Business Strategy: Change Drivers, Dynamics & Success Factors in Beer

This business strategy report analyzes the drivers of change and industry dynamics within the beer industry, particularly focusing on the entry or exit of global firms, changes in industry growth, cost and efficiency, product and marketing innovation. It highlights the competitive landscape, the power of suppliers and buyers, and the impact of trends like crafted beer consumption. The report also explores the strategic group map of the beer industry and identifies key success factors for companies like Boston Beer Company, emphasizing manufacturing, distribution, and marketing-related aspects, as well as pricing strategies and product variety. This analysis aims to provide insights into achieving successful market entry and maintaining a competitive edge within the industry.

Name of the student
Name of the University
Business Strategy

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.
A list of drivers of change and
industry dynamics

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.
A list of drivers of change and
industry dynamics

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.
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.
A list of drivers of change and
industry dynamics

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.
A list of drivers of change and
industry dynamics

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.
A list of drivers of change and
industry dynamics

Strategic group map of the
beer industry

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
More opportunities can be generated in
terms of high sales margin, if the company
builds good professional relationship with the
distributors.
A list of key success factors for
Boston Beer Company

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.
A list of key success factors for
Boston Beer Company

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