Introduction
Dietrich Mateschitz, the founder of Red Bull Company, has experienced enormous success over the year, since his entry in the beverage industry. Dietrich knew the competitive nature of the industry, with giants like the Coca-Cola Company. However, with proper planning and management, he has made his products known globally.
Body
Relating to Porter’s new market entrants model, Dietrich has ventured into the media industry. His plan is to advertise his products globally and increase revenue through market expansion. However, his entry into media is not yet profitable, but he envisions success in the future. This may be viewed as a threat to other companies; therefore, he must be creative in order to beat competitors. His main objective is to venture in media.
The article indicates that Red Bull sold at least 4.2 billion cans last year, meaning the target buyers have a high-purchasing power. This has led to the company amassing great revenue. The superior quality of the product makes Red Bull the product of choice, since many buyers opt for it from other drinks.
Red Bull Company has a great supplying capacity, since it supplies its products globally. The company sold over of 4.2 billion cans with its various markets all over the globe. With careful planning of Dietrich, Red Bull’s markets are still expanding through proper advertising strategies.
Dietrich’s entry into media demonstrates Porter’s competitive model of product and technology development. With the development of media technology, Dietrich will increase revenue, when their venture in media begins to bear fruits. Consequently, markets will also expand through various advertising methods.
Dietrich’s company has a number of competitors that produce similar products such as the Coca-Cola Company. The competition is high between Red Bull and these established firms. Dietrich has overcome such competition by producing high-quality products, favored by an increasing trend of buyers.
Conclusion
Dietrich has used his skills in planning to expand his company globally. Moreover, through his careful planning, he managed to venture into media. His strategy was to advertise his products. Additionally, this venture will also increase the company’s annual revenue, when it becomes profitable.