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SWOT Analysis for Wyred sample essay

?Successful branding and design: catchy brand name, stylish logo, etc. ?Well-defined target market ?Effective advertising through sponsorship of sports activities ? Relatively cheap among competitors ?Diversity of products: drink flavorsOpportunities: ?Large demand due to sports activities ?Its major competitor has less diversified products ?Benefits brought by going public ?No regulations or laws banning energy drinks NEGATIVEWeaknesses: ?Limited market reach (e. g. China) ?Restricted target market ?Limited advertising methods ?Management costs caused by its many sub-brandsThreats:

?Competition with other noted brands ?Unfavorable remarks on energy drinks ?Lawsuits against the company ?Added pressure from stock market 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 “M” standing for the company’s initial . This logo helps convey the company’s special values and personality, thus making it more attractive to customers, especially teenagers 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 companies 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 many 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 terms of profits, which can cause management to focus on short-term strategies rather than long-term ones.

In order to prevent the company from becoming short-sighted, it should find ways to balance between making profits and creating opportunities for steady future growth. In conclusion, while keeping its strengths and taking advantage of the opportunities, it should be good for Monster Beverage Corporation to reduce unnecessary cost, expand its market, make use of different advertising methods, preserve its good reputation and brand image, focus on both short-term and long-term strategies, and be a responsible and ethical company.


“Monster Energy Logo. ” Famous Logos RSS. N. p. , n. d. Web. 14 Sept. 2013. “Difference Between Red Bull and Monster. ” Difference Between RSS. N. p. , 18 Dec. 2010. Web. 15 Sept. 2013. “The Globe and Mail. ” The Globe and Mail. N. p. , n. d. Web. 15 Sept. 2013. “Monster Energy Drink® | Home. ” Monster Energy Drink® | Home. N. p. , n. d. Web. 15 Sept. 2013. “Monster Energy Drink Maker Sued for 14-year-old’s Death. ” CBSNews. CBS Interactive, 22 Oct. 2012. Web. 14 Sept. 2013. “Pros and Cons: Going Public. ” Findlaw. N. p. , n. d. Web. 15 Sept. 2013.

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