Monster Energy’s Pest Analysis:
Introduction:
Hansen’s Natural Corporation (Now Monster Beverage Corporation) is a US based company located in Corona, California. They have been in the market from the 1930s in the manufacturing of natural sodas and from the early 20th century into caffeinated beverages. They have taken on Red Bull recently to become the top leader in the market of energy drinks. This can be taken as an advantage and a threat to the company as they have been majorly depending on their Monster Energy drink product solely for revenue generation despite having a wide range of natural products in the juice and the soda segments.
Monster Energy’s PEST analysis:
Political: There are numerous ongoing attempts to ban caffeinated beverages in various developed countries. This is evident from widespread surveys that have been performed by various authors on the ban of caffeinated energy drinks due to rising health concerns and the potential side effects of these beverages (Malinauskas et al. 2007; Clauson et al. 2008; Kaminer 2010). The market of monster energy is flourishing in all parts of the world currently. However in future if there is a ban on energy drink consumption, Monster Energy Corporation will collapse as according to the latest product report, 90% of Monster Energy’s profit returns come from the energy drink segment.
Economic: The recent development in Monster Energy Corp is that they have undergone a $250m share repurchasing of the company’s remaining shared stock. The company has overtaken its biggest competitor red bull recently and achieved the number one spot in the energy drink market. There are ongoing plans of numerous new product launches in the Sub-Saharan and Asia-Pacific regions.
Social: The change of name of Hansen Natural to Monster Energy Corp reflects the penetration of the energy drink segment in the company. The name change is being estimated as a measure to aim target energy drink depended population. The inclusion of
Hansen’s Natural Corporation (Now Monster Beverage Corporation) is a US based company located in Corona, California. They have been in the market from the 1930s in the manufacturing of natural sodas and from the early 20th century into caffeinated beverages. They have taken on Red Bull recently to become the top leader in the market of energy drinks. This can be taken as an advantage and a threat to the company as they have been majorly depending on their Monster Energy drink product solely for revenue generation despite having a wide range of natural products in the juice and the soda segments.
Monster Energy’s PEST analysis:
Political: There are numerous ongoing attempts to ban caffeinated beverages in various developed countries. This is evident from widespread surveys that have been performed by various authors on the ban of caffeinated energy drinks due to rising health concerns and the potential side effects of these beverages (Malinauskas et al. 2007; Clauson et al. 2008; Kaminer 2010). The market of monster energy is flourishing in all parts of the world currently. However in future if there is a ban on energy drink consumption, Monster Energy Corporation will collapse as according to the latest product report, 90% of Monster Energy’s profit returns come from the energy drink segment.
Economic: The recent development in Monster Energy Corp is that they have undergone a $250m share repurchasing of the company’s remaining shared stock. The company has overtaken its biggest competitor red bull recently and achieved the number one spot in the energy drink market. There are ongoing plans of numerous new product launches in the Sub-Saharan and Asia-Pacific regions.
Social: The change of name of Hansen Natural to Monster Energy Corp reflects the penetration of the energy drink segment in the company. The name change is being estimated as a measure to aim target energy drink depended population. The inclusion of
References: 1. Alva, M. (2011). Hansen Natural Gets A Buzz With Monster Drinks. Available: http://news.investors.com/article/583075/201108291429/hansen-natural-gets-a-buzz-with-monster-drinks.htm. Last accessed 14th March, 2012. 2. Banks, J., Sal, H. (2008). The Labour of User Co-Creaters: Emergent Social Network Markets. Convergence: The International Journal of Research into New Media Technologies . 14 (4), 401-408. 3. Clauson, K.A., Shields, K.M., McQueen, C.E. (2008). Safety issues associated with commercially available energy drinks. J Am Pharm Assoc. 48, 55-67. 4. Kaminer, Y. (2010). Problematic Use of Energy Drinks by Adolescents. Child Adolesc Psychiatric Clin N Am. 19, 643-650. 5. Malinauskas, B.M., Aeby, V.G., Overton, R.F. (2007). A survey of energy drink consumption patterns among college students. Nutritional Journal . 6 (35) 6. Miller, K.E.. (2008). Energy Drinks, Race, and Problem Behaviors Among College Students. Journal of Adolescent Health . 43 (5), 490-497. 7. Schlosberg, H.H. (2012). Monster Beverage Corp. EDGARonline. 1-5.