Table D: Liquor and Beer License Estimates for Market Area for 1990-1995
Type of License 1990 1991 1992 1993 1994 1995
All beverages 330 340 350 365 385 405
Retail beer and wine 55 60 60 65 65 70
Off premise beer only 210 220 225 230 235 245
Veterans beer and liquor 12 12 13 13 12 12
Fraternal 20 20 20 20 20 20
Resort beer and liquor 25 25 31 32 34 36
Table D above denotes that the number of beer and liquor licenses in the market area is anticipated to boost increasingly from 1990 to 1995. This gives you an idea about the competition that Coors will experience. One can uphold that from the data in Table D, it is demonstrative that Coors Beers has a considerable amount of competition. Therefore Coors Beers ought to gauge the disposition and strength of competitive forces operating in the market area. Coors Beers should consider the fact that since there is a progressive increase of all beverages licenses from 1990 to 1995, could possible mean that competition from new entrants could pose a threat as this would increase competition. Also from this increase, we further infer that there are possibly reasonable entrant barriers to trade. This means that the market area will further attract new entrants.
Table D also has a listing of the different substitutes available in the market area. There are a considerable number of substitutes available that a consumer can choose from. Without hesitation, Coors Beers will have to consider is, whether or not these substitutes are sturdy enough substitutes for their product and ensure that consumers do not switch to the substitutes. As there are many substitutes available consumers can switch to those anytime when not satisfied with Coors product. Coors must also be aware of the fact that substitutes pose the most threat to their productivity. Coors must ensure by all means possible not to drop quality standards and service standard. One of the requirements for Coors would be to find... [continues]
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