Business Strategy: Brand Management Team's Strategic Decision Making

This report provides an analysis of business strategy, focusing on the strategic decision-making processes within brand management, particularly in the context of the beer industry. It identifies key drivers of change and industry dynamics, such as the entry/exit of global firms, changes in industry growth, cost and efficiency considerations, product and marketing innovation. The report also presents a strategic group map of the beer industry and outlines key success factors for companies like Boston Beer Company, emphasizing manufacturing, distribution, and marketing-related aspects, as well as pricing strategies and product variety. The analysis underscores the importance of innovative marketing and cost management for competitive advantage in the beer market.

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.

2Business Strategy
 While some companies focuses on low pricing strategy, on the other some companies
strictly eye on the quality of the product.
Changes in cost and efficiency
 Around $975 million is spent by the brewing companies in a combined way for the
purpose of advertising.
Product innovation
 There is an increased trend of crafted beer for which a large number of new companies
offering crafted beer were seen to be entered in the industry making up the industry
further more competitive.
Marketing innovation
 All the companies inclusive of large as well as small companies exclusively focus on the
marketing of their products. Advertisement has been carried out by the companies over
traditional media as well as social media in order to promote their products and brand
image.

3Business Strategy
Strategic group map of the beer industry
Source: created by author
A list of key success factors for Boston Beer Company
While entering in the industry, following factors can be on focus so that market entry can be
successful.
Manufacturing related KSFs
 Hence, in order to keep a balance and to assure that the company does not experience
loss, cost can be reduced in manufacturing.
Distribution related KSFs

4Business Strategy
 More opportunities can be generated in terms of high sales margin, if the company builds
good professional relationship with the distributors.
Marketing related KSFs
 The marketing can be a great key success factor provided the company uses innovative
marketing strategy towards strengthening the brand of the company.
Other types of KSFs
 In order to compete with large existing brands, a low price range can be a major key
success factor for the company in terms of accelerating the sales rate.
Manufacturing related KSFs
 There is huge scope of for Boston Beer Company if the company offers a wide variety in
categories and flavors keeping the quality on focus.