Use Five forces analysis and just use Threat of substitutes to describe more details about beer company/craft breweries, not one signal Beer brand.
Five Forces Analysis
The bargaining power of buyers in the beverage industry is high due to the availability of different substitutes. For Instance, Molson Coors is a top brewer in the region with more than 30 products. To face higher bargaining power the firm has increased the product line. Customers perceive the quality, taste, and price of the drink and make buying decisions. The bargaining power of the supplier is also high. The high bargaining power of suppliers is due to intense competition. Suppliers have different options to supply water and ingredients. The threat of substitutes is also high. Differentiation is a key success factor for these companies to enhance the visibility of attraction and positioning. The threat of new arrivals is moderate because it looks tough for a new company to enter this industry due to different entry barriers such as product differentiation and business regulation. However, new arrivals are quite capable of building their brands. The competitive rivalry is high because many firms have established business successfully. With a wider customer base, these firms have sustained the business (Stoller).
Threat of Substitutes
Millar Coolers contains Blue Moon and Pilsener Urquell. These are top substitutes, which are the threat to top products of Boston. For Instance, these are huge threats to Boston’s brands such as Samuel Adams Bohemian Pilsner, Samuel Adams Boston Ale, and Samuel Adams Boston Lager. Similarly, Craft breweries have dominated due to their wide product line in the competing market. These products are competitive and the threat of each company in the market. The best way to survive with these particular products is to enhance the differentiation regarding pricing, packaging, and design. Also, the quality of these substitutions is not to be compromised (Roach).
A discussion of the criteria you are using to rank your firms and why they are relevant within the context of this industry.
Criteria of Firm Ranking
Millar Cooler has been ranked 2nd in the beverage industry. On the other hand, Boston and Craft Brew are ranked 9th and 12th. Comparatively, these two firms are under the Miller Cooler due to the limited product line. For Instance, Miller cooler ranked 2nd contains a wide product range in the market. One of the prominent reasons to rank this firm is the broad product range. Craft Brew has done well in quality, differentiation, product development, and marketing. However, the above firms have developed key quality measures to build the brand and make the difference in the competitive market. Another key factor affecting the ranking of these companies is profitability and revenue streams. Miller cooler has performed well due to increased sales growth. Craft brew has declined in regard to revenue and sales recently. Thus, sales, marketing, revenues, quality, product line, price, and differentiation are some key factors to evaluate the company and rank accordingly (Technavio.com).
Industry Relevancy
This criterion is quite relevant in the industry context. The industry has evolved with time, and it is imperative for these firms to integrate with new industry trends. These trends are regarding quality, differentiation, pricing, and taste and product line. Therefore, it is quite pertinent to the industry. Interestingly, the evaluation of the beverage company is also to be done by navigating sales, and revenues. To improve the ranking, these firms are intending to identify customer needs, perceptions and demands in the market. The management has made several segments of customers to develop the product line and increase sales. Customer ‘s response in the beverage industry seems meaningful, and appropriate strategies help to improve ranking. In the beverage industry, it is important for any firm to identify measures to improve performance and emerge to grab the large customer base. Improving the ranking is tricky, but it is possible by using this criterion.
Work Cited
Roach, Dylan. “These 5 beer makers own more than half of the world’s beer.” Business Insider. Business Insider, 9 February 2016. Web. 26 October 2018. https://www.businessinsider.com/biggest-beer-companies-in-the-world-2016-1.
Stoller, Gary.”Craft Breweries Dominate The Top 50, But Guess Which Giants Rule The Beer Market.” Forbes. Forbes, 20 March 2018. Web. 26 October 2018. https://www.forbes.com/sites/garystoller/20
18/03/20/craft-breweries-dominate-the-top-50-but-guess-which-giants-rule-the-beer-market/#76a79e9edcad.
Technavio.com. “Top 10 Largest Beer Companies and Their Beer Brands in the Global Beer Market 2018.” Tech Navio. Tech Vavio, 13 June 2018. Web. 26 October 2018. https://www.technavio.com/blog/top-companies-global-beer-market.
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