Boston Beer showed a promising growth as a company with a dozen reps in 1989 to a company going public in 1995, which was considered to have made a mark in the specialty brewing business. It successfully changed the consumer preferences from cheaper beers made by large breweries to expensive specialty brewers within its niche. With their variety of crafted beer, Boston Beer captured a niche market and proved itself a number of times by winning numerous competitions for its best taste. It placed itself correctly in the market and with rightly target advertising campaigns with captured its target audience, therefor following the 4 P’s rightly. With a portfolio so strong it was only fair for investors to see a potentially successful venture in Boston Beers. I think it wouldn’t fair of a company with such a small start and operations to show profit so fast but it did show a steady growth. So I think Jim Koc proved to be a great executive who made profits in spite of competition from major brewer’s in his niche market. Boston Beers had a Controlled growth approach where it controlled its expansions by not over extending its resources and took a more conservative approach. But later it took steps to change its strategy from using other micro breweries to owning its own breweries which made its profits go down but as with any growing company it slowly made its way up. Now although it looked like it couldn’t keep up with the initial stock price but its controlled growth approach helped it have good profit during the year 2007 and ultimately showed great profits (increase in stock price to $ 109 by 2010) to those investors who kept faith and stood along by building a financially strong company. Also on a different note most investors with diversified portfolios generally make sure to invest in companies only after they see a trend in its stock prices.
Retailers are often faced with beer going sour with the increasing time lag between production and...
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