IB Business Management

I wasn't aware what 'functional drinks' are - but this clip tells you what they are, starting by looking at the initial success of Red Bull. However, aside from the importance of marketing in explaining the rise of the 'functional drink' this clip looks at the development of the sector, and you might be able to apply your knowledge of the Ansoff Matrix - market development anyone?

But do they do what they claim? I'd doubt it...

I could put this on a number of board but think it's most appropriate here - showing a great example of diversification, allowing for a reference to the Ansoff Matrix - with Xiaomi looking at diversifying revenue streams, and exploiting its strong brand.

It also  highlights the extent to which China is trying to gain a dominant position in the electric car market.  

This is an interesting look at diversification - Ansoff Matrix anyone? - and how Foxconn have moved into the market for electric vehicles, buying an electric vehicle plant in Ohio.

Foxconn are eyeing a move into the sector, translating their production methods for iPhones into the electric vehicle sector. Foxconn is a so-called contract manufacturer, and sees itself a offering other brands a highly efficient manufacturer to lower the cost of EV manufacture. 

Ansoff Matrix the life out of this development, with the news that Crocs are going to launch a cowboy boot, replete with spurs which, the company is a response to consumer demand. Really? 

Either way, it's either a good example of product development - the launch of a new product in existing markets, or, if you think that it's designed to appeal to people outside of the traditional Crocs market, might it be diversification? That said, I can't see many Texas ranch hands wearing them. 

Another lovely example of product development - and an application of the Ansoff Matrix, as Starbucks have launched a new range of products, olive oil infused coffees, initially in the Italian market. 

Starbucks only has 20 stores in Italy, an economy with a cafe culture based on independent, family-owned cafes, and has found it difficult to establish itself.  

A nice application of the Ansoff Matrix for you: in response to falling profits, Tesla is reported to be accelerating the roll out of some new models from the end of 2025.

It's classic product development, and part of a response to falling profits by looking to boost revenues as well as by cutting jobs, with 6,000 jobs going in Texas and California. 

An interesting example of diversification, with Chinese tech giant Xiaomi entering the market for electric cars. It will be interesting to see whether this is a successful move or not, and allows for consideration of where it fits in the Ansoff Matrix, the importance of branding and the importance of context. Whilst Xiaomi is a household name in China, the brand doesn't have much global traction.

The notion that the once-frumpy Birkenstock is being floated in the US stock market would once have been seen as fanciful in the extreme. However, the private limited company are looking to raise up to $1.6bn through the initial public offering (IPO) to effectively continue doing what they're already doing in looking at limited product development, with some feeling that the brand name won't support more adventurous forms of risk-taking.  

Globalisation has seen brands look to expand into fast growing markets and in this case it's Pret A Manger that's decided to enter the Indian market. Such moves are both interesting and risky, although in this case Pret has partnered with a branch of Reliance Industries, owned by India's richest man, Mukesh Ambani, so they should be well-placed to adapt to the Indian market and share the risk; it's Reliance's first move into food and beverage retail.

A lovely Business Management Monday morning starter for 10, with the news that BrewDog are entering the Chinese market, having partnered with Budweiser China. Classic application of the Ansoff Matrix by 8 o'clock, anyone?

It's also interesting to note that this isn't being universally approved of - not least in the present geopolitical environment - and others are pointing the incongruity of supposed 'punk' BrewDog partnering with Budweiser.