high. There are various substitution products of sports drinks such as energy drinks and juices.
All these drinks can provide the similar benefits as those of Gatorade.
• The threat of buyer power is high as consumers can switch from one product to another easily. …show more content…
• The threat of supplier power is low since there is a large number of suppliers that provide the raw materials and packaging.
• The threat of competitive rivalry is medium. The market is a competitive one but it is concentrated with two main brands sharing the global marketing: Gatorade and Powerade. If the economic conditions go down, competitors have to downsize their supply and then competition increases for the remaining