The Red Bull Company’s Strategic Analysis

The situation analysis models are crucial tools that help businesses to comprehend the world around a company better and generate ideas about it. These methods define the tactics and steps an organization must follow in order to achieve the goals that it has set out to accomplish. As a result, the business consultant can readily examine and map information. In this case, the focus is on the SWOT model application to the Red Bull organization (Katargina, 2019). This method centers on a company’s fortes and faintness and the possibilities and challenges that it may face. The management makes strategic decisions about their businesses with the help of SWOT.

Red Bull is a prime example of how far a person’s love for his/her work can drive them. It has developed from a concept to a world pioneer in the beverage market in less than 35 years. The SWOT Analysis provides valuable insight into how passionate entrepreneurs survive and prosper in a highly competitive environment (Lee et al., 2020). This process gives information on how an organization will use the assets and its abilities in business. It also helps a firm determine which techniques deliver the best opportunities, overcome weaknesses, and avoid threats (Abdi et al., 2011). The SWOT findings are compared with the company’s objectives to determine actions that would be taken to improve the company.

The marketing world is constantly evolving due to a multitude of external impulsive factors. Companies must not only do a rigorous review of the authentic marketing environment but also examine the circumstances under which they operate. The marketing environment of an organization is divided into two categories – the micro and macro environment. The interactions of these categories that are correct result in a good performance of a company. SWOT analysis, in this case, helps in recognizing intrinsic capabilities and threats of the firm and external possibilities and dangers among the micro factors considered by this model. It also investigates customers to make good marketing propositions and shape further digital marketing (Kotler et al., 2019).

What is more, the model examines the market by including arbitrators, influencers, and future partners and their effects on the buying course. This entails discovering and analyzing the most critical online factors affecting buying behavior, illustrated in a consumer journey diagram.

Microclimate relates to the way how an organization is structured and how its day-to-day operations are organized and carried. This shows how internal elements influence vital business operations and decisions and can affect the company’s achievement and common maneuvers (Pickton & Wright, 1998). Micro-world also affects the firm’s internal situation and culture, affecting marketing and all other divisions such as accounting, R&D, investment, Human Resources, sales, logistics, and secretarial.

On the contrary, businesses cannot control the macro environment, though as a consequence, they should develop their policies around the restrictions set by these variables. It incorporates the arcade’s demography, fiscal, technological, environmental, socio-cultural, and politico-legal settings in all of its aspects. Companies that are more reliant on the economy’s general health are affected by macroeconomic issues (Petrunia et al., 2019). Industries that deal with the manufacturing and delivery of everyday goods and services tend to be more self-contained. Macroeconomic considerations have a more significant impact on cyclical businesses representing the leisure industry.

Marketing companies must aim to respond to their target consumers’ desires and demands. They also have to achieve a competitive edge over their rivals by knowing how other brands are valued and perceived by customers. Understanding how companies perform in a given environment is critical. Benchmarking consumers offering and data reports against direct and indirect competitors, as well as other businesses, can aid in the detection of new online presence methods that need to be improved.

In this scenario, a SWOT analysis helps identify the dangers associated with this firm (Kocakulah et al., 2017). Red Bull company’s biggest rivals are the monster brands that produce similar beverages with ingredients that are highly desired by the customers. The ingredient used is not approved and therefore keeps the health of the customers at risk.

Environmental scanning is a strategic orientation that aids businesses in risk management. It also takes into account all aspects of the economic world that affect a company’s activities. It embraces scans on internal and external factors in a business operation (Hwang & Park, 2020). The management uses the collected information to establish strategic plans for a business. Companies may determine the environmental jeopardies associated with their marketing promotions implementation by running a scan (Fill & Turnbull, 2019).

The results of these examinations enable enterprises to make informed pronouncements about their upcoming activities. The findings are described utilizing a SWOT (capabilities, limits, opportunities, and risks) analysis. This method brings insights regarding issues organizations may face in future; thus, businesses apply this information to make further decisions. The company usually searches for methods to turn perils into opportunities and liabilities into strengths. For instance, Red Bull Corporation creates new products to take the opportunity of the changing marketing environment. Since it has the status of a famous sports sponsor, it takes advantage and promotes its brands widely.

Businesses may use a SWOT analysis to identify dangers and prospects that they should be aware of. Companies may win a competition in their market segment by conducting SWOT analyses and delivering advantages to their consumers, such as lower prices and greater service. This tool helps review the current market point of the business and encourages owners and management to move forward to determine the best tactics for achieving objectives.

This analysis has minimal disadvantages when used correctly, but the time commitment and inherent bias in preparedness are hurdles. Hill and Westbrook (1998) identified that SWOT analysis might be too general and long, failing to prioritize further actions. They also found that it was rarely used in later stages of business planning. If conducting a SWOT analysis in the Red Bull company, the findings would summarize the challenges it might face due to growing competition. For this company to minimize the threats, it has to adopt the 4 Ps of revolution in the marketing plans. Enhancing the current progression will lead to a positive output, and an improved mindset will follow.

To conclude, the SWOT analysis is the fundamental and universal management tool applicable to situation assessment. Every marketing manager needs to identify the company’s strengths in order to capitalize on them by devising the appropriate marketing strategy. The SWOT analysis helps managers to find the competitive advantages of the brand and its offerings on the market. It is also indispensable in identifying brand weaknesses that can be addressed to improve a firm’s reputation.

The knowledge about strengths and opportunities also assist marketers in designing and launching new products that will meet client needs and generate additional revenue streams. Simplicity and accessibility are among other advantages of the SWOT analysis. Nevertheless, this model lacks hierarchy, overlapping elements, requires preliminary research, and can be excessively subjective without the correct information. The main problem is that many minor issues remain ignored, while others are strictly categorized using a black and white approach. In other words, it may be too insufficient and superficial for fully-fledged and successful marketing planning.


Abdi, M., Azadegan-Mehr, M., & Ghazinoory, S. (2011). SWOT methodology: A state-of-the-art review for the past, a framework for the future. Journal of Business Economics and Management, 12(1), 24-48. Web.

Fill, C., & Turnbull, S. (2019). Marketing Communications: Touchpoints, sharing and disruption. (8th ed.). Pearson Education Limited.

Hill, T., & Westbrook, R. (1997). SWOT analysis: It’s time for a product recall. Long Range Planning, 30(1), 46-52. Web.

Hwang, J., & Park, K. (2020). Performance Improvement under Uncertain Environment: Moderating Effects of Competitive Strategy and Scanning Activity. The Korean Academic Association of Business Administration, 33(1), 167-188. Web.

Katargina, N. (2019). Development of a competence model of organization personnel in the context of forming knowledge economy. Economics Profession Business, (4), 31-36. Web.

Kocakulah, M., Foroughi, A., Stott, A., & Manyoky, L. (2017). Activity-Based Costing: Helping Small and Medium-Sized Firms Achieve a Competitive Edge in the Global Marketplace. Journal of Accounting & Marketing, 06(03). Web.

Kotler, P., Keller, K. L., Goodman, M., Brady, M., & Hansen, T. (2019). Marketing management (4th ed.). Pearson Education Limited.

Lee, J., Lee, S., & Jung, K. (2020). Balanced SWOT: Revisiting SWOT Analysis through Failure Management and Success Management. SSRN Electronic Journal. Web.

Petrunia, Y., Chentsov, V., Życzyński, N., & Petrunia, V. (2019). Marketing environment and marketing management of universities in Ukraine: national and regional dominants. Innovative Marketing, 15(1), 1-12. Web.

Pickton, D. W., & Wright, S. (1998). What’s SWOT in strategic analysis? Strategic change, 7(2), 101-109.

Cite this paper

Select style


BusinessEssay. (2023, January 4). The Red Bull Company's Strategic Analysis. Retrieved from


BusinessEssay. (2023, January 4). The Red Bull Company's Strategic Analysis.

Work Cited

"The Red Bull Company's Strategic Analysis." BusinessEssay, 4 Jan. 2023,


BusinessEssay. (2023) 'The Red Bull Company's Strategic Analysis'. 4 January.


BusinessEssay. 2023. "The Red Bull Company's Strategic Analysis." January 4, 2023.

1. BusinessEssay. "The Red Bull Company's Strategic Analysis." January 4, 2023.


BusinessEssay. "The Red Bull Company's Strategic Analysis." January 4, 2023.