Drivers of Change and Industry Dynamics in the Beer Industry

Running head: Business Strategy
Business Strategy
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1Business Strategy
A list of drivers of change and industry dynamics that the brand management
team needs to bear n mind in its strategic decision making.
Entry or exit of global firms
 The beer industry of United States seems to be difficult since two major companies of
beer holds approximately 80% market share of US beer industry.
 The existing companies, especially the two major companies have a large range of
resources including financial aspects and infrastructures are modern.
 The industry is occupied by large number of brewing companies which makes the
industry competitive.
Changes in industry growth
 The supplier power is low in the beer industry.
 The buyer power is high with a large number of wholesalers as well as distributors
accountable for selling the product to a wide number of retailers.
 The federal law of the country imposes restrictions on the direct sell to consumers as well
as retailers.
 Even though 85% of all types alcohol sold are beer, the sales margin of wine is also high.
 Over the past ten years, the increase of the consumption rate of beer has been more or
less stagnant, instead a slight decrease has been observed, whereas the consumption rate
of wine has surprisingly increased per capita.
 The competition within the industry is high along a wide variety of beer.