South Delaware Coors Inc.
Case Study Analysis
Larry Brownlow is a full time MBA student who will be graduating soon. Larry decided to pursue his MBA because he wants to be a business owner and has a trust worth $500,000 that will soon be available to him. Larry has recently come across an opportunity to apply for a Coors beer distributorship. Before Larry applies for the distributorship he must first figure out if this is a good business decision. Due to Larry being a full time student he does not have the time to research this opportunity himself. Larry has $15,000 to use for feasibility research and has commissioned Manson and Associates to do the research. Manson ...view middle of the document...
Another legal issue that will come with this line of business is the sale of alcohol to minors. It will be difficulty to control because this problem exists on the retail level.
Summary of environmental opportunities and threats
South Delaware is currently an untouched state for beer distribution. The success of this business venture would rely highly on the two wholesalers in the area. Coors requires the installation and use of aluminum can recycling equipment. This promotes positive environmental issues and may prompt sales to those who are environmentally conscious. It also creates additional expenses for the distribution center.
Implications for strategy development
Using research data of current consumers from adjacent areas will be of great value in determining target markets. Since Coors is viewed as being insensitive to minority groups, it may be an initial challenge to break through these markets.
Classification and definition of industry
Coors brewery is one of the top four of the country’s leading sellers of beer. Their devotion to the quality of their product aids in making them one of the industries leaders.
Analysis of existing competitors
Competitors of Coors include existing beer and alcohol manufacturers in the country as well as foreign countries. In order to make a sound informed decision, research will be needed on current consumer preference of competitors as well as perceived future preference of the targeted area. This research is essential in determining the forecast of a market for Coors in the area.
Analysis of potential new entrants
It would be wise to consider that in the future there will be new competitors entering the market in the South Delaware area; however with Coors strong branding and customer based new competitors will not be able to match the proven product.
Analysis of substitute products
There are a great number of substitute products available in the market. These include other beer products as well as wine, hard liquor, wine coolers, and other carbonated/malt alcohol products. Research on the popularity of these other products in the targeted area is vital in determining the demand for Coors beer products.
Analysis of suppliers
Larry’s distributorship will have to obtain its products from the Coors brewery. The product cannot be obtained elsewhere.
Analysis of buyers
A strong relationship will have to be built with the areas retailors in order to secure space on the shelves for Coors products. The South Delaware areas estimated liquor and beer license information is important in determining the number of retailors able to carry and sell the product.
Summary of industry opportunity and threats
Larry has the opportunity of opening one of two beer distribution centers in an area that has been untouched by this industry. Larry must be willing and able to compete with other brands, which could be preferred over Coors. Research on past and current industry preferences will...