Analysis of Porter's Five Forces to Craft Brew Alliance • This analysis of the craft brew alliance shows that it can be an attractive industry to enter if planned and executed appropriately, improving strong relationships with distributors is vital to the success of a brewer. • Distributors can have automatically some amount of power in the industry who cover a regional area and typically have an exclusive arrangement with one major brewer like Craft Brew Alliance • And the relationship among a major brewer and a distributor is one of mutual dependence and without good • distributors brewers cannot access the consumer to the extent. • Developing brand image is concerns with advertising tactics • Rivalry in overall industry is high with various …show more content…
Porter’s Five Forces Supplier Power • There is an availability of numerous farmers supply the hops, barley, corn and rice used to produce beer. • The volume of ingredients purchased and the large number of farmers available to purchase the ingredients from switching to low cost suppliers. • And inability of the farmers to forward integrate and supplier power in considered low in regard to the major brewers • Craft brewers who purchase fewer ingredients and few times more specialized ingredients may cause supplier power for this segment of the industry to be somewhat higher. Power of Buyer • In Craft Brew Alliance Once produce their product, it is sold to wholesalers, who transport and store it • and sell it to restaurants, bars, liquor stores, grocery stores, convenience stores, and other • licensed outlets. • Brewers cannot sell directly to retailers or consumers they must use a wholesaler • So, while the consumer may have minimal control over price, the wholesaler does have some control in all segments of the