Question

Carbon Corporation develops and markets soft drinks and related products in the United States. Its product line consists of three beverage​ brands: Carbon​ Soda, a carbonated​ drink; Health​ Aqua, an enhanced water​ beverage; and Mango and Orange​ Carbon, two​ fruit-based drinks. The​ company's CEO firmly believes that there is huge potential in the​ multibillion-dollar energy drink market. Which of the​ following, if​ true, would most strengthen the argument for Carbon to introduce an energy​ drink?

a) The demand for carbonated drinks is declining.
b) Health-conscious consumers are seeking alternative beverage options.
c) Mango and Orange Carbon have consistently high sales.
d) Competitors in the energy drink market have experienced significant growth.

Answer 1

The statement that competitors in the energy drink market have experienced significant growth would most strongly support Carbon Corporation's move to introduce an energy drink as it shows market viability and expansion.

Step-by-step explanation:

If the CEO of Carbon Corporation is contemplating venturing into the energy drink market, there are several factors that could strengthen the argument for this strategic move. Among the options provided, the statement that would most strongly support the case for introducing an energy drink would be that competitors in the energy drink market have experienced significant growth. This indicates that the market is not only viable but also expanding, presenting a lucrative opportunity for Carbon Corporation to diversify its product lineup and capitalize on market trends.

Additionally, while health-conscious consumers are seeking alternative beverage options, this suggests a shift in consumer preferences that could favor energy drinks if they align with wellness goals. Lastly, although the claim that the demand for carbonated drinks is declining is relevant, it highlights a challenge rather than a direct strengthening argument for entering an unrelated market segment like energy drinks.