Cobra Beer Strategic Analysis
Table of contents
I.Executive Summary 3
II.Introduction 3
III.Analysis of the External Environment 4
Macro Environment Analysis 4
Micro Environment Analysis 6
IV.Analysis of the Internal Environment – Value Chain 7
V.Analysis of the PR Crisis 10
VI.Strategic Analysis 11
Business Level Strategy 11
Corporate Strategy 11
Future Strategic Options 12
VII.Conclusion 13
Executive Summary
Cobra Beer is the well-established UK beer manufacturer with good reputation in the country and beyond. It started its operations as the company offering unique Indian beer to UK market. The company experienced several crises in its history and as a consequence of the last economic crisis entered into joint venture with Molson Coors – large international brewery corporation being presented all over the world. At the moment Cobra Beer plans to evaluate its existent corporate and business level strategies and develop the new strategic focus.
For the purpose of this evaluation the internal and external factors impacting the company’s development were analyzed. Among the most important external factors, influencing the UK beer industry can be mentioned growing concern about the healthy life style and rapid technological development of the sector. The existent UK market reached its maturity stage. It is still attractive for the new entrants and rather profitable. At the same time, the distinctive competencies that impact Cobra Beer performance include the superior quality of its products and advanced technologic development being reflected in the product design. At the moment the company’s business level strategy is differentiation and its corporate strategy is market development. In order to perceive the long term competitive sustainability Cobra Beer is recommended to follow the diversification strategy through the introduction of the new products to the existent market and to start international expansion through mergers and acquisitions at the target markets.
Introduction
Effective management of the large corporation is not an easy task and to sustain the long-term competitive advantage it is essential to evaluate the existent strategy of the company and to develop the new approaches to the achievement of strategic goals. Cobra Beer being the well-established beer manufacturer in UK and beyond after the strategic joint venture with Molson Coors has to change its strategic focus and to develop the new business level and corporate strategies in line with the external and internal factors, influencing its development. This report plans to deeply investigate the external and internal environment of Cobra Beers, to address the recent PR crises that the company faced and to perform the strategic analysis of Cobra Beers with focus on its business level and corporate strategy. Finally, the report will provide recommendations concerning the future strategies for the company and implementation modes for these strategies. Each of the recommended strategies will be evaluated according to its sustainability, acceptability and feasibility. The future success of Cobra Beer significantly depends on its ability to modify its business level and corporate strategies according to the external and internal factors that impact its development.
Analysis of the …
