A Focus on Vegan Ingredients

Sustainability Advantage

In the development and ultimate success of the product a sustainability advantage will be essential to ensure the maintenance of its potential market share and value. While power Max energy drink comes in, to an already saturated energy drink market place which produce and sell both Vegan and non vegan energy drinks the one major sustainability advantage and that will maintain the value of power max within the market includes the fact that the drink will be exclusively a vegan drink developed from only natural vegetable products unlike most of its competitors which employ the use of Vegan Taurine which has been effectively synthesized (McFarland, 2019). For students who are delving into business dissertation help, evaluating such sustainability advantages can provide the most valuable insights into market positioning along with consumer preferences.

USP Analysis

This analysis will highlight factors of Power Max energy drink that are significantly different from the substitute’s products within the market and therefore highlight its competitive and sustainability advantage over its competitors.

One of the differentiating factors of this product from its competitors within the market includes the composition of the product as well as its price. While most of the substitute products (vegan energy drinks) within the market according to McFarland (2019) contain synthetic Taurine, this specific products is exclusively made from organic vegetable products that are not in any way synthesized thereby making it a unique products in comparison to its substitutes. The company will effectively patent the manufacturing rights of this type of vegan energy drink so as to ensure the maintenance of the competitive advantage over its competitors in the open market. The product is also therefore poised to sell at a much lower price than the average market substitutes further giving it a unique cheap selling proposition that is guaranteed to retain its market sustainability.

The development and manufacturing process of Power max energy drink in addition is based on a completely organic process that does not take into account any synthetic ingredients and this ensures the drink is absolutely vegan which should make it the most preferred vegan energy drink in the market thus further enhance the products sustainability advantage.

In addition the marketing and selling process of the product in the market is significantly different from the strategies taken up by other energy drink companies. For instance while most energy drinks are marketed and sold in convenience stores and supermarkets , Power max is set to market and sell in these outlets as well as beverage shops such as coffee and tea houses which effectively opens up its market and sales point as well as customer range thereby enhancing sustainable advantage.

These distinct and unique qualities of the energy drink should impact its stand out among other energy drinks and secure a competitive advantage which should not only propel its entry into the market but also effectively and efficiently enhance its success within the market with synthetic vegan energy drinks. In addition the business model set up including a completely organic manufacturing project further minimizes the cost of production which makes the drink quite viable when it comes to cost of production as well. Marketing techniques being similar to the other energy drinks in addition to using tea, coffee and other beverage stores in addition contributes towards its viability and minimization of production cost. Eventually the drink should be much cheaper to produce per unit as compared to other available energy drinks which makes the scope of the company’s financial calculations viable and the whole model economically viable especially in relation to the current market set up.

VRIO Analysis

According to Jurevicius (2013) The VRIO framework is a strategic analysis tool designed to help organizations uncover and protect the resources and capabilities that give them a long-term competitive advantage. Iy assists the organization in identifying some of the strategic advantages in business that they have over the competitors and protecting them from leaking to these competitors thereby maintaining the advantage and being more productive and profitable. While the product itself being an authentic vegan energy drink represents the most proceed possession of the company, any soft drink company can significantly imitate the development process of this drink and as such take away the companies competitive advantage making the formula for the drinks manufacturing much more of an important asset to the company than the drink itself.

Valuable

The product being distinctly different from all the other energy drinks within the market due to its absolute vegan nature in the manufacturing and processing point takes it quite valuable to the company and as such worth protecting from competitors in a bid to maintaining competitive advantage. Upon hitting the market and securing a market share it will be the only energy drink that is purely vegan and as such much more effective and efficient for vegans than other energy drinks produced by synthetic taurine which is not necessarily vegan. The value of the energy drinks formula for manufacture is as such quite a valuable factor of the business that guarantees it sustainable advantage.

Rare

Given the value of the product as well as the fact that it is the only energy drink in the market that is absolutely vegan given the lack of use of synthetic taurine in its manufacture, the product is also therefore quite rare in the market and economy and as such is quite valuable. The rareness of the product intended for the market makes it unique and as such advantageous when it comes to sustainability. Copyrighting the formula for the energy drink development just like other major beverage companies such as coca-cola gives the full control of its production and supply to the company itself which significantly impact its advantage,

Imitability

While the formula is not entirely difficult or expensive to imitate, the production rights of the product is reserved by the companies and as such prevents the competitors from imitating it and taking advantage of the competition in the market. The company will be able to produce the energy drink on its own given that ist is not quite expensive to produce in this way the valu, rareness is maintained and stored within the company.

Organization

The organization in addition possesses effective resources that are effective and efficient for the wide scale production of the energy drink. Through contracting effective financial support from financial institutions and maintaining the sustainability and competitive advantage of the product, should be able to embark on a wide scale production of Power max vegan energy drink and significantly gain market share and develop within the first 3 years of its development to a house hold vegan energy drink available in multiple outlets all across the globe.

The products uniqueness in terms of being absolute vegan as well as the preservation of its development process should be able to enhance its sustainability advantage in the market.

Conclusion

In conclusion, both the UPS Analysis and VRIO analysis point out significant competitive features within the product including being the first natural vegan energy drink with no synthetic ingredients. While this is critical to the business productivity and provides an instant sustainability advantage to the company, its protection is necessary to prevent imitation and thus preserve the company’s competitive advantage over the substitutes companies in the market. As such developing a patent right for the energy drink formula protects the companies trade secret and ensures the maintenance of a sustainability advantage.

References

Jurevicius O. (2013). VRIO framework. [online]. Available at https://strategicmanagementinsight.com/tools/vrio.html

McFarland T. (2019). The ultimate guide to Vegan energy drinks. [online] iamgoingvegan.com Available at https://www.iamgoingvegan.com/vegan-energy-drinks/

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