Question

Propose diversification strategy of red bull company

Answer 1

One of the strengths of Red Bull is that it is an industry leader. In order to maintain its position in the global marketplace, the following diversification strategies are proposed for Red Bull.

• Red Bull needs to adapt new strategies to new market conditions and its competitors. For example, Red Bull can target new markets such as third world countries like India and Pakistan.
• Another diversification strategy for Red Bull is to target the children and elderly citizens. Currently, Red Bull is targeting at younger generation male. Red Bull can diversify by targeting different segments such as the children and the elderly citizens.
• Competitors in the Asia-Pacific region are leading in the industry because they offer drinks at a lower price. Hence, Red Bull should adjust its product prices to meet the competition or offer new products/drinks at a lower price to combat the competition.