Zip-6 in France: A Future Venture
Zip-6 in France: A Future Venture
Due to the recent ban of the rival drink Red Bull in France, Zip-6 has decided to look into its potential prospects in France. Entering into the French energy drink market could be beneficial not only for Zip-6 but also for a country that is becoming increasingly concerned with the ingredients in energy drinks. In order to make an informed decision concerning the possible entrance into the French energy drink market Zip-6 needs to know what kind of competition currently exists, what the trade limitations might pose a problem, and what entry strategy would be best suited for the situation. One of the biggest influences for the company to enter into a country would be the competition currently on the market in the host country. “The degree of rivalry in the French market is affected by the continuing concentration of market share by two or three players, market rivalry is therefore currently classified as moderate.” The two or three aforementioned companies that have a hold in the French market would be Coca-Cola, Nestle SA, PepsiCo, Inc., and Suntory Group. Coca-Cola is the only one that has a corner in the energy drink market with several already in production, while the others do not distribute an energy drink to speak of in France. France’s beverage market can be “difficult for a new entrant to compete with the brand strength and reach of existing players.” Keeping that in mind, most of the energy drink products that Coca-Cola produces contain the questionable substances, taurine and glucuronolactone, that Zip-6 does not. This could provide Zip-6 with a significant advantage over such a large multinational corporation and also provide Zip-6 with a wonderful entrance into the European Union. The second determining factor as business prospects in France would be the limitations of trade placed in order by the European Union. The product of Zip-6 depends on the ability to import the “secret ingredient” to produce the
Due to the recent ban of the rival drink Red Bull in France, Zip-6 has decided to look into its potential prospects in France. Entering into the French energy drink market could be beneficial not only for Zip-6 but also for a country that is becoming increasingly concerned with the ingredients in energy drinks. In order to make an informed decision concerning the possible entrance into the French energy drink market Zip-6 needs to know what kind of competition currently exists, what the trade limitations might pose a problem, and what entry strategy would be best suited for the situation. One of the biggest influences for the company to enter into a country would be the competition currently on the market in the host country. “The degree of rivalry in the French market is affected by the continuing concentration of market share by two or three players, market rivalry is therefore currently classified as moderate.” The two or three aforementioned companies that have a hold in the French market would be Coca-Cola, Nestle SA, PepsiCo, Inc., and Suntory Group. Coca-Cola is the only one that has a corner in the energy drink market with several already in production, while the others do not distribute an energy drink to speak of in France. France’s beverage market can be “difficult for a new entrant to compete with the brand strength and reach of existing players.” Keeping that in mind, most of the energy drink products that Coca-Cola produces contain the questionable substances, taurine and glucuronolactone, that Zip-6 does not. This could provide Zip-6 with a significant advantage over such a large multinational corporation and also provide Zip-6 with a wonderful entrance into the European Union. The second determining factor as business prospects in France would be the limitations of trade placed in order by the European Union. The product of Zip-6 depends on the ability to import the “secret ingredient” to produce the