Adolph Coors in the Brewing Industry Essay

Coors was a huge success in the mid - 1970 's. How is the value chain structured at that time? What kind of general competitive advantage does this value chain bring? (Please concentrate your analysis on procurement, manufacturing, marketing, distribution functions)

I think Coors' competitive advantage is built by a differentiation strategy. This is basically a major factor of success. The special spring water in Colorado State ages beer for 70 days using natural pasteurisation rather than adding industry average 20. There are no other brands in more than two-thirds of the company's wholesalers, and the company's requested industry price is relatively high (the calculation is explained in the next section).

Considering the data of 1977, Coors produces premium beer and its beer price is relatively higher than industry average price, so we adopt a differentiation strategy. The company's revenue per barrel in 1977 was 48% higher than the industry average, cost 48% lower than industry average, but 29% higher than cost leader (Heileman)

In 1985, company sales per barrel of beer was 11% higher than industry average, cost was 11.20% higher than industry average. The company's cost is 36.85% higher than the cost leader's cost (Heileman). Significant cost increases are related to increases in advertising costs and other selling, general and administrative expenses, which increased by 145.13% between 1977 and 1985. On the other hand, the target cost in 1985 is not a slight increase of 21.86% in 1977, it is 27.1% higher than the industry average.

Overall, the company has adopted a differentiation strategy. In short, the overall cost is close to the industry average, and the company claims additional markup from the average industry price of its products.

Coors Brewing Company was founded in 1873 by Adolph Coors. The company has a long history, but one of the most important events is Coor's excellent service in 1985. That year, the overall sales report of the brewing industry showed that most companies did not benefit from the business. However, even at a difficult time, Coors Brewing can make up a sufficient share of the market in terms of sales. According to statistics, the company 's sales increased by 13% and sales reached 1 billion dollars. This is the highest amount the company has received through its business. Since that time, Coors Brewery has undergone various changes in management, marketing, production and distribution.

Molson Coors Brewing Company was born from the dream of Adolph Coors and John Molson. These two people differ in many ways, but they share a common passion for brewing. Their journey began and ended at different times and places, but they worked together towards the so-called Molson Coors Brewing Company. In 2005 their dreams were separated from the merger of Molson Inc. and Adolph Coors Company of Colorado for many years. In 2007, SabMiller and Molson Coors Brewing Company became a better competitor of Anheuser-Busch, established a joint venture and established MillerCoors.

Molson Coors Brewing Company was founded in February 2005 after Adolph Coors of Colorado State and Molson Brewing of Canada merged. Today, they are considered to be the best-selling and fastest growing premium ale in the United States. The company recently established a joint venture with SABMiller (Molson Coors) in the United States. Molson's current strategy is to focus on brand growth and product composition by increasing production, strategic pricing, and increasing market share. They also tried to extend their iconic brand "Rocky Cold Refreshment" to the new world market (Molson, 2009). In addition, due to the limited production capacity at the Colorado factory and the rise in transportation costs, Coors has plans to build a second brewery in Virginia or North Carolina (Ghemawat, 1987).