Creating a Competitive Advantage of a Diversified Company

The present work is devoted to investigate the peculiarities of diversification strategy into sports industry at a major transnational firm. While diversification has been acknowledged as a source for creating competitive advantages, there has been a distinct lack of study of company business extension into sports industry. The main objective of the work is to determine the sources for competitive advantages of the company which employs the strategy of diversification into sports industry. The theoretical approaches in the field of competitive advantage creation on basis of diversification strategy were studied. The features of business extension into sports industry were outlined. Utilizing the qualitative method of content-analysis macro- and microenvironment of energy drinks industry were analyzed and the key factors for success in energy drinks were identified. The sources for competitive advantages of Red Bull, which helped company to reach a dominant position on the market, were uncovered. The processes of Red Bull diversification were examined and the motives for business extension into sports industry were determined. In the end, the sources for creating competitive advantages of Red Bull company at the expense of diversification into sports industry were highlighted.