Sodastream Case Study Example | Topics and Well Written Essays - 750 words

Sodastream - Case Study Example The key strategic issue facing SodaStream involves its North American market. The organization has to find a way of increasing its market share in the United States. Although the American market has a $40 billion home consumption market, the organization had only achieved $7 million in sales in 2008 (Subramanian 7). In order to penetrate the American market, it needs to fight established brands such as Coca-Cola and Pepsi. In addition, it must build an emotional connection with the American consumers. Achieving this would be a challenge because Americans have a significantly lower interest in the environment than the European consumers do. SodaStream believes that the fact that it does not use cans or bottles makes it more environmentally friendly than its competitors. The strategy would face a challenge in the American market since people love buying canned and bottled soda. Furthermore, it has to generate $1 billion in revenue by 2016 in an economy where its competitors are experie ncing sharp declines in revenue growth (8). The demand for Soda has been falling consistently over the past five years (IBIS). Consequently, growing its operation in the United States will be a significant challenge. SodaStream can address the key strategic issue by adopting one of the following strategies. Firstly, it needs to launch an aggressive marketing campaign. Although environmental awareness in the United States is low, an increasing segment of the population would be loyal to a brand that helps to make the world cleaner. In addition, it should leverage the close ties between America and Israel to connect with Americans. The two countries share a rich history. Secondly, it can commence an aggressive campaign against Coca-Cola. The strategy will give the company visibility. American culture celebrates the underdog and the company could benefit from this strategy. Third, the brand can focus on the home market. The marketing campaign