Category: Business Essay


Red Bull is a drink created in Austria by Dietrich Mateschitz, who modified a functional tonic that he discovered on his Asia tours to fulfill Western tastes. Dietrich undertook the initiative because he was inclined to make a drink, which quenched thirst and also possessed an operational advantage. Consequently, Dietrich managed not only to establish the corporation but also to create an entire new industry with significant worth in billions. In understanding the UAE Red Bull Company and the scale and scope of the energy drinks industry, it is essential to comprehend the essence of an energy drink. An energy drink represents a carbonated beverage that mainly comprises of caffeine and other ingredients to enhance the drinkers’ energy levels. Energy drinks trade has developed throughout years, and the producers are the vital players in the business today. The energy beverages industry has flourished in the recent times. King states that energy beverage intake has risen on average 10% since early 2007 bringing the consumption to over 4.5 billion liters in a span of four years. The energy drinks industry is a trade, which is in a state of augmented growth.

Red Bull represents a titan of the energy drink trade, one that has successfully established, dominated, and developed into a prosperous mineral beverages name. It is under the watch of FMCG business giants like Coca Cola and Pepsi Co. The corporations have significantly targeted the energy drinks company as their industries have started to fall . The drink’s ingredients are created in pharmaceutical corporations to guarantee great value and safety. Due to the chemical elements the drink is believed to enhance performance, focus, response time, mental status, and stimulate metabolism. In the UAE, Redbull drink is widely marketed and sold by the Abela Supermarkets, Abu Dhabi Co-operative Society, and Al Maya Supermarkets among others.

Calculate the price

Calculate the price

In the UAE, Red Bull faces competitions from Monster Energy, which alongside Red Bull represents the greatest share of the energy drinks trade. Monster Energy possesses a much broader product line than Red Bull with different choices of flavors. Also, the corporation provides a significantly larger can for the same price as Red Bull to create a better consumer value. Another competitor is Rockstar Company. The majority of consumers use Red Bull as an energy stimulant in place of energy bars or other foods. Redbull with its liquid vitamin B supplement competes in the niche market for vitamins and faces rivalry with larger pharmaceutical corporations.


A business can assume various strategies for efficient development. There exist three main strategies that a company can pursue namely the low-cost strategy, the differentiation strategy, and the response strategy.

In the low-cost approach, the company efforts are concentrated on being the supreme low-cost provider of a service or product that appeals to an extensive range of consumers. In the method, a corporation provides reduced price for a commodity, attempting to stimulate and enhance demand and acquire market share. The actual winner is the firm with the lowest price in the industry. Additionally, the approach is associated with increased profits, through which the company can undertake numerous initiatives to enhance its market share.

In the differentiation strategy, the corporation is perceived in the market as having a significantly higher worth to the client or consumer than the offerings of its rivals. Customer value is offered through distinct characteristics and features of products. In the approach, the business must completely understand its clients’ needs and preferences. A company must be driven to innovate to constantly address the requirements while creating a brand to uphold its position and visibility.

The response approach entails reducing order response time and achieving increased accuracy in marketing the right products. A firm strives to offer a highly diverse assortment of goods and services to a client in exact quantity, quality, and variety as dictated by consumer demand.

Red Bull Company uses the differentiation strategy. The approach is due to the company’s limited scope in the energy drink trade. The cost of the drink is about 5Dhs in the UAE, which reveals the distinct differentiation of the product, particularly in a market where everyone is competing for the equivalent client segment. Red Bull possesses an excellent brand image in the soft drinks industry. The beverage upholds the image through focus-differentiating the product by targeting their clients based on the demography (age, lifestyle, culture) and the layout. The trade has many antagonistic rivals with a strong brand image like Coca-Cola and Pepsi.

A core competency represents a harmonized combination of diverse skills and wealth that differentiate a business in the marketplace. Among Red Bull’s core competencies is creating an image of power, promptness, and recklessness, and dominating the energy drink market globally. The firm is using the core competencies in their operations management activi