Coors Case Study
GSubject: Business Strategy
Case Study: Adolph Coors in the Brewing Industry
Date: 10-Aug-2010
Coors was very successful in the mid 1970s. What was it’s Strategy ?
Background
Adolph Coors company is 113 years old with it’s major sales in Brewerage sector. In 1985, Beer division achieved record sales of $ 14.7 Million barrels, which was 13% high than the previous year, that too achieved at a time when Beer Sales were getting consolidated.
Brewing division accounted 84% of Coor’s Revenues and over 100% of operating income. This means that all other units of Coors are running under losses and Coors need to improve on their Sales on Beers. Coors have plans to build second brewery at Virginia’s Shenandoah Valley
|The prospects of Coors in Brewing industry can be analyzed using Porter's five competitive forces: |
|1 |Threat of new entrants | | | | |
|2 |Bargaining power of suppliers, | | | |
|3 |Bargaining power of buyers, | | | | |
|4 |Substitutes and | | | | | |
|5 |Rivalry among existing competitors. | | | |
Strategies adopted –
• Backward integration that includes –
o Development and usage of aluminium package cans which was later followed by competitors
o Usage of natural spring water that differentiate from others
o Long term contracts with the farmers for the uninterrupted supply of raw materials
• Segmentation of the product by identifying fresh beer, which is unique in the beer industry
• Forming Distribution channels with weaker distributors to get more focus on Coors prodcuts.
Case Study: Adolph Coors in the Brewing Industry
Date: 10-Aug-2010
Coors was very successful in the mid 1970s. What was it’s Strategy ?
Background
Adolph Coors company is 113 years old with it’s major sales in Brewerage sector. In 1985, Beer division achieved record sales of $ 14.7 Million barrels, which was 13% high than the previous year, that too achieved at a time when Beer Sales were getting consolidated.
Brewing division accounted 84% of Coor’s Revenues and over 100% of operating income. This means that all other units of Coors are running under losses and Coors need to improve on their Sales on Beers. Coors have plans to build second brewery at Virginia’s Shenandoah Valley
|The prospects of Coors in Brewing industry can be analyzed using Porter's five competitive forces: |
|1 |Threat of new entrants | | | | |
|2 |Bargaining power of suppliers, | | | |
|3 |Bargaining power of buyers, | | | | |
|4 |Substitutes and | | | | | |
|5 |Rivalry among existing competitors. | | | |
Strategies adopted –
• Backward integration that includes –
o Development and usage of aluminium package cans which was later followed by competitors
o Usage of natural spring water that differentiate from others
o Long term contracts with the farmers for the uninterrupted supply of raw materials
• Segmentation of the product by identifying fresh beer, which is unique in the beer industry
• Forming Distribution channels with weaker distributors to get more focus on Coors prodcuts.