Red Bull SWOT Analysis | A Business You need to Know

by Shamsul
SWOT Analysis of Red Bull
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Red Bull SWOT Analysis

If you want to see the best example of passion then Red Bull is ideal. Within 35 years, Red Bull has switched from an idea to an international leader in the energy drink segment. Red Bull SWOT analysis will definitely inspire you how passionate businesses flourish and succeed. In this highly aggressive marketplace, Red Bull has maintained its place and stability. Today, we will talk about Red Bull’s strengths, weaknesses, opportunities, and threats.

Company:  Red Bull GmbH

Founder:  Dietrich Mateschitz & Chaleo Yoovidhya

Established:  1984

Head office:  Fuschl am SeeSalzburgAustria

Type: GmbH

Symbol:    Red Bull

Employees (2023):  17,848 

Annual Revenue (2023):  10.55 billion euros

Net income | Profit (2023):  10.55 billion euros

Products or Services:  Red Bull Racing || New York Red Bulls || Scuderia AlphaTauri || RB Leipzig || FC Red Bull Salzburg || Red Bull Bragantino || Red Bull Brazil || EC Red Bull Salzburg || EHC München || Red Bull Records

Surprising Fact: Red Bull is an energy drink that is appreciated by most groups that include topmost athletes, hardworking professionals, students, and most travelers. It has obtained the uppermost market share around the world of any energy drink. This Energy Drink has a sales record with 7.5 billion Energy Cans sold during a year.

Red Bull SWOT Analysis

Market Dominance:

1- Red Bull is the largest energy drink company and rules the US market and other regions of the world. Red Bull has contained the largest market share with 7.5 billion cans sold in 2019.

2- Rapid Growth in Sales:
Red Bull’s sale was increased by 37 % in India, 30 % in Brazil, 25 % in Africa, 12 % in Austria, 12 % in Eastern Europe, and 9 % in the US in 2019. This kind of boost in sales directs to an increase in profits and revenues.

3- Intensive Marketing:
Red Bull’s advertising strategy is extremely effective and develops social sites and sports. Currently, Red Bull’s racing is the 3rd best Formula One Team. Red Bull also sponsors hundreds of sportspersons and teams across several sports.

4- Worldwide Existence:
Red Bull operates in major parts of the world such as America, Europe, Africa, Asia, and Australia. With this wide demographic existence, Red Bull gets stability and empowers its long-term growth.

5- Strong Brand:

Since its launch, Red Bull has been reliable in its placing with the motto ‘’Gives You Wings’’ which is appealing and terrific. Red Bull is ranked 71st most valuable brand in 2019 with a brand value of $9.9 billion.

6- Valuable Supply Chain:
With reliable suppliers and trustworthy distributors, Red Bull has the most effective supply chain. This ensures that the product is always in stock in stores around the world.

7- Youthful Icon:
The biggest secret of Red Bull’s success is its youthful and enticing icon. It emerges as the product of youth and attracts youth from corner to corner of the globe.

8- Diversified Portfolio:
As a brand, Red Bull is also famous in car racing, auto manufacturing, arts, and air racing apart from energy drinks.

Red Bull SWOT Analysis


1- Lack of Diversity:
Red Bull only offers only two types of drinks, sugar-rich, and sugar-free energy drinks. The company should diversify its limitations by offering snacks, sweets, iced tea, fruit-based beverages, and so on. The customers always demand more varieties and options.

2- Offering Harmful Products:
In the modern age, people are more aware of health-related problems and issues. They don’t like sugary and unhealthy products. Sadly, Red Bull still insists to offer unhealthy energy drinks.

3- Highly Expensive:
The unreasonable or high price of a product didn’t attract the middle or lower class of people. Red Bull’s energy products are highly expensive, so there’s a risk of losing potential customers. There’s also a probability that cheaper products attract those customers.

4- Obscurity in Enforcing Copyright:
It is really difficult for Red Bull to protect its formula. There’s a risk that any company can manufacture the same formula. But Red Bull has a little edge in taste and tang.

Red Bull SWOT Analysis


1- Pay Attention to Emerging Economies:

Europe and the United States are two bigger markets for Red Bull, but it should think about emerging markets like Asia and Africa. They should get the advantage of these markets by selling their products and services. These rising markets can be proven hot dogs for Red Bull.

2- Launch Healthy Products:
Red Bull should invest in R&D to achieve and present quality and healthy products. due to the increasing demand for healthy drinks and food, this strategy helps Red Bull to expand its reach and revenue game.

3- Engage in Sports Completely:
As Red Bull already engaged in a lot of sports and sponsors hundreds of athletes, Red Bull should expand into sports for business intentions. They should focus on creating Red Bull Racing into the top in F1.

4- Widen Product Lines:
Red Bull can increase its sales and revenues by offering more variety and new flavors to capture new customers. This strategy will help a lot in generating more revenue.

Red Bull SWOT Analysis


1- Tougher Rules:
Due to many health problems, the government can impose a ban on unhealthy drinks. With this threat, Red Bull should revise its recipe technique as soon as possible.

2- Raise in Artificial:
In emerging markets, people consume fake energy drinks by thinking it is the original Red Bull product. It is really important to counter these brands and products. This thing is really alarming and can damage the sales and impact of Red Bull.

3- Mounting Health-Consciousness:
Red Bull uses unhealthy ingredients in its drinks such as caffeine, concentrates, flavors, and so on. This can break the trust of health-conscious customers. Most of the consumers are using healthy products such as water, juice, and milk. These kinds of things can decline the Red Bull’s revenues.

4- Hard Competition:
Red Bull is facing hard competition from small companies apart from Monster. This kind of competition can be dangerous for Red Bull because it can lead to the loss of Red Bull’s impact and profits.

5- Looming Recession:
Due to the pandemic and luxury prices of Red Bull’s products, Red Bull suffers a lot in 2019 and the current year 2020. They experienced a huge decline in profits during these fiscal years. The company should modify its pricing policy as soon as possible.

6- Global Pandemic:
Energy drinks are widely used in special gatherings such as sports and parties. As all the activities are postponed due to the ongoing pandemic, the Red Bull’s operations are shut down in every region of the world.

7- Growing Costs:
As the prices of raw materials are increasing day by day, it is really tough to manufacture the same product in the same budget. This thing also ruins the impact and profits of Red Bull.

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