ADOLPH COORS IN THE BREWING INDUSTRY
Coors is one of the leading brewing companies founded by Adolph Coors in Colorado. Coors beer was a regional product throughout its history in the marketing area of west side of the USA. By mid 1970s, the Company was financially strong and successful with 16% return on its sales. However, this high performance decreased between the years 1977-1985, but the year 1985 was the most profitable year of the Copmany with revenue of $1 billion. The main strategy of the Coors was differentiation by producing a high quality beer among competitors. Producing its beers with Rocky mountain spring water, the taste of the Coors beer was more fresh. Although this could be considered as an endowment too, Coors used its brewery skills in pPasteurization, fermentation and filling to gain competitive advantage from its locations natural sources. Most of the competitors used pasteurization technology to make the shelf life of the beer longer and to lower their cost. However, Coors did not accept this technology to be focused on the freshness of its beer. In addition, most of the rivals used additives in fermantation process of the beer to make the aging period shorter, however Coors has chosen to use less additives and longer aging time (70 days in average compared to the rivals’ period of 20 days) to make the taste of its beer different from the others. As Coors had only one main product, the filling lines were enough to be faster than its competitors. Coors applied backward integration such as owning a land in Colorado with 60 springs on it, producing its own malt, buying a bottling supplier, producing its own packaging equipment and producing the required energy for its facilty as weel as forward integration like buying 5 wholesalers, refrigerated rail cars and trucks to have an efficient transportation. All these in-house production techniqes were other core competincies of the Coors which at the same time strenghtened the...
Please join StudyMode to read the full document