SodaStream is revolutionizing a product that, for decades, did not seem to need

Question

SodaStream 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. SodaStream 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. SodaStream 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 SodaStream or the concept of home-carbonation beverages? Go online and visit the SodaStream website (Links to an external site.)Links to an external site.. Explore how the company’s “Why SodaStream” page of the website and its “About Us,” “Vision and Mission,” and “Brand Partnerships” pages. Even its “About The Plant” page helps students to understand the management philosophy of the company. Its “Milestones” page will provide not only a history lesson but insight into the focus of the company going forward.

What is the SodaStream “product leadership” strategy?

How can SodaStream 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 SodaStream story relate to the competitive strategy concepts presented in the course text?

Explanation / Answer

As per my understanding, SodaStream "product leadership" strategy is to find, locate, and fill the unoccupied space in the fast-growing home-carbonation market. The strategy is to concentrate on the less mature markets. It is also important to avoid competition with the well established brands like Coca-Cola and Pepsi as well as make use of the other brands like Samsung and have proper selection for Brand Partnerships.

No idea about the course text but sure to suggest that social media and advanced information technology may be exploited for faster growth of SodaStream.

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