Future Outlook and Raising Capital in the Sports Drink Market
Future Outlook and Raising Capital in the Sports Drink Market
Justin Hickey
Dr. Eddie Montgomery
Entrepreneurship & Innovation BUS 521
11/2/2010
Executive Summary
The approach and obstacles to raising capital and managing future change can make or break a new company that is trying to compete for market share in the sports beverage industry. According to a recent monthly labor report, most new businesses have the best chance of surviving during the first two years (Knaup, 2005). The young company must also determine how to best utilize legal services. It is one thing a new business venture should not only consider but plan for. Another area of concern and attention must go to the issue of raising money to fund the business. The competitive and lucrative sports drink market has in the past been dominated by two main players, Gatorade and Powerade. Together they have long held over two thirds of the market share. However, the future outlook shows that the market is starting to include a wider variety of sports drinks that are targeting a broader range of personal needs. LJ Enterprises will utilize more than one avenue in raising capital. This will help to ensure the new company is funded well from the start in order to give it the best chance to succeed.
1. Discuss the future outlook and industry trends related to the new venture.
Future Outlook and Industry Trends The future outlook for the sports drink industry involves many new companies entering the market and offering different types of non traditional sports drinks. Gatorade has been leading the market for years but has yet to really come out with a new product. They have pushed different marketing campaigns and tried to repackage their product a bit, but the formula and product remain fundamentally the same. This is where new companies are able to gain ground against the bigger and more established market leaders. One new trend in the industry is to target a specific segment of
Justin Hickey
Dr. Eddie Montgomery
Entrepreneurship & Innovation BUS 521
11/2/2010
Executive Summary
The approach and obstacles to raising capital and managing future change can make or break a new company that is trying to compete for market share in the sports beverage industry. According to a recent monthly labor report, most new businesses have the best chance of surviving during the first two years (Knaup, 2005). The young company must also determine how to best utilize legal services. It is one thing a new business venture should not only consider but plan for. Another area of concern and attention must go to the issue of raising money to fund the business. The competitive and lucrative sports drink market has in the past been dominated by two main players, Gatorade and Powerade. Together they have long held over two thirds of the market share. However, the future outlook shows that the market is starting to include a wider variety of sports drinks that are targeting a broader range of personal needs. LJ Enterprises will utilize more than one avenue in raising capital. This will help to ensure the new company is funded well from the start in order to give it the best chance to succeed.
1. Discuss the future outlook and industry trends related to the new venture.
Future Outlook and Industry Trends The future outlook for the sports drink industry involves many new companies entering the market and offering different types of non traditional sports drinks. Gatorade has been leading the market for years but has yet to really come out with a new product. They have pushed different marketing campaigns and tried to repackage their product a bit, but the formula and product remain fundamentally the same. This is where new companies are able to gain ground against the bigger and more established market leaders. One new trend in the industry is to target a specific segment of
References: Hisrich, R.D., Peters, M.P., & Shepard, D.A. (2010). Entrepreneurship. Boston, MA: Mcgraw-Hill. Knaup, A.E. (2005). Survival and longevity in the business employment dynamics data. Monthly Labor Review, Retrieved from http://www.bls.gov/opub/mlr/2005/05/ressum.pdf Spano, M. (2010, June 1). Trends in sports drink formulations. Prepared Foods, Retrieved from http://www.preparedfoods.com/Articles/Feature_Article/BNP_GUID_9-5-2006_A_10000000000000842893 Methods to find funding for your new business . (2010, October 1). Retrieved from http://www.go4funding.com/Articles/Methods-to-find-funding-for-your-new-business.aspx Sugars, B. (2007, September 20). The 6 biggest mistakes in raising startup capital. Entrepreneur, Retrieved from http://www.entrepreneur.com/startingabusiness/startupbasics/startupbasicscolumnistbradsugars/article184350.html