Mountain Man Brewery

1697 Words Jan 18th, 2011 7 Pages
Situation
Analysis

A) Internal
environment
 General
characteristics:
  Mountain
Man
Lager
is
a
family
owned
brewing
company,
and
is
known
as
West

Virginia’s
beer.


Change
of
CEO,
as
the
founder
and
president
Oscar
Prangel
retires,
leaving
the
company
 to his
son
Chris
Prangel.


Due
to
changes
in
beer
drinker’s
preferences,
the
company
is
experiencing
a
decline
in
 sales for
the
first
time
in
the
company’s
history.


Mountain
Man’s
2005
revenues
are
down
by
2%
relative
to
the
prior
year,
while
 premium beers
are
declining
annually
by
4%.


Because
of
its
popularity
in
the
East
Central
region,
it
has
held
the
top
market
position
 in West
Virginia
and
Illinois
for
50
years.
 Mountain
Man’s
current
marketing
goals:


Maintain
…show more content…
C) External
environment

Competition

The
competition
in
the
U.S.
beer
market
is
divided
into
four
categories:


Major
domestic
producers

Mountain
Man
Lager’s
major
competitors
are
Anheuser
Busch,
Miller
Brewing
Company,
and

Coors
Company,
which
accounted
for
74%
of
beer
shipments
in
Mountain
Man’s
region
in
2005.

These
companies
have
an
advantage
over
Mountain
Man
because
they
maintain
economies
of
 scale in
brewing,
transportation,
and
marketing.
They
are
larger,
distribute
nationally,
and
are
 significantly more
financially
capable
than
Mountain
Man.


Second‐tier
domestic
producers

Medium‐sized
competitors
such
as,
Pabst
Brewing
Company
and
Genessee
distribute
nationally,
 whereas, smaller
companies
distribute
regionally.
These
producers
accounted
for
12.5%
of
beer
 shipments in
the
East
Central
region
in
2005.


Import
beer
companies

Import
beer
companies
such
as,
Heineken,
Molson,
and
Corona
serve
the
needs
of
sophisticated
 beer drinkers.
Compared
to
domestic
producers,
the
major
disadvantages
of
import
beer
 companies are
higher
shipping
costs,
weaker
distribution
networks,
limited
control,
and
 reduced profit
margins.
In
2005,
import
companies
controlled
about
12%
of
the
region’s
 market. 
The
craft
beer
industry

The
craft
beer
industry
is
divided
into
four
markets:
brewpubs,
microbreweries,
contract
 breweries, and
regional
craft
breweries.
They
are
all
independently
owned
and
produce

More about Mountain Man Brewery