-------------------------------------------------
Case 4.0 Adolph Coors -------------------------------------------------
Index
Index 2
Introduction 3
Background 3
Porter’s 5 forces analysis 5
SWOT 13
PESTDN 21
Generic Strategy 23
Current Strategy 24
Cluster Analysis 24
The value chain for Adolph Coors Brewery 26 Balanced Scorecrad 31 Hill & Slack models 32 The Wheel of Consistency explanation 39 Core competencies 40 Strategy 41
-------------------------------------------------
Introduction
In this case an analysis of the Adolph Coors Brewery will be made, to see what the competition is like within the industry, what are the company’s strengths compared to their competitors. What are their weaknesses and
…show more content…
So the brewing industry stayed in a fast growth stage in 1960 to 1980. After the fast development, the demand grew less than 1% between 1980 and 1985. With the large advertisement investment (about 10% of sales) and more choices, the beer industry had owned a fix drinking market share. For these, the brewing industry had already established a strong foothold which meant they already reached the maturity stage.
In the plc diagram above, the beer brands Coors Light and Coors Banquet is shown in relation to their respective stages of their lifecycles. Coors light is the newest beer of the two and is in the beginning of the growth face. Coors Banquet is more towards the beginning of the mature face, since it’s their oldest brand and it is not growing that much anymore.
-------------------------------------------------
Porter’s 5 forces analysis
Industry Competitors – Rivalry among Existing Firms
High fixed costs
- Raw materials cost major breweries over half of their net revenues.
- Large volumes results in high storage costs. Beer storage is also difficult.
Slow industry growth
- The industry grow is staggered (less than 1%). This will result in a market share competition that will benefit the companies who have the means to survive, e.g. the means to lower their costs.
Numerous or equally balanced competitors
- Equally balanced competitors’ posses the financial power to wage a financial price war. The competitors are able to guard their interests and are
The Problem(s). Manson and Associates was doing a research to determine market potential of a Coors beer distributorship for a two-county area in southern Delaware on behalf of Larry Brownlow so Larry could find the answer for the following question:
Per capita beer consumption in the country had been stable for many years. In order to find new opportunities
2) Evaluate Boston Beer’s performance relative to its peers (Compare BBC's ratios to the ratios of its peers in exhibit 4). (Hint: how do differences in operating strategies translate into differences in financial ratios? Are there
Throughout most of its history, the Coors Brewing Company (Coors) has been a regionalized brewer within the United States, specializing in high-quality beer through by virtue of its source water selection, stringent production standards, and cold filtered brewing approach. As the company expanded its distribution to new markets within the U.S. in attempt to gain market share, it made a strategic decision to maintain a majority of its brewing operations at its primary production facility in Golden, Colorado. This decision was based upon the desire to preserve its core production strengths through close family control. However, as the company desires to expand its market presence beyond the
In 1873, Adolph Coors built a small brewery called Coors in Golden, Colorado. Now, as of 2014, this small brewery has become the largest single brewery facility in the world. Over the years, the company has expanded their market and has become the third largest brewer in the United States.
Mr. Larry Brownlow needs to decide whether or not to apply for the Coors distributorship in southern Delaware.
A documentary film made in 2009, Beer wars features and describes the American beer industry distinguishing between the large and small breweries. The large breweries feature some main corporate companies like Coors Brewing Company, Anheuser-Busch, and Miller Brewing Company whereas the small breweries include craft beer producers like Moonshot 69, Stone Brewing Company, Dogfish Head Brewery, Yuengling, and others. The documentary shows how the beer market is controlled through advertising and lobbying, which is harmful for the competition in the market. There is a reason why the small companies are falling behind and the large corporates are controlling the market, which in turn makes it essentially oligopoly economy.
The Coors Brewing Company was founded back in 1873 by two German immigrants Adolph Coors and Jacob Schueler. The two combined invested $20,000, $18,000 of which came from Schueler and the other $2,000 from Coors. The location of the brewery was in the mining town of Golden, Colorado. This location was picked because Mr. Coors believed the key ingredient in beer was the water source. The river that flowed through this mining town was perfect for his beer. The two investors worked together for seven years until Coors bought out Schueler and became the sole owner of the brewery in 1880. When prohibition finally hit Colorado in the year 1916, Mr. Coors was forced to find other means of making money. The brewery was converted to produce malted milk which he would then sell to candy companies. Four years after Adolph Coors passing, in 1929, prohibition is ended and his son, Adolph Coors Jr., takes over the family business. The distribution range of the company quickly expands and by 1948, it stretches across 11 states. It would remain this way for almost 30 years before they start to expand to try and reach a nationwide audience. In 2005, now in its fourth generation of Coors family management, the Coors Brewing Company votes to merge with Molson Brewing Company in Canada to form the Molson Coors Brewing Company. Together they are the world’s seventh largest brewer. Two years later
The brewing industry can be characterized by Porter’s Five Forces framework. New entries to brewing have a relative ease in creating home micro-breweries, which is aided by
A newly-appointed director of a small German beer brewer must prepare to vote on three issues coming before the board of directors the next day: (1) approval of the financial plan for 2001, (2) declaration of the quarterly dividend, and (3) adoption of an incentive compensation plan for the marketing manager. The student’s task is to evaluate the past and prospective financial performance of the company and to critique its liberal credit and inventory policies. The objectives of the case are to:
Volume decreased for the first time in over twenty years in 1975 by four percent, during that same time Coors started to push out further in an attempt to become a national brand. 1985 marked a major year for the company as it set records in volume sold and revenues from the brewing division. Between 1975 and 1985 there were major changes in the company that eventually led to the company possibly opening its second brewing facility in history in Virginia. Through these years there were many new strategies implemented to foster this growth. In this paper I will diagnose key decisions, analyze potential solutions and show the actions needed to achieve the suggested changes.
Beer has a long history. In 2000 B.C.E., Sumerians had prepared eight different beer types, ranging from “strong,” “red brown,” and “good dark” (Mauk, 2013). Breweries have created their own recipes, brewed their own beers—some with alcohol, some without. Over the past few years, craft beer gained steady market share away from the national and international breweries (Murray & O 'Neill, 2012). Separating one beer from the next is the product itself, and what the product has to offer. Competition is ferocious due to more informed, sophisticated consumers, as well as globalization and the spread of technology (Murray & O 'Neill, 2012).
According to the result in the figure, the directional vector was located in the lower right or competitive quadrant of the SPACE Matrix. . The higher IP rating showed that Adolph Coors are in the attractive industry and has competitive advantage over its rivals. However, this company has week financially statement that resulted in the FP in stability environment. The competitive quadrant shown that Adolph Coors are in the high growth industry and possess a major competitive advantage. This result indicted that Adolph Coors was recommended to implement the competitive strategies. Competitive strategies that suitable for Adolph Coors include backward, forward, and horizontal integration; market penetration; market development; and product development.
This report examines the current competitive strategies of Coopers Brewery Limited (Coopers); a family owned South Australian based beer producer.
Red Bull’s promotional efforts are unique in a variety of ways when compared to it’s mainstream competitors. Instead of promoting the quality of Red Bull’s taste, they emphasized the effect it had on the drinker such as “increased performance, concentration, reaction time, speed, vigilance, and emotional status” (428). The company gained brand recognition by giving away free samples from a fleet of “logo-bearing off roaders” operated by young attractive operators and word of mouth (429). The company also agreed not to say anything in response to the rumors that flourished about the product ingredient taurine which was said to be a derivative of bull testicles or even bull semen. Instead of trying to put out