International Business: Boston Beer
Boston Beer is one of the local companies situated at the heart of Boston, Massachusetts County. This company is associated with the production and sales of alcoholic beverages that meets the demands of the locals. Some of the specific products manufactured by Bolton Beer company, include malt beverages, hard cider products, foods, and tobacco. This company is fast growing, having an employment portfolio of over 1000 staffs, and an inventory value tabulated at over $3.4 billion as of the 2015 financial period. The company was founded in 1984, and it is currently managed by the CEO, Martin Roper. Due to the good performance of the Boston Beers in the recent past, it has appeared in the Forbes List of the Small American companies that have regional operation.
Product Description
As reiterated above, Boston Beer Company mainstreams its production on beverages, and it has currently adopted a new production platform where it brews over 60 beer brands. Right after its inception in 1984, the company engaged in the production of old family recipe, but later changed its brewing tastes to a large brand of the Samuel Adams Boston Lager, which has become synonymous of Boston Beer. Boston beer has revolutionized the attic and craft of the American Beer production with its 60 styles production of the Samuel Adams beer. In addition, the company pursues other means to produce even finer beer brands and styles, which would execute its objectives in revolutionizing the beer industry in the USA and beyond. From production mindsets of the American Craft Beer, Boston Beer has grown to become one of the most trusted brands at the local level, and its aspiration is to go international.
Factor Conditions
The factor conditions could either favor or disadvantage an exponential growth to Boston Beers. These factors could be seen as potentially harmful to growth and existence of a company, or on a different lens, they could be viewed as potential to the sustainability of an industry (Brockhoff 34). Some of the key factors that Boston Beers Company faces include the investment risks. Four major risks that could prove adverse to any investor interested to invest with Boston Beers include fluctuation in the financial valuations, unsteady economic growth within the company and the industry, higher competition within the industry that makes its financial prospects so unpredictable, and a higher input costs, thus minimizing the profit margin. On the other hand, the industry is advantaged to enjoy the existence of the modern states of art technology, and advanced brewing standards. Besides, Boston beer enjoys the good reputation of craft beers associated with Samuel Adams beer.
Firm’s Local Rivals
Based on Diamond Porter’s Five, existence of business rivalry or competition is a positive indicator to value creation and sustainability (Brockhoff 36). The company faces myriads of business competition from some established firms, and this has kept it upbeat in meeting quality demands of the customers. Some of the competitors to Boston Beers include: Anheuyser Busch Index SA (BUD) and MillerCoors, SABMiller (SBMRY) and Molson Coors Brewing (TAP). The fact that these companies compete in producing craft beers is a platform for Boston Beers to create a competitive advantage over the rest of companies due to its positive history in the production of craft beers. Competition is thus a healthy habit to promoting quality production and excellence.
Firm’s Structure and Strategy
The structure and management of a firm is fundamental to its growth and internationalization. Firms like Boston Beers relies on hierarchical structure, in which commands and policies are disseminated from a central pool to other organs. Thus, this platform would complement the Diamond Five Porters approach to create a more formidable and a competitive structure (Brockhoff 39).
Demand conditions
The demand conditions for the firm’s product could act as a platform for making deeper inroads into the international market. Higher demand for craft beers in the USA could spur a new wave and clamor for such beers in the international markets. Therefore, this clamor would translate to value creation and intervention of the local beers in the internal market. Demand conditions for craft beers in the USA are positive platforms for expanding the operational portfolio of Boston Beers to the International market (Brockhoff 42).
Conclusion and Recommendations
Work Cited
Brockhoff, Klaus. Internationalization of Research and Development. Berlin, Heidelberg: Springer Berlin Heidelberg, 2008. Internet resource.
