1. Identify the key environmental changes in the beer industry. Which have most
ID: 1220178 • Letter: 1
Question
1. Identify the key environmental changes in the beer industry. Which have most aided the growth in the US craft beer market? 2a. How attractive is the US beer market? Use Porter’s five forces to assess the market attractiveness. 2b. Does the craft beer segment vary in terms of the five forces’ impact on industry attractiveness? 3a. What is your assessment of LBC’s performance relative to its peers? What does a strategic group map of the brewing industry reveal? 3b. What recommendations would you make concerning expansion and the construction of the new brewery? 3c. How might Magee ensure consistency of the Lagunitas brand across multiple breweries? 4. What are the risks that Magee faces in expanding the brand away from a craft orientation toward ‘playing against the largest breweries’ on a national scale?
Explanation / Answer
Climate changes are severely impacted the beer industry , claifornia to vermont have witnessed massive draughts due to which water availability for production is getting hampered.Such conditions are preventing adequate supply for the producers , the hard water is poor in quality for the brewers to handle.Hence , sustainability is very important which is lacking currently .Further it has become to protect and support farming for procurement of raw materials like hops , barley ,wheat and focus towards climate shift.The Us beer market has been relatively attractive compared to its global players ,the Us market CAGR is expected to show a 0.7% growth till 2018 with almost $ 80 bn worth.The strategies show growth towards craft and brewery sections .The brewery section is soearing and new demands is always coming , the customers are vast with new taste developing for flavoured beers and ciders . The coming industry needs to cater towards the changing taste and demand to create a standing in this industry.
Therefore,construction and setting up new business needs to focus on new segments of brewery market maintainence of brand is important but it takess timee to establish and foster.The risk involved are competition, branding , pricing because it will not be easy to compete with already established major pplayers who have a name in the industry.Further , there needs to be full focus on branding , product innovation ,R&D, pricing to have a difference in the brewery market.
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