Coopers Business Case Essay

1. IntroductionCoopers Brewery has had a successful journey from its humble beginnings to it deuce-ace tier note in duopolistic competing commercialise. Coopers has not existed without its shargon of disturbances and risk of been taken over by a whoppingr global player, however Coopers managed to defend itself. Coopers has positioned itself in a soaringly competitive market with a differentiated brand and produce that has captured a niche market. Coopers has also successfully integrated a high value chain which in turn captures the essence of Coopers at the same time delivering value at multiple stages. In order for Coopers to stay competitive in the proximo, Coopers differentiation system go off translate into newborn emerging markets and ever-changing customer tastes for beer and deliver beer to new niche market ingredient.2. Company BackgroundEstablished in 1862 by Thomas Cooper, Coopers is a 5th generation family possess business that manufactures and sells beer, home brew and malted milk extract. In 1997, the business purchased a $40 million express of the art manufacturing, bottling and distribution plant in Regency Park South Australia. With advanced robotics and a commitment to an eco amiable plant and processes to reduce their carbon footprint, Coopers has never lost sight of their complaint.Mission StatementCoopers mission logical argument for its beer as stated in the case choose was toprovide natural beverages and food ingredients which satisfy tastes and nutritionary needs, and create enjoyment (Hubbard 2008, pg7)3. Company Analysis door guards five ForcesTo assess the competitive landscape and to understand where Coopers Brewery is positioned a number of assessment models or framework do-nothing be used. To assess Coopers Brewery current competitive position Porters five forces model (see Appendix 2) can be used to analyse its current state. a) Threat of the new entrants is Low. There are two types of operations i. one is the cheat-brewing , also known as miro-brewing, market and the opposite ii. Large scale production.Entry in the Craft-brewing is nearlywhat increasing, however larger scale production requires large capital outlay and continuous investment whilst been maintained by significant cash flow (Kaczanowska 2010). In conduceition incumbent beer producers are known to the consumers due the history and the accumulated advertising of the brand. This high approach for brand awareness creates a barrier for new players (Kaczanowska 2010). Imported products are present although the threat to the Australian market appears low. b) Threat of substitute products This can be described as medium for the beer industry. There are always beer substitutes such as fuddle-colored, ready to drink mixers and soft drinks to name a few. Increasingly health-conscious and familiar consumers are looking at higher caliber products (Kaczanowska 2010).This can be reflected in the trend toward craft and premium beer s. c) Bargaining power of buyers is Medium Brand loyalty is strong among beer consumers as appose to wine consumers (Richardson 2012). Richardson (2012, pg 24) summed this up as Wine consumers are driven by choice preferably than loyalty and wine brands are easily substituted, but beer is a branded product and consumers drink the label. hitherto consumers are value sensitive and may switch to another brand if the situation is presented. d) Bargaining power of the suppliers Medium edged Material is the largest cost to breweries. IBISWorld estimate approximately 58.3% of industry revenue (Kaczanowska 2010), these raw materials include, cardboard boxes, glass, aluminium, packaging. Other blunt materials would include sugar, malt, hops, wheat, rice, water, barley all of which are critical ingredients forbrewing. All of which have a supply risk, which in turn can have a direct impact on the cost of the supplies good. Coopers have initiated some efforts to reduce some of these risks such asi. Water supply to the operations is from a deep aquifer,ii. source supplied by a Gas co-generated turbineiii. Chemical and Preservative free peopleiv. Waste minimisatione) Rivalry among brisk organisation is medium but increasing. There are three main players in the Australian beer market, cheers and Lion Nathan with Coopers being in third place, by market share (see Appendix 1). parents and Lion Nathan are both Global conglomerates with Coopers being the Family owned Australian brewer. It could be say that Coopers is the David to the two goliaths being Fosters and Lion Nathan (Byrom and Lehman 2009). i. Price-based contender Pricing does have a recess to play in rivalry, however price wars in not evident in this segment. ii. Non-priced based rivalry The beer industry sits primarily in this space, where each company focuss efforts in branding, packaging and quality to target their demographic. iii. Product differentiation Cooper has a unique or niche market segment ( Byrom and Lehman 2009) based on a Family owned and distinctive cloudy beer.In addition to the beer portfolio Coopers also has major interests in Home Brew kits and Malt extraction and has about 80% of the kit market (Byrom and Lehman 2009). Porter (1985) suggests that having a differentiated product schema does not necessarily equate to high market share, this can been seen in the competitive market share analysis as seen in the appendix figure 1. However a point of differentiation can be replaced or replicated by a competing company and may reduce the competitive advantage Coopers currently has in the market. Continuous competitive analysis is needed to harbor this a differentiated strategy.4.Coopers Value ChainThe value chain model as described by Porter (1985) indicates that gaining a competitive advantage, an organisation focuses efforts to the internal activities of the value chain and attempt to strength these activities toadd to the competitiveness of the firm. Coopers Bre wery value chain could be reflected in the below diagramSource ISO case study 2013Coopers have made improvements in some of the value chain as seen in the case study, malt extraction for resale,Machinery and new processing operations to brew beer in the bottle or the keg rather than the tank without preservatives and chemicals. Water supply from deep aquifers with sale extract and then reuse of salt in the brewing process. Energy, having their own power generation system that feeds non-used emery back into the grid. Coopers use energy efficient ignition to reduce consumption. These improvements form part of the value chain activities that add to Coopers achieving a competitive advantage in the market. There are many parts to the value chain as reflected in Appendix 4 (Porters Value Chain model) and efforts to manage and maintain each element is ideal. However a strategic bring in and focus may harness high results, it is suggested that aligning value chain efforts with the core di rection of the business. In Coopers case by having a differentiation strategy efforts should be aligned with this strategy including product innovation, R&D and quality.4. Current positionPositioning in this paper refers to the Porters model of one-third Generic Strategies (1985). Coopers can be recognised as Differentiation in the Porters model, seen in Appendix 5. In this cluster Coopers can easily differentiate itself from its competitors. Coopers has an Australian bill with a family heritage that still exists today, additionally having a product that has a distinctive cloudy appearing separates itself from the globalised conglomerates in the Australian beer industry. Coopers leverages this differentiator and applies this to marketing campaigns.5. Future direction for CoopersTo suggest and recommend future options to Coopers, a reflection of Coopers mission statement to provide natural beverages and food ingredients which satisfy tastes and nutritional needs, and create enjoym ent (Hubbard 2008, pg7). This mission statement can be used for the future direction of thebusiness, as marketed as a family owned business and continue to capture the premium niche market it is positioned in. The future has a changing landscape with regards to consumers tastes, Coopers also captures taste in the mission statement. With the changing taste and desire of Generation Y consumers, Coopers competitive edge could be erode by imported premium beers and or the emergence of micro breweries that specialise in premium craft beers. Options can be summarised as follows Continue to leverage the Family owned business brand.Exporting the unique beer overseascontinually improving the value chain and seek further opportunities to capture value. Continually focusing on changing consumer tastes and reviewing whether or not to compete in those markets. This will create new product life cycles, in a declining market (Nwabueze 2001). The future challenge for Coopers would be identifying ne w market opportunities, both on product and geographic level, whilst still achieving the family ownership which has been seen as an advantage since Coopers started.6. APPENDI XESAppendix 1 Competitive Market allocate Australia and South Australia.Appendix 2 Porters Five Forces ModelSourceHarvard Business Review(Porter 2008)Appendix 3 Beer production Value ChainSource (ISO 2013)Appendix 4Appendix 5Source (Porter 2008)7. RefenecesByrom, John, and Kim Lehman. 2009. Coopers Brewery Heritage and universe within a Family Firm. Marketing Intelligence & Planning 27 (4) 516-523. doi http//dx.doi.org/10.1108/02634500910964074. Hubbard, Graham. 2008. Coopers Brewery. IVEY. Business. The University of Western Ontario. The University of Western Ontario. ISO. 2013. Baltika Breweries-Economic Benefits of Standards -Case Study. ISO ORG. http//eng.baltika.ru/. Kaczanowska, Agata. 2010. Beer return in the Us. IBISWorld Industry Report 31212, http//www.ibisworld.com.au/. Nwabueze, Uche. 2001. The J ourney for Survival The Case of New Product Development in the Brewery Industry. JOURNAL OF PRODUCT & BRAND MANAGEMENT 10 (6) 382-397. http//www.mcbup.com/research_registers. Porter, M. E. 1985. Competitive Advantage Creating and Sustaining Superior Performance. New York Free Press, https//www.google.com.au/search?q=Competitive+advantage%3A+Creating+and+sustaining+superior+performance&ie=utf-8&oe=utf-8&aq=t&rls=org.mozillaen-GBofficial&client=firefox-a& shift=sb&gfe_rd=cr&ei=eAyoU5j-Gs3C8ge9v4DACA. Porter, Michael. 2008. The Five Forces That Shape Strategy. Harvard Business Review. http//hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1. Richardson, David. 2012. The Liquor Industry. 14,