How Millercoors Creates Up Porter 's Five Forces

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The fourth force that makes up Porter’s Five Forces is the bargaining power of buyers. For MillerCoors specifically, the main buyers are distributors. The distributor controls the price by setting it on profit margins. In addition, distributors are consolidating and increasing in power. For example, in 1970 there were 5,000 distributors; today there are only 2,500 distributors. The distributors are also eliminating new competition. Two examples of this are how MillerCoors puts pressure on itself to carry its own brand and how there are more and more regulations on beer. Because of these reasons, there is more power to current distributors than there was in the past. The fifth and final force is the threat of new entry. One of the…show more content…
Some of the weaknesses that I could think of are that the company has one very large competitor that represents 50 percent of the market share instead of several semi-large competitors, so gaining the majority of the market share is a difficult task. The second weakness is that the beer brewing industry has slow industry growth, while the wine industry is growing much more rapidly. In terms of opportunities and threats, MillerCoors has several opportunities that it could capitalize on. The opportunities that stand out to me are the foreign market explosive growth, financial markets, innovation, and increasing the awareness of sustainability issues among consumers and employees. If MillerCoors took advantage of these opportunities, it would find great success in several different realms of the competitive market. As far as threats go, there are three main ones that face MillerCoors. The first one is the competition that the company faces, the second one is the overall falling beer consumption that is happening worldwide, and the third one is the growing popularity of microbreweries and craft beer. These threats can also be seen as opportunities, though, such as homing in on the creation of more microbreweries in its market to keep up with the growing popularity and developing

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