Adolph Coors in the Brewing Industry

ADOLPH COORS IN THE BREWING INDUSTRY

Industry and Market Analysis

The brewing industry has many principal characteristics that can not be compared with any other. Basically, in US the industry has six main key competitors that supply the entire country of course with a small number of lesser competitors. This shows a specific aspect of the industry as well which can be resumed as competition between key competitors is though and new entrants have a hard time competing. Potential entrants to the industry face many difficult barriers to entry by the existing bigger brewers. The industry’s market for customers has grown only at a pace of less than one percent. Existing market-share is highly competed over as well. All breweries in this industry are legally bound that they can not establish their own outlets, besides at the location of their breweries. This means that each company must have a customer base of either retail stores or wholesalers, with a few exceptions of course.

Distribution within the market is another specific point that describes the industry. Naturally, the firms that can supply their customers in cheaper ways are better off than those who can not. Advertising is also considered as an important area that creates advantage among competitors in this kind of industry where customer loyalty is also considered as a competitive advantage.

Coors in the Brewing Industry

Coors brewing company differentiate through the quality of its products and the image of quality and brand name. Quality is considered as one of the most important aspect and Coors offers the best beer possible for its customers. Industry specific conditions showed the necessity of a change in their strategy to anticipate future conditions. Brewing processes which

were slow were not fitting the new strategy of the company. Coors strived for quality and all elements of their strategy were in parallel. The strategy obviously supported the quality and image with customers which...