Current Condition of Craft Beer Alliance (CBA)
Currently, this company occupies the fifth position in the general rating of the craft brewing companies in US. This brand occupies the leadership positions in terms of brewing, as it offers its clients the best and the most popular craft beers in America (Hubbard et al 480).
This business entity was established in 2008, through merger of the two major craft brewers in the Pacific Northwest region - Widmer Brothers Brewing (which has been originally established in 1984) and Redhook Brewery (created in 1981). After the merger, which has been innovative in its nature, the core purpose of the Alliance was to expand the market share as well as meet the expectations of the demanding consumers. Later, this Alliance was joined by Kona Brewing Co., which has been the largest and the oldest craft brewery in Hawaii. Such Alliance has brought the originals to the US beer lovers: Redhook ESB, Widmer Brothers Hefe, Big Wave Golden Ale, Kona Longboard Lager etc.
Despite owning the popular brands of beer, which are derived from the local heritage of brewery, this business entity is tending to create and popularize the innovative trends in brewery, which are recognized and appreciated by its target audience. As an evident example of such product, it is possible to refer to the Omission Beer (which has been developed in 2012 and has already reached the position of #1 beer in the category of gluten-free beers). In 2013, the Alliance has launched the production of the Square Mile Cider; it was done as the tribute to the classical and the pioneer beverages. Currently, the Cider occupies the position of pioneers, #2 hard ciders in the region (Craftbrew 1).
Competitive Advantages of the Craft Beer Alliance
Competitive advantages of the Craft Beer Alliance may be outlined in the context of its progress in terms of the major purposes, which were initially set for 2014 and then followed by its management. They were the following: strong and continued growth in the topline alongside with the Stock Keeping Units reduction for 25 %. In addition, the management of the Alliance has put an emphasis on the development and promotion of its core beers. For this purpose, the biggest investment was issued for the media promotion of Kona Brewing. The operations within the supply chain were also improved for further driving of expansion of the gross margin.
While there was the set of the changes within the beverage industry, the Alliance has used its almost 30 years of experience - such as involvement of the tenure as the CMO at Heineken USA. There is a currently existing option of leveraging the craft brands’ distinctive portfolio alongside with the capability of national distribution, where the major emphasis is put on the shift among the potential and existing clients to variety in flavors and authenticity of the product.
The current strategy of the business development of the Alliance is mainly oriented on satisfaction of the different consumer trends, which, in turn, leads to the innovational changes within the industry as well as its unprecedented growth. Additional strategic emphasis is put on the key channels and geographies and further promotion of the key offered beers.
Finally, the Alliance is tending to bring its “body of a big brewer” to the life in the national scales. That is why, this business entity was recognized as the sole beverage company and in 2013, it was awarded with the “Vendor of Excellence”. The major focus for 2015 and 2016 is put on maximization of the grocery’ package opportunities and expansion of the brand awareness, which has the potential for stimulation of its further growth (Craftbrew Conference 1).
Most Important Internal Factors
Distinctive advantage of this business entity is represented by its approaches towards the brewery. More than 30 years of experience in the industry has provided the Alliance with the option for development of the national-scale infrastructure, which has the capabilities for matching the expectorations of the most demanding clients. The core advantages in this case are the adherence to the high quality production and authentic local brews.
The major internal factors of success of the Alliance were initially stated in its organizational values (CRAFT, which refers to: creativity, respect, accountability, fun and teamwork) and are followed within the whole period of its functioning. The culture of the company is reflected in its values – where the major emphasis is put on the competition, authenticity and collaboration and the high rate of social responsibility (Shin 108). These values define the core strategies, the company stands for, as well as they represent the further expectations of the organization – both internal and external.
Creativity refers to the ways of the company’s evolvement and further adaptation to the changing business and social environment, which may be characterized by the high rate s of competition and preferences of the clients to the high quality services and both innovative and classical products. In order to address these challenges, the organization embraces the changes instead of fearing them. The risks are accepted and the new solutions for the major goals achievement are found, as every day and each particular challenge are considered as the option for learning something new. In such way, the management is inspired by innovations, stays agile and develops the further strategic options for the development.
Respect pertains to the impact, made by the manufacturing activity of the Alliance, on environment and people. For this purpose, the management of the company has fostered the culture of respect and dignity, which is aimed on encouragement of diversity as well as enables the vast potential for everyone within the US society.
Accountability of this business entity has enabled its management to achievement of the highest standards in safety and quality (Kozami 370). In other words, the commitment of this organization to its authenticity is represented via its accountability in relation to the actions and activities of its management and employees.
Fun implies the adherence of the management for enjoying the journey in the same manner as the deserted outcome. This may be done via the fruitful collaboration in team. For this purpose, the company has created and maintains the inclusive environment, which fosters strong relationships and inspires the collaboration (Craftbrew 1).
Future Expectations
After conducting the strategic analysis of the CBA, it is possible to state a fact that this Alliance has the great potential of further development and it is currently concentrated not only on income generation, but it strives for active engagement of community into its environment. Additional attention should be put on the fact that the top management of this organization is adherent to the authenticity of the brand, and thus, the operational process encompasses the classical technologies, which are already popularized and appreciated among the target audience, and the innovations, which are actively practiced in the scope of the manufacturing processes. Such approach towards business makes the CBA competitive and creates additional options for it further development and prosperity.
Works cited
Craftbrew Conference . Craft Brew Alliance shares 2015 plans at second annual national conference. 2016 <http://craftbrew.com/2014/10/01/craft-brew-alliance-shares-2015-plans-at-second-annual-national-conference/>
Craftbrew. About. 2016 <http://craftbrew.com/about/>
Hubbard, G., Rice, J., Galvin, P. Strategic Management. Pearson Australia, 2014. Print
Kozami, A. Business Policy and Strategic Management,2e. Tata McGraw-Hill Education, 2002. Print
Shin, K.Y. Corporate Social Responsibility Reporting in China. Springer Science & Business Media, 2014. Print
