Boston Beer

In: Business and Management

Submitted By baoyifeng
Words 430
Pages 2
YifengBao
Boston Beer Company
The Appendix 1 below presents the strategic group model of beer industry. In my perspective, Boston Beer Company fits the position with moderate high price and high percentage of alcohol volume. Since the strategic group model contains the variables of two competitive characteristics which are average price and percentage of alcohol by volume in the industry, the positions that companies locate in the model are suited to tackle competitive pressures. We could conclude that both of the prices and quality are key competitive elements in beer industry.
Boston Beer Company follows the combination strategy with low-cost and differentiation strategies. The case introduced that the company invested in efficiency initiatives to lower costs and increase margins during the its development. Facing the competitive environment in the craft brewery industry, the Boston Beer Company has promoted some specializations of their products, which are popular in the industry. The company brews over 50 beer flavors, for example, Samuel Adams Cherry Wheat beer is one of the most popular beers in the company. Also, the company promotes other alcoholic beverages that are with high popularity among consumers. In addition, the company pays much attention on the brand recognition. The Boston Beer Company has tried to expand the brand to other countries outside the United State and made their products be recognized nationwide. Furthermore, the fact that the Boston Beer Company created the high-quality craft beers with price premiums is another differentiation advantage. As the case stated that the group of subsidiary helps the company identify better ingredients and enhance the brewing methods, in which case the differentiation on the quality of products would not make the rivals easily imitate.
There is no doubt that one of the resources that may help the…...

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