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Business
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| Number of pages / Number of words: |
3 / 768 |
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As a result, the new entrants are mainly microbrewers which are focusing on a new type of demand.
Production Inputs
Big or small, companies in the beer market are competing for the same resources and are affected by the prices’ fluctuations of their inputs. In the beer market, some of the key inputs to consider in any economic analysis are grains, hops and yeast...
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In the beer market, some of the key inputs to consider in any economic analysis are grains, hops and yeast.
Strategy to succeed:
? Market Leadership
? Expanded market share (internationally)
? Price Increase
? Production efficiencies
? Recent differentiation – Premium Price i.e. Anheuser-Busch – Michelob Ultra for “Atkins†taste
Industry niche markets - Smaller micro brews
? Highly fragmented but growing
? Only growing market segment in the domestic beer industry
? Target small consumer market segments with high price inelasticity
? Rely on regional brewers for production to avoid high entry costs
? Market Trends:
< Consolidation of National Brewers:
< Flat Consumption trends
< Regulatory Burdens
< High Taxation
< Greater alcohol awareness
< Slow population growth
< Aging population
< Expansion of Specialty Brewers:
< Uniqueness and high price points
< High demand in category
< Constant high prices to attract sophisticated drinker
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? Although the barriers to entry are classified by S&P as relatively minimal, it is still extremely difficult for firms to remain profitable once they enter...
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General points of the essay
(CASES STUDY Odoul's) What Beer Drinkers Drink When They're Not Drinking Beer
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CHIEF ECONOMIC TRAITS OF THE BEER INDUSTRY
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LIGHT BEER vs. FULL FLAVOR BEER
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