Red Bull Rule in the International Economics

Red Bull Rule in the International Economics

Red Bull operations have significant impacts on the global economy. Although some effects are positive, it is critical to note that the global corporation has also had adverse impacts on the economy. Red Bull brand is one of the highly consumed energy drinks in the globe. Whereas Red Bull is produced in Austria, it is consumed in more than 160 countries. This indicates that the company has substantial impacts on the global economy, social, and political structures. Red Bull market share is estimated to be between 70% and 90% in nations where it has active operations.

Although there have been attempts by Coca-Cola and other brands to counter the competitiveness of Red Bull, the brand still command the large portion of the global energy drink consumption market. Before embarking on the impacts of the corporation, it is vital to focus on its history as well as factors that have improved its global presence. Dietrich Mateschitz established the company in 1984. The Red Bull drink is based on the concept of the Krating Deang; a popular Thai tonic drink. The brand has shifted from a regional drink to one of the highly consumed energy drinks in the globe. Likewise, its operations continue to have some impacts on the regional and global communities as well as markets. Through the use of a formula, Dietrich developed the product to fit into the Asian and the Western market.

In 1992, the Red Bull brand recorded its first global sales after venturingin the Hungarian market. Currently, Red Bull is consumed in more than 160 countries and is regarded as one of the largest energy brands in the globe in term of revenue levels. The breakthrough of the Red Bull brand was recorded after venturing into the USA and other European markets. Currently, the USA and Germany accountfor the largest sales levels of the brand.

Compared to other beverage markets, the energy sector can be regarded as being new and has few players. Red Bull serves as one of the organizations that captured a large global market during the early stages.Rather than trying to compete with Pepsi and Coca Cola, Dietrich Mateschitz embarked on launching a new product that would attract a new segment of customers with a distinctive lifestyle. Additionally, the drink does not just depend on taste as it is the case with other drinks. On the contrary, it focuses on the ability to energize both the mind and the body.

Impacts on the Global Economy

  1. Creation of Employment

Currently, Red Bull has plants and distribution centers in different parts of the globe.  Focusing on the number of Red Bull employees indicates that they have been increasing in the past six years. While the number of employees stood at 10, 410 in 2014, it is worth noting that there are more than 12, 000 workers currently.

In many developing countries such as Hungary and Vietnam, the organiz

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