Swot : Energy Drink Industry Essay

817 Words Sep 22nd, 2015 4 Pages
SWOT: Energy Drink Industry

Strengths
• Very different type of product then what is mainly on the market
• Low supplier power: You can get the vitamins and other ingredients from many different suppliers if they increase price
• The barriers for entry are low, so when you have a hold on the market you aren’t overly concerned about people coming in
• Large market for people on the go needing fast energy

Weaknesses
• A lot of criticism on health problems related to daily use of energy drinks
• Though low entry barriers more because of product recognition by consumers many new companies are trying to enter market (Network Marketing companies)
• Very volatile product when the Economy is in a bad state

Opportunities
• A lot more economies are up and coming which means a lot more consumers will be looking for a quick boost for energy
• Younger generation appeal means that marketing can be lower cost by using social media platforms
• Holds a strong on product differentiation in the market place.
• Partnership and endorsements with Sports stars, Sporting events.
• Putting on Scholarships which would help product acceptance in college student target market
Threats
• If a company doesn’t stay on top of their game existing competitors can take over their market share
• Growing health concerns with consumers
• As health concerns increase it will cause Government agencies to look deeper into practices of the industry
• There is a large amount of substitutes like juice,…

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