Josh Dogor's Blog

Response to an External Blog: Has Sodastream Reached its Saturation Point?

http://iveybusinessreview.ca/blogs/lsavinihba2015/2014/10/03/bubbles-tank/

http://www.surlatable.com/images/features/101210/soda_stream_maker_v3_image_04.jpg

The blogpost above provides interesting insight into Sodastream, and focuses on several key talking points of recent COMM 101 lectures. Sodastream is a company that allows customers to make their own pop or carbonated beverages according to their own preferences from the comfort of their own home. Their primary value proposition is that they offer a healthier, cheaper alternative to traditional cola by offering individual customizability and a large assortment of flavor selection. Consumers can control what goes into the soda that they are drinking and this is Sodastream’s Point of Difference. They have developed a product that has less calories, carbs, sugar, sodium, and caffeine, and is also $0.22 cheaper/litre of soda compared to generic brands.

Despite developing a new segment of the cola market through a differentiation strategy, Sodastream is currently experiencing stagnated growth and is under threat with new competitors (backed by Coke-Cola) set to enter this marketspace. They are being forced to revaluate their business model and plan because they must find ways to regain steadily increasing profits. The challenges that Sodastream are facing proves that the business landscape is constantly
changing and therefore a business’s strategies must change accordingly. The article outlines several potential routes the company can take to increase sales. Whether or not Sodastream can bring life back to its flattened sales will be an interesting story to follow in the near future.