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Boston Beer Company

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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.
Corporate

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depends on distributors both for its supplies and for distribution of its products, care must be taken to develop good working relationship with all participants in the value chain. The law requires separation of beer producers, distributors, and retailers so there is no possibility of forward integration of the value chain, but the Boston Beer Co. can still provide additional value to its distributors through program like Freshest Beer Program, which saved participating distributors storage space worth of about two weeks of Boston Beer Co. inventory and the cost of energy used for storing the beer in cool temperatures. The fact that Boston Beer Co. is repeatedly voted one of the best breweries in the USA will assure customer interest and high inventory turnover. However, the Three -Tier System does not prevent backward integration and the Boston Beer Co. should research this possibility to ensure supply of high quality ingredients which are vital to produce high quality beer. Different types of hops (bittering or aroma hops) are added in different production stages and the final taste of the beer is the result of combination of different hop varieties, research could be done to find out which hop varieties are similar enough that they could be substituted during the production of beer without the change of taste.

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