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Boston Beer Company

614 Words3 Pages

Threats of New Entrants
The Boston beer company need to manage all challenges such as reducing costs, lower price strategy to safeguard its competitive market. If Boston beer bring new products in market by innovating then new customer can buy the product from Boston beer while old customers will also love to try new product. Boston beer need to focus to reduce the fixed cost per unit by building and practicing economics of scale.
Bargaining Power of suppliers
All most every brewers company buy their raw materials from many suppliers. Boston beer needs to build supply chain with multiple suppliers and need to develop dedicated suppliers whose business depends upon the firm. Third party manufacturing has less bargaining power of suppliers. …show more content…

Boston beer need to get a large amount of customer group that could lower the bargaining power of the buyers. Since customer wants with affordable and less price, if Boston beer quick innovate new products in the market, it could help the company to reduce the bargaining power of buyers.
Threats of Substitute Products or Services
Any industry faces hard time when new or similar product come to market in another way. For instance such as Google drive and Dropbox. Both storages hardware drives are replacement for each other. In order to get rid of threat of substitute products or services, Boston beer needs to understand what customer actually needs instead what is buying. In addition, Boston beer need to pay close attention to product oriented instead of paying attention to service oriented.
Revelry among the existing Competitors
The overall profitability will decrease if the rivalry among the existing competitors. Instead of competition with small market, The Boston beer have to collaborate with others competitors in order to develop the market size. In addition, building a sustainable differentiation and building scale can compete better too.
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