The shares of Monster Beverage Corporation still show strong growth signs despite slightly missing out on its cut of expectations in the financial period of 2012. This year we can see that the corporation has felt a surge in its share price that has been effectuated to the extent of more than double this year. As we can see that this could only have happened because of straight down management strategies of great accord that have managed to tap into the market segments that re most viable. There is more contemplation as to the growth and more speculative interest by stakeholders towards the performance that is being exhibited by Monster Beverage Corporation.
The market that Monster Beverage is up against is the range that is particularly becoming even more competitive with the inclusion of “big boy” competitors like Coca-Cola energy drinks with the brand Relentless. UK and other Western Europe market form a big chunk of the company’s sales region and this competition has been steeped a notch higher in recent times. Hence that being said we have seen decisions being made by the company to transition the beverage line to the conventional foods line for business reasons. With this transition there will be a competitive advantage that is regarded as the most important aspect of the business. Tax exemption waivers will be accorded to the company hence will be good for the company and will go a long way in saving them money.
The company is yet to venture with all its lines of products into the developing nations markets this poses great potential for tapping into new markets that may lead to more profitability.
References
“Monster Beverage Reports 2012 Fourth Quarter and Full Year Financial Results” retrieved from
http://globenewswire.com/news-release/2013/02/27/526812/10023424/en/Monster-Beverage-Reports-2012-Fourth-Quarter-and-Full-Year-Financial-Results.html
“Monster Beverage C.E.Os drags coffee into the caffeine consumption debate” retrieved from http://www.foodbusinessnews.net/articles/news_home/Financial-Performance/2013/02/Monster_Beverage_ceo_drags_cof.aspx?ID={3ACE591F-AFC4-4997-B6F8-E0EFD3F429EC}&cck=1
