Coors As A Successful Commodity

Green Mountain Coffee Roaster’s Keurig Single Brew system is dominating the U.S. market with an overwhelming market share. Analysts expect sales of single-cup brewing systems to continue to grow in the U.S. and competitors are eyeing a piece of the pie. An analysis of Keurig’s current position, based on Michael E. Porters 5-Forces, highlights a number of key areas of opportunity and risk for the company. Handled correctly, the Keurig product line should continue its growth, however, a number of significant pitfalls threaten its dominance.

Thesis: While Starbucks has been an industry leader in the specialty coffee market, rapid overexpansion and current economic conditions have caused it to lose its market dominance. Is the company strong enough to recover?

The purpose of this research paper is to analyze Sam Adams and the global craft beer market. I will apply microeconomic models to analyze the supply and demand conditions for Sam Adams, its price elasticity of demand for products, cost of production and the overall market. There will be recommendations to maximize future profits and sustain success for Sam Adams. In this paper I will also analyze the craft beer industry and recommend actions for better management of supply and demand, improving the cost of production and the different barriers of entry that Sam Adams can utilize to impact its future in the craft beer industry. Applying the concepts of variable and fixed costs, I will make recommendations for its output decisions and profitability that will help them succeed in a monopolistically competitive market structure. In the conclusion of this paper I will make recommendations to manage future production and sustain its success, as well as evaluate the business structure and effective decision-making strategies. The craft beer industry is a monopolistic competition because it has the ability to allow many firms to produce similar good or services, but it at the same time allows each firm to make independent production decisions and differentiate their product from the competition by creating its own pricing.

Throughout most of its history, the Coors Brewing Company (Coors) has been a regionalized brewer within the United States, specializing in high-quality beer through by virtue of its source water selection, stringent production standards, and cold filtered brewing approach. As the company expanded its distribution to new markets within the U.S. in attempt to gain market share, it made a strategic decision to maintain a majority of its brewing operations at its primary production facility in Golden, Colorado. This decision was based upon the desire to preserve its core production strengths through close family control. However, as the company desires to expand its market presence beyond the

The situation facing Mr. Larry Brownlow is a tough one. He is young with minimal money to work with. This shows that he must be careful and research all of his investing activities closely. The problem that faces him is deciding if opening a Coors Beer brewery in his area of Delaware is a profitable investment. The beer is obviously not widely carried in the area so that makes the situation that much harder. He has less information to work with. This is why he contacted the Manson Research Firm. That presents the second problem. The firm will do the research to help do a feasibility analysis, but the information is not cheap. Larry is working with about two weeks until the deadline to submit an application for distributorship. He

In 1873, Adolph Coors built a small brewery called Coors in Golden, Colorado. Now, as of 2014, this small brewery has become the largest single brewery facility in the world. Over the years, the company has expanded their market and has become the third largest brewer in the United States.

Estimates of fixed costs are reasonably straightforward and are given in the case (p.280), a total of $250,000 ($160,000+$90,000).

Mr. Larry Brownlow needs to decide whether or not to apply for the Coors distributorship in southern Delaware.

The Boston Beer Company, Inc., founded in 1984, is a leading brewer in United States, offering wide variety of high quality full-flavored, handcraftedbeers. It is distinctive due to the time-honored recipe of brewing and authentic, consistent quality of alcoholic beverages. Samuel Adams Boston Lager is the pride of BBC, regular handcrafted beer “stands for quality, inner self-worth, authenticity, and unique New England or Yankee toughness” ( Martin Roper, Chief Operating Officer). Unfortunately, the company experienced the failure of conquering light beer segment

Several attempts have been made by Boston Beer Company to continue on a growth streak but not all attempts have been successful. The main goals for Boston Beer Company are to increase revenue and continue growing in the industry. Boston Beer Company has had trouble growing as barriers of entry are low and competition is high. Even though the market has seen a slight upturn, however Boston Beer’s founder Jim Koch elaborates on the company’s dissatisfaction, “We are disappointed with our depletion trends in 2016, which have remained weak so far in 2017. These trends are affected by the general softening of the craft-beer category and cider category and a more challenging retail environment with a lot of new options for our drinkers”. (https://www.fool.com/investing/2017/02/22/boston-beer-finds-growth-the-hard-way.aspx)

Molson Coors is a thriving international brewing company that has nine Signature Brew drinks and 123 Special Brew drinks that ranges from non-alcoholic to alcoholic (Molson Coors Brewing Company, 2016b). They have multiple markets around the world which contributes to the success of the company in the brewing industry. This report analyzes Molson Coors’ internal and external environments which determines their position in the brewing industry. It also discusses strategies the company uses in order to be successful in their industry. Molson Coors shares the industry with its main competitors but has its own uniqueness that makes its business stand out. Molson Coors is a successful business that presents opportunities for economic growth.

The Coors brewing industry had many ups and downs throughout its history dating back to its start in 1873 (Adolf Coors in the Brewing Industry). There were times of great growth and expansion that would get interrupted by numerous setbacks. Some were small and some led to extreme changes. It sounds similar to any type of business. However, the different generations of the Coors family seemed to find ways to usually compete with their competitors and maintain the success of the company. It was also very challenging. Different changes had to be made for each new obstacle that came their way. Over a century has gone by since its start in Golden, Colorado, and the business seems to still be available in stores around the world (Adolf Coors in the Brewing Industry).

This paper focuses on a company analysis of Molson Coors Brewing Company. The second part of the project will give a better understanding of the company by analyzing their stock price, total cost of

GMCR is using a differentiation strategy by offering a different way for the consumer to enjoy specialized coffees, teas, hot chocolate, and other hot beverages in their own homes, workplaces, and hotels at an overall lower cost than coffee houses. They are able to do this by taking the lead in the market due to their strengths in product development, licensing agreements with partners, and on-going successful acquisitions. GMCR growth through their acquisition strategy and their licensing agreements have been the biggest contributors to their growth. In 1998 when Keurig launched its first single- cup brewer for the office environment GMCR was there to partner with. (Dess,G, Lumpkin, G. & Eisner, A.(2012). Strategic Management (6e). Boston: McGraw-Hill Irwin.) From that point on it just continued whether it be the agreement with Starbucks in 2011 or the agreement with Dunkin Donuts in that same year to sell K-cup’s with both Starbucks and Dunkin Donuts coffee they continue to thrive in the market. If we look at Porter’s generic strategies that our text talks of we can identify the following.

Coors 啤酒公司的平衡记分卡：十年经验 作者：Hugh Grove，University of Denver；Tom Cook, University of Denver; Ken Richter, Coors Brewing Company 前言 1997 年底前， Coors 完成了它历时三年的计划项目“电脑联结后勤 （ Computer Integrated Logistics, CIL） ”， 以改进其供应链管理。 Coors 把所有有关其从供应商的供应者的产品， 到递送到其顾客的顾客的所有的 作业，都概括称为一条“供应链”。（因为根据联邦法律，Coors 不能直接向顾客出售其产品。Coors 的 顾客是经销商，经销商的顾客是零售商，而零售商的顾客才是消费者。）Coors 的供应链包括了下述流 程：采购、研究与开发、工艺、酿造、调理、发酵、包装、仓储、后勤和运输。 CIL项目是一个跨越若干职能的创举，目的在于再造Coors的后勤或供应链的管理流程。此一再造项 目改进了供应链的流程，并应用信息技术，向参与供应链管理的人员提供及时、正确的信息。此项目 之目的是，通过减少周转时间、降低营业成本、提高顾客（经销商）的满意程度，以增加公司盈利。 为这个项目提供软件的，是德国的 SAP(Systems Applications & Products)公司。该公司提供财务和材 料计划的软件模块。Coors 采用 SAP 出品的用于编制运载计划的软件，该软件用来预计经销商的需求、 编制生产进度计划和编制下周的发运进度计划。CIL 项目纠正了供应链中的下列几个主要问题： 1. 满足了季节性的需求， 2. 满足了因促销活动而引起的骤然增加的需求， 3.