Research assignment

Ian Otero

Theory:

Uppsala model

Case:

Challenging sports beverage market: Gatorade thriving Uppsala Model

Gatorade is one of the many drinks focused on athletes in the market. However, they
stand out from the competition as a product that is consumed in different environments and by
any type of person, becoming one of the most famous type of beverages in the market. This has
led Gatorade to remain competitive in the market both in advertising and in relation to various
retailers and consumers, since it is very common to find this drink in several stores all around the
globe.

Behind this subsidiary we find the giant PepsiCo company, which allows Gatorade
company the advantage of being able to produce its beverages in different countries, thus
managing to supply a great demand for sports drinks.

Gatorade struggles to remain competitive in the market against emerging products and
brands that may hunt to compete in the sports drink market, because although the company has
managed to bring the psychic distance by taking advantage of a giant company such as PepsiCo in
this way "others have claimed that the Uppsala model is not valid in situations of highly
internationalized firms and industries". (Hollensen, 2020). Even though it is noteworthy that the
company faces various challenges that must overcome in its constant internationalization process
where, although it has positioned itself in different markets both geographically and in
commitment, it must still pursue to take advantage of this model for greater integration and stable
positioning in a market dwelling a constant and very strong growth market. "Gatorade, which
controls 70% of the sports drink market, is facing pressure from new rivals like coconut water as
consumers focus more on ingredients than ever before." (Gestión, 2016)

This case will talk about the brand development in relation to the Uppsala Model,
analyzing how Gatorade has managed internationalization marketing strategies to penetrate the
market and seek to foster a demand that has been constantly increasing, while it must face new
challenges that supposes a growth and diversification of the market. "The growing athlete
community and an increasing number of sportspersons in developing countries are some of the
other factors driving the market". (GetNews, 2020). Gatorade is also looking forward to supplying
the offer through a geographic diversification and market commitment.
Theory

Krzysztof Wach article on “The evolution of the Uppsala model: Towards non-linearity of
internationalization of firms”. Suggests that market knowledge and commitment should be
transformed into commitment decisions and current activities (Wach, 2021), which may be a
useful theory to understand why these types of theories receive various criticisms and how they
are more than updated to the needs of today's society, showing us a path that could illustrate
Gatorade to face the various risks involved in the innovation and diversification that this beverage
market is experiencing.

Bibliography

Getnews. (2020, April). Sports drink market size, share, growth: Industry Trends Report,
2025. Sports Drink Market Size, Share, Growth | Industry Trends Report, 2025. Retrieved March
15, 2023, from https://www.grandviewresearch.com/industry-analysis/sports-drink-market

Hollensen, S. (2020). In Global marketing (8th ed., pp. 82–83). essay, Pearson Education.

Gestión, R. (2016, August 31). PepsiCo Introduces New Organic Version of Gatorade.
Gestión. Retrieved March 15, 2023, from https://gestion.pe/economia/empresas/pepsico-
presenta-nueva-version-organica-gatorade-147496-noticia/#:~:text=Gatorade%2C%20que
%20controla%20el%2070,que%20nunca%20en%20los%20ingredientes

Wach, K. (2021). The evolution of the Uppsala Model: Towards non-linearity of

internationalization of firms. International Entrepreneurship Review. Retrieved March 15, 2023,
from https://ier.uek.krakow.pl/index.php/pm/article/view/2033