Coors Case

14908 Words Dec 20th, 2010 60 Pages
Case 4.0 Adolph Coors -------------------------------------------------
Index 2
Introduction 3
Background 3
Porter’s 5 forces analysis 5
Generic Strategy 23
Current Strategy 24
Cluster Analysis 24
The value chain for Adolph Coors Brewery 26 Balanced Scorecrad 31 Hill & Slack models 32 The Wheel of Consistency explanation 39 Core competencies 40 Strategy 41


In this case an analysis of the Adolph Coors Brewery will be made, to see what the competition is like within the industry, what are the company’s strengths compared to their competitors. What are their weaknesses and
…show more content…
So the brewing industry stayed in a fast growth stage in 1960 to 1980. After the fast development, the demand grew less than 1% between 1980 and 1985. With the large advertisement investment (about 10% of sales) and more choices, the beer industry had owned a fix drinking market share. For these, the brewing industry had already established a strong foothold which meant they already reached the maturity stage.

In the plc diagram above, the beer brands Coors Light and Coors Banquet is shown in relation to their respective stages of their lifecycles. Coors light is the newest beer of the two and is in the beginning of the growth face. Coors Banquet is more towards the beginning of the mature face, since it’s their oldest brand and it is not growing that much anymore.

Porter’s 5 forces analysis
Industry Competitors – Rivalry among Existing Firms
High fixed costs
- Raw materials cost major breweries over half of their net revenues.
- Large volumes results in high storage costs. Beer storage is also difficult.
Slow industry growth
- The industry grow is staggered (less than 1%). This will result in a market share competition that will benefit the companies who have the means to survive, e.g. the means to lower their costs.
Numerous or equally balanced competitors
- Equally balanced competitors’ posses the financial power to wage a financial price war. The competitors are able to guard their interests and are

More about Coors Case

Open Document