Competition of Drinks and Beverages - Case Study Example

COMPETITION OF DRINKS AND BEVERAGES Student’s Name Instructor’s Name Course Date Competition of Drinks and Beverages Beverage industries are now a point of focus for most of the business companies. Each and everyday companies are emerging with different brand of drinks to proof their existence. The emerging of both local and international beverage companies has enhanced stiff competition in the market. Beverage manufacturers have increasingly made an effort to increase their supplies leading to rapid growth of the economy. They have continuously expanded the market by introducing some substitution drinks such as sports drinks, energy drinks and vitamins-enhancement drinks (Paddock, 2008). This is now working due to the increase in demand of the beverages by the consumers across the globe. This is the main reason why beverage industry has been able to meet its objectives within a short duration. According to the research done, beverage production has rapidly increased in the current market compared to the previous years. This is because of the new brands of drinks which have been introduced in the market over the years. Consumers have now turned their attention and desires to the alternative drinks which have been recently introduced in the market. This is because the industry has discovered the different ways of reaching the consumers interest. Consumers are now purchasing the alternative drinks at an increased rate because of the shift in their choice of beverages in the market. All the companies were producing soft drinks have now shifted to the manufacture of alternative drinks bringing competition in the beverage industry (Paddock, 2008). Product innovation is the key component to put into consideration in the competitive market of alternative brands of beverages. It is because consumers are attracted by the content and effectiveness of the drink. Beverage sellers are looking for the products which are highly demanded by the consumers so as to earn profit in their sales. Competitive Forces Industry Members are Facing and the Strength of the Forces. Competitive forces are the factors that have a significant impact on the industry and its members. They play a key role of determining the profit, expansion and the rate of growth of the industry. For an industry to be considered successful, the competitive forces must be put into consideration. Growth rate and the size of the market are the first force with a great impact on the industry members. Over the years, beverage industry has experienced a rapid growth and expansion. It has continuously shown improvement in its supplies since the introduction of the alternative drinks (Egner, 2009). Since the year 2005, consumer’s interest has shifted from soft drinks to the alternative drinks. The proper system of supplying the products in supermarkets and shops has created their awareness increasing their demand (Egner, 2009). Expansion of the market has been enhanced by the rise in emerging companies with different brands of beverages. They all claim to produce the best alternative drinks bringing a stiff competition amongst them (Egner, 2009). According to research, energy drinks, sport drink and vitamin-enhance beverages have increased income in the soft drinks industry. Marketing is another force that affects industry members. Advertising of alternative drink to create its awareness profoundly affects the rate of demand by the consumers. For a product to be demanded, consumers must be familiarized with it (Paddock, 2008). Energy drinks should be advertised and marketed with both written and drawn descriptive. They should be colorful and attractive to ensure the consumers are captures (Paddock, 2008). The products should be branded with exciting names that give the beverage seemly appearance in the market. Marketing is a determinant factor that distinguishes an energy drink of your company from that of the competitor. It is the best way to be on top of your competitors in the market (Paddock, 2008). An example is Red Bull, which is holding, a market share of 40% making it remain the leading energy drink (Paddock, 2008). Marketing should create an authentic connection between the consumer and the product. A sports man should be given an image that implies greater performance is achieved by drinking the energy drink. Increase in globalization is the third force that affects beverage industry members (Schwiebelmann, 2013). Globalization is the stimulant for an increase in competition. It increases the amount of profit in the industry. It leads to an increase in the level of production, therefore, leading the market leading to profitability and competition. Globalization favors companies with large scale production of beverages because they have the ability to handle the effects better compared to the small companies (Schwiebelmann, 2013). Key Factor for Competitive Success in Industries Main success factors are always monitored in the business sector because it is essential to be informed about the factors. Success factor is the positive characteristics in the market which gives the company a chance to prosper. The choice on a factor must reflect a transparently understanding of the change of competition in the beverage industry. They are the key opportunity for a competitive advantage. They give accompany its points of weaknesses and the best solution to them. This has given both the new and old companies a standard platform in the industry. The choice of the factors is what will help your company compete effectively and efficiently with its rivals (Oswald, 2012). To achieve the objectives of an industry, the first step is to ensure the superiority in the market has been achieved. A company must provide excellent services to its clients so that they may capture many consumers. They must be able to make their services unique and distinct from that of its competitor. It will help them get the targeted market (Sivaramakrishna, 2009). If superiority is achieved in the market, it is much easier to get an increase in demand of the product because consumers will have trust in your products. The best way to gain superiority is by giving the beverage a good and exciting brand. The beverage should be catchy in both its image and words that describe it. It should show some unique features that the rival companies do not have (Sivaramakrishna, 2009). Services offered to the customers by the industries should be of a high quality and matches the amount of the price paid. Industries should aim at long term services that will assure them of a good outcome at the end of a financial year (Tovstiga, 2005). The services should be better compared to that of the rival company. Pricing should be competitive and standard in such a way that it reflects the image and effectiveness of the company’s product. The structure of the company is another factor that should be put into consideration (Marthandan, 2012). Structure approach emphasizes on the function of mobility to safeguard a company’s competitive force. The structure should make sure there is an adequate supply of the products in the market to ensure maximum return. The best way to get maximum profit in the sale of beverage products is by observing the factors above. The factors are the key guide of attaining the goals of the company (Alleda, 2010). They help in making and planning for the strategy of the companies. Competition is the only tool that can trigger industries to produce effective and efficient goods for the consumer. This is because all the companies are always in the fear of losing clients making them try and produce goods which are better than their competitor’s goods. It is evident that, over the years, the alternative drinks such as sports drinks, energy drinks and vitamin-enhancement beverages have taken over the soft drink industry. They have taken over the market using different names and brands. Consumers have also shifted their interest making the cycle complete. The effectiveness of the brand is all that matters. Many companies are coming up with various products claiming to be the best. The effectiveness of the products is what will make them superior. If the forces impacting the industries are well controlled, the rate of growth of the industries will increase causing expansion of the markets. It is through observing the key success factors that the economic growth of the beverage producing industries will grow. The characteristics are the only secrets that lie behind the success in the beverage industry. The alternative drinks are now in control of the market. Beverage industries must be able to look for the best ways of combating the growing competitive industry. They must be able to come up with the best beverage brands that may propel them towards the superior end. The key function of the case study is to help the industry evaluate if it has been able to meet its objectives and goals. It is a guide that can help both new and old companies in strategizing of their priorities using the factors listed above. If the factors above are prioritized, the company is assured of excellent performance ever. It is the only way to meet the target of the company. With the changing market, the factors will help in coping up with the problem because they are flexible. For smooth management of beverage industries, the factors above should be put into consideration when strategizing. References Alleda, R. (2010). Key Success Factors of New Products / Product Innovations: Case Study: "Kess & Fit". Santa Cruz: GRIN Verlag Birchall, D & Tovstiga, G. (2005). Capabilities for Strategic Advantage: Leading Through Technical Innovation. Basingstok: Palgrave Macmillan Egner, T. (2009). Strategy Analysis - Coach Inc. Santa Cruz: GRIN Verlag Flouris, L & Oswald, S. (2012). Designing and Executing Strategy in Aviation Management. Farnham: Ashgate Publishing, Ltd. Marthandan, G. Jayashree, S & Vinayan, G. (2012). Critical Success Factors of Sustainable Competitive Advantage: A Study in Malaysian Manufacturing Industries. An International journal of business and management, 7(22), 30-43. Paddock, R. (2008). Energy Drinks’ Effects on Student-Athletes and Implications for Athletic Department.. The Sport Journal, 11(4). Sivaramakrishn, K. Appa, C & Parvathiswara R. (2009). Strategic Management and Business Policy. Delhi : Excel Books India. Schwiebelmann, J. (2013). Macro environmental Analysis of the German Solar Panel Industry. Santa Cruz: GRIN Verlag Read More