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Coors’s Competitive advantage

 

Coors’s Competitive advantage

Coors’s Competitive advantage. Coors is one of the largest brewing companies in the United States and has maintained high production since its establishment almost two hundred and thirty years ago. The company specializes in producing high-quality brewed malt in the U.S. through various management strategies. Some of the critical aspects of production used by Coors are a quality water-source selection, stringent processing standards, and a well-strategized cold-filtering brewing approach. The high competitive advantage enjoyed by the company has enabled it to expand its distribution to new markets within the U.S. to gain a higher market share (Ghemawat, 1992; 1). The following discussion focuses on the key aspects that made the Coors brewing industry achieve a high competitive advantage and its strategies to invest in new markets.

Discussion

Coors’s Competitive advantage

            Adolph Coors founded Coors Brewing Company after realizing that Colorado offered a source of fresh water for the brewing industry. Most of the company’s managerial achievements have been credited to Adolph’s family. However, in the 21st century, the beer market changed drastically, calling for the company management to define newer methods of conducting production and marketing segmentation. The business evolved into a competitive industry that accommodated local and international competitors. Coors developed various production strategies that would enable his company to rank among the best beer producers in the U.S. by 1985 (Ghemawat, 1992; 2).

The main question arising from this situation was the ability of Coors to maintain his family culture while changing the company’s structure meets international standards. Another question was the ability of Coors to grow the company’s core products to compete effectively with other brands. Lastly, the company had to address its logistic distribution issues concerning product delivery from the processing firm to wholesalers and retailers across the country. Addressing these issues requires that the company shows a high-performance index.

Performance matters greatly in every organization since it indicates its value to other organizations in the same field. In Coors Brewing Company, the performance was improved by introducing new management rules that ensured all departments showed a high production level irrespective of the prevailing situations. The financial performance measure of an organization is determined by the profit-sharing plans and progressive people management strategies, which create positive effects. In addition, the company acquired an effective procurement process that ensured the cost of production was at the lowest possible value. The market structure adopted by an organization acted as an element of undertaking a need analysis of the market share. In this, the market structure had to segment the potential market of the organization’s products for practical analysis of the needs and formulation of measures that need adoption by the company (Ghemawat, 1992; 2-3).

On the other hand, the production played a significant role in attaining the competitive advantage of Coors Company. The management team at Coors recognized a need to expand their operations internationally by improving their products. The company opened new stores in major U.S. towns to enable customers to access its products. The company used a demographic marketing selection strategy whereby product branding was the primary marketing strategy. The market segment was developed to increase sales of products like canned beer. Coors Company used cost-effective production methods to achieve high-profit margins, making it more competitive among its rivals. The company aimed to produce more barrels to increase its economies of scale. The cost of brewing barrels differed with time, prompting the company to ensure the production of more than 100,000 barrels annually ((Ghemawat, 1992; 4).

The other aspect of production that enabled Coors Company to achieve a competitive advantage was the distribution of its products. The company used wholesalers and retailers, while other smaller companies made home deliveries. Coors is an established brewing company, and many consumers have gained trust in its products as opposed to the newly established companies. Coors’s innovation strategy was promoted by offering branded products nationwide at consumer-friendly prices in all stores. The retailing department, which consisted of merchandisers and store operators, ensured customers always received fresh drinks with different flavors. Wholesalers liaised more frequently with buyers to ensure that the purchased products achieved the targeted sales plan. This involves devising the necessary techniques by delivering the production plan to buyers, who, in turn, come up with decisions on the products to buy, brands, and the amount (Ghemawat, 1992).

Marketing was another factor that Coors management took into consideration to plan competitive strategies. The demand for beer in the U.S. kept increasing between 1980 and 1985 due to the increased population growth rate. The company had to devise effective marketing strategies because new beer brewing companies kept on emerging that offered distinctive products to potential consumers. To improve marketing, the company ventured into a brand name creation of its beers. The company extensively promoted its products in line with the brand name change. This called for the company to venture into as many places as possible to create customer awareness of its branded beers. Advertising methods such as media campaigns and offering additional promotions to the customers brought high profits for the company (Ghemawat, 1992).

Coors’s brewing division

            Coors always stressed quality brewing and could not entertain any behavior that provoked the rights of consumers. He upheld effective corporate social responsibility and ethics in his business, which made him receive many customers. Moreover, the company cared for various farmers who provided raw materials (barley) for beer production. In his constitution, Coors developed policies that ensured the rights of persons were respected. The following policies are aimed at achieving the following organizational objectives:

  • Perfect management regulations through proper distribution of rights and responsibilities among the company staff, managers, stakeholders, customers, and the society
  • Creating a solid company cultural structure and protecting it to hold the business integrity and provide responsible practices, and
  • To encourage employees to make efficient use of the available resources and use them to attain a competitive advantage.

In addition, the company developed rules and regulations guiding the use of beer in clubs and at home to promote responsible drinking (Ghemawat, 1992; 5).

Conclusion

Organizations undergo various challenges as they develop the necessary strategies to manage the current business operations in terms of competitiveness and positioning. Managers should be capable of integrating best organizational behavior practices in their regular business operations to achieve their specific organizational objectives. In every organization, people provide leadership, stewardship, and follower-ship. People learn innovations and ideas that assist them in transforming their organizations to greater levels hence achieving a more significant competitive advantage. Coors Brewing Company’s strategic approach enabled it to maintain its lead in beer production in the U.S. between 1980 and 1985.

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference

Ghemawat, P. (1992). “Adolph Coors in the Brewing Industry”,” Harvard Business School. 9-

388-014

 

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