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  • Adolph Coors in The Brewing Industry: Take-Aways

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    Adolph Coors' strategy in the 1970s focused on its product advantage over competitors rather than developing a competitive advantage. This internal focus and static view of rivals led to missed opportunities. In the 1980s, Coors took a more reactive approach with little adaptation in response to changes in the industry. However, after 1985 Coors began expanding its operations, entering new markets and updating its strategy and leadership. These strategic changes helped Coors significantly improve its financial performance relative to competitors and market indices over the following decades.

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    Adolph Coors' strategy in the 1970s focused on its product advantage over competitors rather than developing a competitive advantage. This internal focus and static view of rivals led to missed opportunities. In the 1980s, Coors took a more reactive approach with little adaptation in response to changes in the industry. However, after 1985 Coors began expanding its operations, entering new markets and updating its strategy and leadership. These strategic changes helped Coors significantly improve its financial performance relative to competitors and market indices over the following decades.

    Copyright:

    © All Rights Reserved
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    Markieren Sie unangemessene Inhalte
    45 Ansichten9 Seiten

    Adolph Coors in The Brewing Industry: Take-Aways

    Hochgeladen von

    ZA
    Adolph Coors' strategy in the 1970s focused on its product advantage over competitors rather than developing a competitive advantage. This internal focus and static view of rivals led to missed opportunities. In the 1980s, Coors took a more reactive approach with little adaptation in response to changes in the industry. However, after 1985 Coors began expanding its operations, entering new markets and updating its strategy and leadership. These strategic changes helped Coors significantly improve its financial performance relative to competitors and market indices over the following decades.

    Copyright:

    © All Rights Reserved
    Als PPT, PDF, TXT herunterladen oder online auf Scribd lesen
    Markieren Sie unangemessene Inhalte
    von 9

    Adolph Coors in the

    Brewing Industry
    Take-aways

    Internal Fit

    A strategy should fit internally

    Activities of the firm should link in a complementary way with


    one another
    This requires a cross-functional perspective
    An activity map is an important tool to assess the internal fit
    of a companys strategy

    An Activity Map
    Procurement

    Backward
    Integration

    Manufacturing

    Marketing

    Plant
    Scale

    One
    Product

    One
    Location

    Intermediate
    Price

    High
    Capacity
    Utilization

    Limited
    Advertising

    Distribution

    Regional
    Distribution

    Distribution
    Controls

    Cans
    Other inputs

    Other

    Unique Process
    Asset-Intensive
    Long
    Unpasteurized

    Product
    Attributes
    Rocky Mount.
    Image

    AllEquity
    Finance

    Family
    Control

    Confrontational
    Manag.

    External Fit

    A strategy must also fit externally

    A companys strategy needs to make sense in the terrain in


    which they are operating
    Comparative financial statement analysis is a key tool for
    this type of assessment

    Identify the key drivers of change in making comparisons

    Coors Strategy

    1970s: Product Advantage vs Competitive Advantage

    Scale and Centralization


    Missed opportunities
    Static view of rivals and opportunities

    1980s: Constrained by Earlier Choices

    Reactive strategy
    Little adaptation

    Coors Update
    1985 Miller introduces Genuine Draft August 1
    1986 Agreement with Asahi Breweries in Tokyoto
    brew and distribute Coors in Japan
    1987 Shenandoah packaging facility opened
    1987 Agreement with AFL-CIO ends 10-year boycott
    against Coors
    1988 Record volume moves Coors from #5 in the
    industry to #4
    1989 Introduced Keystone (a popular beer that
    cannibalized Coors premium sales)

    Coors Update
    1990 Coors rises to #3 among US brewers
    1991 Entered 50th state (Indiana) and began exporting
    to Puerto Rico, Guam and Cayman Islands
    1992 Spun off nonbrewing assets including diversified
    technology business
    1993 New president and COO hires from Frito-Lay;
    first non-Coors family member to be president
    1994 Purchased brewery in Spain
    1996 Anheuser Busch has captured 48% of US beer
    sales

    Coors Performance Post 1985


    Relative Performance of Coors and the S&P 500
    Relative Performance of Coors and the S&P 500
    (1985-Present)
    (1985-Present)

    S&P 500 + 581%

    Indexed Adjusted Closing Price


    Indexed Adjusted Closing Price
    (1/1/1985 = 100)
    (1/1/1985 = 100)

    1000
    1000

    Coors + 334%
    (end 2003)
    100
    100

    Coors + 52%
    (end 1995)

    10
    10
    Week Ending
    Week Ending

    10
    10

    1/2/85
    1/2/85
    7/2/85
    7/2/85
    1/2/86
    1/2/86
    7/2/86
    7/2/86
    1/2/87
    1/2/87
    7/2/87
    7/2/87
    1/2/88
    1/2/88
    7/2/88
    7/2/88
    1/2/89
    1/2/89
    7/2/89
    7/2/89
    1/2/90
    1/2/90
    7/2/90
    7/2/90
    1/2/91
    1/2/91
    7/2/91
    7/2/91
    1/2/92
    1/2/92
    7/2/92
    7/2/92
    1/2/93
    1/2/93
    7/2/93
    7/2/93
    1/2/94
    1/2/94
    7/2/94
    7/2/94
    1/2/95
    1/2/95
    7/2/95
    7/2/95
    1/2/96
    1/2/96
    7/2/96
    7/2/96
    1/2/97
    1/2/97
    7/2/97
    7/2/97
    1/2/98
    1/2/98
    7/2/98
    7/2/98
    1/2/99
    1/2/99
    7/2/99
    7/2/99
    1/2/00
    1/2/00
    7/2/00
    7/2/00
    1/2/01
    1/2/01
    7/2/01
    7/2/01
    1/2/02
    1/2/02
    7/2/02
    7/2/02
    1/2/03
    1/2/03
    7/2/03
    7/2/03
    1/2/04
    1/2/04

    Indexed Adjusted Closing Price


    Indexed Adjusted Closing Price
    (1/1/1985 = 100)
    (1/1/1985 = 100)

    Coors Performance Post 1985 relative to


    Anheuser Busch
    Relative Performance of Coors, Anheuser Busch, and the S&P 500
    Relative Performance of Coors, Anheuser Busch, and the S&P 500
    (1985-Present)
    (1985-Present)

    100000
    100000

    10000
    10000

    1000
    1000

    100
    100

    Week Ending
    Week Ending

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