Five Forces analysis of the craft brewing industry (any craft beer brewing comany please! I will give you a thumbs up)
Industry and Competitive Analysis Assignment
Objectives:
Develop knowledge of the industry/competitive environmental scanning as part of an organizationâ€TMs on-going situational analysis.
Know and apply the Five Forces Analysis Tool.
Evaluate an industryâ€TMs attractiveness.
Introduction:
Knowing and understanding the industry and competitive situation in which a firm is currently competing or wishes to enter, is a critical aspect of strategic management. Part of this analysis includes a description and analysis of theindustry. Questions (such as those immediately below) should be answered:
How large is the industry? Sales?
What exactly does this industry look like in respect to the number of competitors and their size/market share?
How concentrated or fragmented is the industry?
What is the industry structure?
Is this a global industry?
Are there strategic groups in this industry and what are they?
What, if any, distribution channels characterize this industry?
What are the Key Success Factors (i.e., what must a firm have to succeed in this industry?)?
The competitiveanalysis assesses the rivalry, risk from substitute products in an industry, bargaining power of buyers and how they can negotiate product features and price, bargaining power of suppliers and how they can create risk for the business through controlling the price of their products to you as a producer and therefore impact your cost of doing business, as well as the ability of new players to enter (or competitors to exit) the industry at will.
Assignment:
First, describe and analyze the industry (see bullet points above).
Next, complete a Five Forces analysis of the craft brewing industry (see the previously assigned case “Competition in the Craft Beer Industryâ€). You may have to do some online research about this industry, but there is a great deal of information about it online Recognize that this is a global market, but concentrate your analysis on the U.S. Market. Review the material in Chapter Three that explains Porterâ€TMs Five Forces Model and the Porter video may also help you. After you have developed your analysis of each of the forces, identify the strongest of the five forces and make a recommendation as to whether this is a good industry to enter and explain why it is or is not.
Directions:
Limit papers to no more than three pages. One page might be the graphic of your Five Forces analysis and the other two your recommendation and rationale.
IMPORTANT: Your assignment is to analyze the industry and competitive information and to evaluate in respect to whether this would be a good industry to enter.