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Existing State

Management Summary of Problems/Opportunities

Overall, the beer industry is an extremely competitive industry operating in a stagnant and declining market. Macrobrewers have dominated the market; however, microbrewers have been able to erode market share by the product distinction of a perception of higher quality beer. Macrobrewers have countered this threat by posing as faux microbrewers often utilizing a repackaging and remarketing of existing product. This measure has been to no avail. Such tactics have merely given macro-micro brewers the image of trying to imitate quality. Contract brewers have also defined a market niche by circumventing capital costs to macrobreweries with excess operational capacity. Lastly, the market has also been substantially eroded by the increasing trend of substitutable alternative beverage consumption. This pattern is well entrenched in the socio-cultural fabric of the baby boom generation that espouses healthy lifestyle behaviors that will likely plague the industry for at least the next 30 years.

A stagnant and declining market is projected for the beer industry for the near and long term. The potential for new beer markets is low and rather risky. Therefore new market business strat


3. Differentiation and Focus: Entrance into the microbrewing industry with a new microbrew recipe and image.

Since taxes are evenly applied to all Canadian brewers and proportioned to production, tax on domestic beer sales is not a significant competitive impact among domestic beer companies. This simply represents a comparable factor in pricing. However, the comparable lower tax rates in the United States provide positive impact potential and opportunity for Lakeport when considering export sales.

Another prominent socio-cultural issue facing the beer industry is the negative health effects related to use and/or misuse of alcohol. There has been a major shift in lifestyle attitude in the past 20-30 years among the population. A large percentage of the people recognize a personal responsibility toward healthy lifestyle practices including abstaining from alcohol consumption. This attitude is grounded in the belief that consumption of beer can lead to a lifetime of alcohol dependence and can increase the risk of obesity, heart disease, stroke, oral cancer and other maladies. Beer as well as other forms of alcohol are cited as contributing to one-third of all traffic deaths and a majority of cases of violence (Wolfe, 1998).

Some topics in this essay:
Brewers Canada, Force Model, Beverage Corporation, Anheuser-Busch Wolfe, United Canada, Miller Jentz, Problems/Opportunities Overall, Variable Lakeport, Europe Russia, Canada United, wolfe 1998, beer industry, lakeport beverage, beverage corporation, lakeport beverage corporation, canada 2003, brewers canada, brewers canada 2003, contract brewers, lakeport 2003, impact lakeport, miller jentz, miller jentz 2003, jentz 2003 impact, supply chain management,

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Approximate Word count = 12533
Approximate Pages = 50 (250 words per page double spaced)


  

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