SWOT Analysis for Wyred
Limited advertising methods Management costs caused by its many sub-brands Competition with other noted brands Unfavorable remarks on energy drinks Lawsuits against the company Added pressure from stock market Threats: Many factors contribute to the growth of Monster Beverage Corporation. Internally, its strengths include successful branding, which is well demonstrated by its catchy brand name and the distinctive logo—a stylized claw of a monster forming the letter SOOT Analysis for Wired By keelhauling values and personality, thus making it more attractive to customers, especially managers and those who have a taste for uniqueness.
Besides, the corporation’s publicity during sports and musical events gains it greater popularity. Also, compared to its biggest competitor—the Red Bull, Monster offers more choices of flavors for customers and is relatively cheaper . Undoubtedly, the corporation should maintain these advantages as it seeks future growth. Externally, it is paramount for the company to seize certain opportunities. Many people nowadays enjoy participating in physical activities, creating a big business potential for energy drink impasses like Monster Beverage.
In addition to a potentially expanding market, the company has the advantage of raising capitals through the stock market , which improves its financial condition as well as the ability of future development. On the other hand, despite its strengths and opportunities, there are also some negative factors that are important to note. First of all, although well-defined target market is an apparent advantage, it could be seen as a restricted market as well. While young people are susceptible to Monster’s uniqueness, people of other generations may be impervious to it.
It is good for a company to focus on one group of people, but it may suffer great loss if it loses these loyal customers. So, Monster should always please its customers by offering products of good quality and flavors or creating new products. Compared to the Red Bull, Monster Beverage has more sub-brands which will induce bigger management cost. It is important for Monster to maintain effective operation within its management system, thus avoiding unnecessary costs. Monster’s other weaknesses include limited market reach: although it has gained great popularity in any places around the world, it ignores a huge market in East Asia—China.
If Monster Beverage can successfully launch its products in the Chinese market, it is very possible that it will gain great profits in a country with such a big population. The company also faces external threats. The first one is the probability of losing customers due to criticisms on energy drinks. People are afraid of the unhealthy effects the drinks might cause. In the past years, several deaths reports of people drinking Monster Energy Drink led to many lawsuits against the company’s products . In view of these, the company should make efforts to prevent rumors as well as be honest about the ingredients and effects of its drinks.
Because many people are doubtful towards the highly caffeinated drinks, the company can produce drinks containing different amount of caffeine in order to fulfill different needs. And printing warnings on the cans for teenagers and children can certainly demonstrate the willingness to be a responsible company. Other threats include the extra pressure from the stock market . For instance, shareholders tend to Judge management in arms of profits, which can cause management to focus on short-term strategies rather than long-term ones.
