Red Bull PESTEL Analysis

By John Dudovskiy
June 25, 2016

Red Bull PESTEL AnalysisRed Bull PESTEL analysis facilitates a critical analysis of external factors affecting the energy drink manufacturer. The acronym stands for political, economic, social, technological, environmental and legal factors. Below is a brief analysis of the potential impact of each of these factors on Red Bull GmbH.

Political Factors

There are some political factors that affect Red Bull directly or indirectly. Specifically, a range of political factors affecting Red Bull directly include government stability or instability, levels of corruption and bureaucracy in markets, the role and freedom of press, home market lobbying initiatives and home market protectionism measures.

Red Bull GmbH attempts to influence certain political factors and relevant rules and regulations via its lobbying efforts. For example, once US Food and Drug Administration (FDA) set “to investigate reports of illness, injury or death of people who took products marketed as “energy drinks” or “energy shots.[1], “Red Bull North America has hired Podesta + Partners, the lobby firm run by power broker Heather Podesta, to “educate policymakers regarding energy beverages,” according to Senate records”.[2]

Economic Factors

The financial performance of Red Bull is a subject to a number of economic factors. Macroeconomic stability is one of the main economic factors affecting businesses in general and businesses operating in premium segment such as Red Bull GmbH in particular. For example, as a direct impact of the global economic crisis in 2009, Red Bull’s “net sales came in at EUR3.27bn, down 1.5% on the previous 12 months”[3].

The exchange rate between EURO and other currencies is another major factor with direct implications on Red Bull revenues. Specifically, a weak EURO throughout 2015 played a major role an increase in revenues by 15 per cent during the year, from EUR 5.110 billion to EUR 5.903 billion.[4] Moreover, additional economic factors that can affect Red Bull include inflation and tax rates, rate of unemployment, cost of labour and others…

Red Bull GmbH Report contains the full discussion of Red Bull PESTEL analysis. The report also illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Red Bull. Moreover, the report contains analysis of Red Bull’s marketing strategy, its leadership and organizational structure and discusses the issues of corporate social responsibility.

Red Bull GmbH Report

[1] Energy “Drinks” and Supplements: Investigations of Adverse Event Reports (2012) US Food and Drug Administration, Available at:

[2] Ho, C. (2013) “Monster Energy, Red Bull turn to lobbyists for help” The Washington Post, Available at:

[3] Red Bull Posts Sales Decline As Competition In Energy Drinks Grows (2010) BMI Research, Available at:

[4] The Company Behind the Can (2016) Red Bull, Available at:

Category: PEST Analyses