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

Stratigic management - Essay Example The following analytical tools namely: SWOT analysis, PESTEL analysis as well as Porter’s Five Forces model analysis will be used in this case. The essay starts by outlining a brief historical background of the organisation 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 marketing managers of an organisation to be in a better position to know the situation taking place on the ground for them to be able to gain a competitive advantage especially in view of the competition that may exist. Background Red Bull 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 sports like white water kayaking, hand gliding, wind sur fing 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 â€Å"A SWOT analysis is a useful instrument for helping managers to identify internal strengths and weaknesses of a business and external 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 very important to the managers as it allows them to focus on key strategic issues based on the notion that an effective strategy 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 branding strategy. Red Bull was positioned as an energy drink that 'invigorated mind and body' and 'improved endurance levels' of the individual. The company’s slogan 'Red Bull gives you wiiings' also played a great 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 available 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. The packaging strategy has greatly enhanc ed 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 actually liked the taste of Red Bull. The company however did not focus on the aspect of taste in its promotions of the