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Sam Adams Swot Analysis

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GlobalData - SWOT Analysis
October 13, 2013
The Boston Beer Company, Inc.
Suite 850, One Design Center Place
Boston, MA 02210
United States
* * * * * * * * * * SWOT ANALYSIS * * * * * * * * * *
Strengths:
Strong Brand Equity
Boston Beer gained brand equity as a result of its efforts to create robust brands over the years. The company offers beverages under various brand names such as Samuel Adams, Sam Adams Light, Twisted Tea, Angry Orchard, and
HardCore. The company markets more than 50 beer products under Samuel Adams and Sam Adams brands, 10 flavored malt beverage products under the Twisted Tea brand, a hard cider product under …show more content…

As a result, the election of a majority of the company's directors and all other matters for stockholder approval are decided by C. James Koch, chairman of the board of directors of Boston Beer. Mr. Koch is the current holder of 100% of the outstanding shares of the company's
Class B Common Stock. Consequently, he is able to exert a major influence over all matters requiring stockholder approval, which will restrict most of the company's accomplishments without Mr. Koch's support.
Decreasing Operational Efficiency
The company has displayed a poor financial performance reducing its investor's confidence. Though the company's revenue increased by 13.1% from $513m in 2011 to $580.22m in 2012, its operating income decreased by 7.8% from
$103.66m in 2011 to $95.58m in 2012. The company's operating margin decreased to 16.47% in 2012 as compared to
20.20% in 2011. The company's operating margin has declined 374 basis points (bps) over 2011 which may indicate that the company's cost management and pricing strategy is weakening. The decreasing operating profit margin indicates the company has been less efficient in its day-to-day operations. The company's EBITDA growth decreased to
(7.7%) in 2012 as compared to 27.6% in 2011. On the other hand, the company reported an increased operating cost as percentage of sales to 83.52% in 2012 from 79.79% in 2011. The declining operational efficiency of the company affects its financial and operational condition.

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