business strategy

Topics: Alcoholic beverage, Revenue, Beer Pages: 5 (1503 words) Published: March 14, 2014
Subject: Business Strategy written case study
Student Name: Yani Li
Topic: Q7, Constellation is one of Foster’s major competitors in the world alcoholic beverages market, what do you see as the relative strengths and weaknesses of these 2 major competitors?

Introduction:
Strength and weakness are the two major components which attached to the internal environment analysis, internal analysis are relate to competencies, capability and resources within the organization. In this essay I will demonstrate the two firms’ strengths and weakness, by explores the quality and quantity of the capability and resources available to the organizations (Hill et al 2006, p7). Foster’s Group Ltd is one of the leading companies within the alcoholic beverage industry, it is the provider of premium wine, beer, cider, and spirits and non-alcoholic beverage; overall with more than 200 premium brands sales across the globes including Australia, Asia Pacific, America, Europe, Africa and Middle East. Fosters have supplies over 38,000 customers and 150 countries (Fosters’ official website, 2009). The most importance thing is Foster’s Company have announced to become the world’s leading premium alcoholic beverage company and the Australia’s leading beverage business by taken over the South Corp Company in 2005( Fosters’ official website, 2009). Foster’s Company has numerous strengths offer the company a competitive edge over other competitors, and this essay will also demonstrate the weakness of Fosters while in comparison to the strength and weakness of another leading company name as Constellation brands. Constellation brands is another leading brands within the alcoholic beverage industry, it operates in the US, Canada, UK, Australia and NZ, it has a portfolio of 200 brands across the imported beer, wine and spirits products (Constellation brand’s official website, 2009).

Section 1: The strength of the Foster’s brand
Fosters Company has a strong group of passionate, innovative, high-performance workforce, which will build a good future for the Fosters Company, and committing to help strengthen the Fosters in the market. Moreover the Fosters Company have created an inspiring workplace to attract and retain highly skilled talent people, also they are focusing on the diversity of workforce which means hiring peoples from different experience, backgrounds and regions. It aims to enhance their innovative concept and produce high quality products as a result drive more sales (Fosters’ official website, 2009). Fosters always focus on developing its people, as the people of the company are deeming to be one of the most important assets and the foundations of the company. Forster believes in developing its people will driving Fosters to quickly achieve its business goals and the profit growth.

Fosters is has a strong brand name within the market which is one of their significant strength. For instance, in Australia Fosters sells 7 of the top 10 best selling beers (Fosters official website, 2009). Some brands within the Fosters has exported their products to the key market such as Japan, China, and India, that leaded the Fosters to grow quickly to becomes a leading alcoholic company in these countries. This is an important strength because gain the market share in these countries means to gain wider customers bases support will help to increase the sales. The Chief Executive Officer of the Fosters was interviewed about the Fosters product, and he said: “it is still a star performer, smooth, it has always been a great beer, in blind tasting (Treror O’ Hoy, 2006). The Yellow Label sparkling wine has gained listing in Major retailers of UK and has become famous among consumers (Fosters official website, 2009).

The Fosters have got a strong financial performance in the beer market, the most famous brands from the Fosters is well known by the public is VB beer, it has the large markets in Australia and has broad customer bases to support the VB’s...

Bibliography: Annual Report –Fosters, 2009 (Online)
http://fosters.ice4.interactiveinvestor.com.au/Fosters0901/Annual%20Report%202009/EN/body.aspx?z=1&p=-1&v=2&uid= (Accessed: 11 May 2010)
Annual Report- Constellations, 2009 (Online)
www.cbrands.com (Accessed: 11 May 2010)
Fosters’ Profile, 2009 (Online)
http://www.fosters.com.au/about/profile.htm (Accessed: 11 May 2010)
Foster’s Group Overview, 2009 (Online)
http://www.fosters.com.au/about/profile.htm (Accessed: 11 May 2010)
Jonathan, S. 11 June, 2008. Foster’s strong beer performance is overshadowed by wine weakness
www.telegraph.co.uk (Accessed: 11 May 2010)
Reuters. 16 Feb, 2010. Foster’s posts weakest first-half profit in 4 years www.nytimes.com/2010/02/17/business/global/17iht-fosters.html (Accessed: 11 May 2010)
Reuters
www.nytimes.com/2009/07/02/business/02 drink.html (Accessed: 11 May 2010)
Treror, O
www.australianbeers.com/beers/interviw/ohoy/ohoy.html (Accessed: 11 May 2010)
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