Soda Stream 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. Soda Stream 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. Soda Stream 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 Soda Stream or the concept of home-carbonation beverages? Go online and visit the Soda Stream website. (Links to an external site.)Links to an external site. Explore the company’s website to better understand the management philosophy of the company. (Some links you may not typically use on a company’s website, but might be useful, include investor relations, and some of the reports and presentations found there.)
Discuss
Analyze and assess the following discussion topics in your posting(s):
- What is the Soda Stream “product leadership” strategy?
- How can Soda Stream 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 Soda Stream 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. Soda Stream has also identified trends and taken advantage of them by adding to its product line with Xstream Energy, Soda Stream Isotonic, and SodaStream Sparkling Natural.
Be specific, but limit your initial posting to 400 words. Don’t forget to be analytic, and put that critical thinking to use! You are expected to use the information gained via the Soda Stream website (Links to an external site.)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.
Your first posting is due on the fourth day of this module at the latest. In order for you to receive credit in the online Discussion Board, active and frequent participation throughout the Module is required. In addition to your opening posting, you must respond to at least two of your classmates’ responses. Your two required commentary postings to your classmates must be a minimum of 150 words each.