Analysis of Boston Beer Company's Business Strategy and Performance

This assignment analyzes the business strategy of the Boston Beer Company, focusing on its customer value proposition business model and differentiation strategy. The analysis highlights the company's use of seasonal beers and limited releases to enhance sales, supported by data indicating a 7% increase in net sales in 2016. The study also examines the impact of non-beer brands like Twisted Tea and Angry Orchard on sales volume. Furthermore, it addresses the challenges faced by the company, such as a decline in beer sales volume in 2016, which affected its ranking in the brewing industry. The assignment provides an overview of the company's strengths, weaknesses, and strategic responses to market dynamics.

Running head: BUSINESS STRATEGY 1
STUDENT NAME:
STUDENT ID:
TOPIC: BUSINESS STRATEGY
DATE: 27-09-2019

BUSINESS STRATEGY 2
Discussion
1 Business model
Boston Beer company is the second largest brewery in the US that is known with Samuel Adams
brand. The business model adopted by the company is customer value proposition (Massa,
Viscusi & Tucci, 2018). The company takes care of providing higher value to the customers and
ensures a higher price point strategy. This model has represented a major change in the beer
segment. Thereby taste and quality of beer matters in Boston Beer Company.
2 Strategy
Differentiation business level strategy is adopted by Boston Beer Company. Unique products are
provided by the company to enhance the sale and work on rapid innovation in the business.
Quality is the main stream that major companies focus towards profit and sales (Chesbrough,
2010). Seasonal products are produced by companies to gain the importance in the market. In
terms of Boston Beer Company, seasonal beers known as Sam Adams October and Sam Adams
Summer Ale are released with variety packaging. The seasonal beers are positioned in the market
with limited release sets.
3 Strategy influence
The differentiation strategy has worked well for Boston Beer Company as the total net sales was
increased to 7 per cent in the year 2016 compared to 2015. There were three non-beer brands that
were launched in the year 2001 with Twisted Tea brand, Angry Orchard brand in 2011 and Truly
Spiked Sparkling that was launched in 2016 ensures a higher sales volume to 5 percent in the
year 2017.
4 Working well for the company
Innovation in products, seasonal beers and limited release sets of beers are the strategies that are
working well for the organization. This means that the sales of beers and the revenue can be
increased with better beer segment.
Problem areas for company

BUSINESS STRATEGY 3
The major problem area for Boston Beer Company is the decrease in the sale volume. The sales
of beer was declined in 2016 by 100, 000 barrels. This led the company to be on the fifth largest
brewer in the US.

BUSINESS STRATEGY 4
References
Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range
planning, 43(2-3), 354-363.
Massa, L., Viscusi, G. Tucci, C., (2018). Business models and complexity, Journal of Business
models, 6(1), 59-71.

BUSINESS STRATEGY 5
Responses
Response 1
The case analysis included all the points in detail. The requirement of case analysis was done
with effective results while providing the business model used by the company, strategies that
are used by the company and the facts and figures that ensure the effectiveness of the case. The
problems and the strength of the company is discussed while providing interesting facts and
results of the company. The case was understood properly and the outcome was measured with
efficient study and analysis. All the points were mentioned very well while particularly clarifying
the business model and the business strategy.
Response 2
The analysis of the case study had a missing element of the figures that need to be noted. This
seems that the analysis was not done up to the mark. The figures and the facts were the missing
elements that need to be focused with strong view points. The evidence is clear and
comprehensive, strategy influence and the strategy selected is appropriate. However, the
presentation and the concepts are provided in detail with specific problem areas that are
mentioned and the strategies of the company.