Coors Case

Topics: Brewing, Beer, Coors Brewing Company Pages: 44 (14894 words) Published: December 6, 2010
Case 4.0 Adolph Coors

Porter’s 5 forces analysis5
Generic Strategy23
Current Strategy24
Cluster Analysis24
The value chain for Adolph Coors Brewery26
Balanced Scorecrad31
Hill & Slack models32
The Wheel of Consistency explanation39
Core competencies40


In this case an analysis of the Adolph Coors Brewery will be made, to see what the competition is like within the industry, what are the company’s strengths compared to their competitors. What are their weaknesses and what can they do to mitigate them, or solve potential problems that could occur or has occurred. This can be done by performing various kinds of analyses on the company and the industry they are in. The tools that can be used are; Porter’s five forces, Hill's and Slack's method, PEST-DN, SWOT, core competencies, value chain and by using the value chain we can look at the wheel of consistency, to see if the company is working accordingly to their strategy or if a action plan is needed. The action plan should only be done for those areas within the wheel of consistency that is not complementing the company strategy. After having done the above analyses, it should be possible to see what the industry looks like for the company and what our position within that industry is. It should also show whether new moves/actions needs to be made in order to mitigate with potential problems that might have become visible during the analysis process.


The company was founded in 1873, in Golden, Colorado USA; the company was named after its founder Adolph Coors Sr. The Company only sold premium beer in the state of Colorado to begin with, but expanded in 1929 into the State of Arizona. The company did not like to take un-necessary financial risks, so they expanded only if they saw a demand in other states than Colorado. The company had by 1975 expanded their distribution of beer into 11 states. By the beginning of the 90’s the company had expanded into all states with a various range of premium beer. The company did not buy in more ingredients and raw material than they needed, because they had tight connections with suppliers and owned many of the various ingredients them self, by having water reservoirs, farms and coal facilities for energy providing to the company. The aging period of Adolph Coors beer was much longer than its competitors; they aged it for 70 days compared to the normal period of 20-30 days. The company also didn’t pasteurize their beer; instead they keep the beer refrigerated during the whole process, from development, to shipment and sales. This was an unusual way of dealing with beer and the process of this made the beer only last for 60 days at the most. By having these unique ways of making beer the company stood out compared to their competitors, but there is problems with this sort of processes as well. Due to the long production time and the fact that the beer would not last for very long, made it easier for competitors to get their beer out first on the market. The company tried to solve this by opening different distribution centres to where they could ship beer and from there ship it out to wholesalers. They also choose to pick wholesalers that in the company’s eyes did not have that much power and could because of this make them sell their beer and pretty much nothing else.

Product Life Cycle

Between the 1945 and 1985, due to the large consumption of beer was increasing, the brewing industry was growing well in U.S. Between 1960 and 1980, due to the customers had more choice for different brand of beer with lower price than before (price 30% fell...
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