Discussion: Putting New Fizz in Carbonated Beverages
SodaStream is revolutionizing a product that, for decades, did not seem to need or have room for a new and innovative idea. By offering a counter-top home appliance, and over 100 flavored syrups, it has turned "make-your-own" soda into a thriving company. In five years it has grown from being sold in 300 U.S. stores to 15,000 stores, and over 60,000 worldwide. It partners with Kraft, Campbell, and Ocean Spray on flavors; it even worked with Samsung on a new Samsung sparkling refrigerator. SodaStream does not compete head-on with the Coca-Cola and Pepsi-Cola companies of the world. It has created its own niche and is expanding exponentially, as U.S. sales increased 75 percent last year. Here, competitive advantage is the name of the game.
The goal of any market niche is to find an unoccupied spot in the market and fill it. SodaStream is operating in the shadows of the beverage giants and dominating in its fast-growing home-carbonation niche. With 10 to 25 percent penetration in some countries, the potential is significant in less mature markets.
Are you familiar with SodaStream or the concept of home-carbonation beverages? Go online and visit the SodaStream website (Links to an external site.)
Links to an external site.
. Explore how the company's "Why SodaStream" page of the website and its "About Us," "Vision and Mission," and "Brand Partnerships" pages. Even its "About The Plant" page helps students to understand the management philosophy of the company. Its "Milestones" page will provide not only a history lesson but insight into the focus of the company going forward.
Discuss
Analyze and assess the following discussion topics in your posting(s):
- What is the SodaStream "product leadership" strategy?
- How can SodaStream grow so quickly, not just in the number of stores in which the product is available, but number and variety of products?
- How does the SodaStream story relate to the competitive strategy concepts presented in the course text?
A discussion of the SodaStream story provides an example of how an innovative idea can not only survive but thrive, even when the product seems to compete against market leaders. In addition to offering hundreds of flavors, the company provides environmental benefits that it touts in comparative ads. SodaStream has also identified trends and taken advantage of them by adding to its product line with Xstream Energy, SodaStream Isotonic, and SodaStream Sparking Natural.
Be specific, Don't forget to be analytic, and put that critical thinking to use! You are expected to use the information gained via the SodaStream website (Links to an external site.) as a source and background information for your assessment. Do not post anything directly copy-pasted from the company website.