Tuesday, January 28, 2020

Boston beer case Essay Example for Free

Boston beer case Essay Boston Beer Company’s main growth strategy was focused by differentiation. The sources of its competitive advantage can be classified as a company that provides high quality beer with unique flavors, a market driven approach, and a very efficient contract brewing strategy. Unfortunately, by the 1990’s, their initial public offering of $30 went as low as to $8 per share. Since the easy of entry into the microbrewery business is low, that resulted in about 3000 new microbrewers into the market. When there became too many options available for the consumer, Jim Koch should have approached the situation and avoided the risks of the company’s shares from falling, right when they saw stocks going down. He could have also approached having a more aggressive growth approach when the company went IPO. They could have avoided the company from becoming part of the niche market, which is still the case today. If he would have been a little more aggressive when they went IPO, they could have invested money into a brewery where they can meet their demands, not over exuberate the expansion. Also, they could have invested in finding the right marketing campaign like using celebrities or just advertising the beer to capture consumer’s attention. They really needed to create a type of quote or motto people would remember, just like Dos Equis and Coors light. Boston Beer Company has failed to that and for that reason their growth is still at a steady pace where is still not part of the big dogs yet. Since they focus so much on differentiation as their strategy, why couldn’t they capture consumer’s attention quicker and faster? In the 1990’s, Jim Koch should have changed his company from getting into a niche market into a general market, so that today he still does not need to prove or go bar to bar, to ask them to carry their beer. It should be a first option when someone is opening a bar to have Samuel Adams beer because the consumers love it. He failed to do so by not taking advantage in the 1990s and he will still have to do the same beer pitch to bars, because of his mistake.

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