UK Brewing Industry Assignment Example | Topics and Well Written Essays - 2000 words

UK Brewing Industry - Assignment Example It is irrefutable that the brewing industry and its market in UK have significantly changed over the years. It should be noted that most of the common assumptions and preconceptions of manufacturers about their distribution channels and consumer preferences are now obsolete. Thus, Coors Brewers Ltd. (Coors) needs to institute a change of strategic directions in order to account for these important developments and trends. This report generally aims to identify the various future strategic options for Coors. The first section will conduct an environmental scanning which will examine the different changes in the market of the business organisation. Secondly, this report will briefly outline its recommendations on how Coors can further enhance its performance by using its strengths and core competence to take advantage of the opportunities in the UK market. These will be conducted through the use of strategic management tools specifically the Ansoff Matrix. The market for alcoholic drinks is a very important sector in the UK market. It should be noted that the brewery sector generates more revenue than the other large industries like clothing, motor vehicles, tobacco, and confectionary. However, there has been a decreasing trend in alcohol consumption within UK households. It also noted that the traditional beer consumption in public houses is now overshadowed by the increasing consumer preference to consume brewed products at home as this is perceived to be more socially acceptable. The major trends in the UK brewing industry are identified as follows: "there is a growing female and mixed group influence; going to a public house is a leisure activity; consumption is often driven by occasion and events in both on-and off-trade; premium beers are becoming an important sector; there is wide choice of outlets; and there is a wide choice of brands." In addition, it should also be added that breweries which compete with Coors are now dismantling their previously owned public house estates. The younger generation also has the inclination to lagers which is a high profit segment for brewers. These diversions from the traditional market conditions posts many strategic options for Coors and other players in the UK alcoholic drinks market. The Ansoff Matrix The Ansoff's Matrixis a tool in strategic management which is utilised in order to aid in deciding the product and market growth strategy of a company. After its publication in the Harvard Business Review in 1957 in an article entitled, 'Strategies for Diversification,' this strategic management tool has gained wide popularity and recognition in the marketing world. Ansoff Matrix is specifically useful for business organizations which have growth objectives. Ansoff's product/market growth matrix suggests that a business' attempts to grow depend on whether it markets new or existing products in new or existing markets. Four strategies are generally prescribed-market penetration, market development, product development and diversification. Market penetration is a company's strategy which aims to serve current market with its existing products. With this growth strategy, the company aims to increase