How has Red Bull been able to create and maintain a competitive advantage? Suggest a strategy or idea that Red Bull can use to stay competitive in the industry. What could Red Bull do to move from being a “luxury and sports drink”? Red Bull has been at the forefront of the energy drink industry with its well-developed marketing and advertising plans. Red Bull gains its competitive advantage by using lifestyle, music and culture to its advantage, says ARC. In my opinion, Red Bull is the pioneer of energy drinks, they are the leaders in their industry, letting others follow. They also use their brand image as a great selling point. Their products have a stylish design and they also employ knowledgeable people to give samples to potential consumers. Such strategies allow them to stay ahead of their competitors. However, to grow its brand, Red Bull may move into sportswear for the extreme activities it sponsors. For example, they can create gloves and helmets for bikers, insulated coats and goggles for snowboarders, and oxygen tanks for snorkelers. This would represent a major investment for their already profitable business, but it could be difficult for consumers to take this expansion seriously. They can expand under the impression that Red Bull gives you wings, and will be even more beneficial on the slopes. If they use similar marketing strategies to what they used with the energy drink, I am confident in their ability to achieve this expansion.