Case #5: competition in energy drinks, sports drinks and vitamin-enhanced beverages.Here are the instructions:I have attached all the pages of the case study that you need to read before write the...

Competition in Energy Drinks, Sports Drinks, and Vitamin – Enhanced Beverages
1. What are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain.
Answer It is very difficult to trace out the strategically relevant components of the global and U.S beverage industry macro environment. But however we may say that some of the components in terms of size of the market, growth of the industry, product segmentation, and pressure from the rivalry, competitive advantages, and economic conditions do help the beverage industry in order to improve its market size. Looking at the trend of the industry in the past, we were expecting that the dollar value for the entire beverage industry for the year 2014 would have been $1.74 Million in the year 2014 as the producers of the beverages were entering to different markets with expectations of increasing the revenue. Now because of the economy downturn across the globe and as the disposable income for people had come down, the consumptions of carbonated soft drinks. While discussing in context with the beverage industry, it had negative impacts in handling the products during the economic downturn in the year 2008-09. It was also observed that consumers had reduced their consumption of carbonated soft drinks and are getting into all those alternative beverage that may a energy drink, Sports Drink and Vitamin – Enhanced Beverages. Looking at the market size of the beverage industry, it is $1581.70 Billion Worldwide. Out of this, carbonated soft drinks constitutes 48.20%, bottle water segment owns 29.20% of market share.
Following are the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories:
(i) Extended Economic down Turn had really hit the premium alternative beverage market both in the USA and in non- USA countries.
(ii) The producers of the beverages were scared of the health risk of the consumer while manufacturing the alternate beverages. As are a result Demand for alternative beverages have gone so drastically and the prices of the units also gone along with the demand.
(iii) People have changed their carbonated soft drink habits and they are getting adjusted to the alternative beverages because of the fact that preferences for the alternative beverages have gone up for many reasons.
(iv) As the alternative beverages has become the revenue generator engine, many producers focus on sports drinks, energy drinks and vitamin enabled drinks.
(v) The demand and supply mismatch with a huge difference has made the improvement in per unit price in case of alternate beverages and the producers were able to get good margins while dealing in alternative beverages.
2. What is the competition like in the alternative beverage industry? Which of the five competitive forces is strongest? Which is the weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants?
Answer There is a change in the trend from selling traditional soft drinks and juices by the beverage producers to the alternate beverage drinks like Sports drinks, energy drinks and vitamin enabled drinks – this led to stiffer competition among the existing brands. Because all the companies observed that the alternate beverage industry is money machine for them in order to generate more revenue. Competition in the alternate beverage industry has become that stiffer, which...