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1. Coors was very successful through the mid-1970s. What was its strategy historically?
1. Procurement – Coors stressed quality and self-reliance.
This company used the “pure rocky mountain spring water.” Company had 60 springs on company-owned land in Golden, Colorado. It also had its own processing facilities of raw(agricultural) materials and made most of its labels and packaging by itself. Coors developed all-aluminum can for made most of its labels and packaging by itself. Coors developed all-aluminum can for beverage and can recycling program at the first time. Coors try to become self-sufficient also in energy.
Comment: If the company produced agricultural inputs and had processing facilities, that company might not influenced on bargaining power of suppliers such as tyrannical force of suppliers or current price of inputs or lack of ingredients(because of natural disaster). In addition, because its producing factories gathered, it’s much convenient of operating and managing related factories. Also, it didn’t cost margin money of buying products from suppliers. However, this strategy means that while others invested to their expansion, Coors invested to its own facilities. Therefore, Coors’s developing speed must be slow.
2. Production – Coors emphasized quality and scale.
The quality they focused on was its brewing process. Coors used its “natural fermentation”, aged its beer for 70 days.(others 20-30days). Instead of pasteurizing beer, it packaged as draft. To avoid bacterial contamination, it refrigerated its beer to warehouse. Both of them cost much than other companies. Traditionally it only controlled its single kind of beer, Coors premium.
Comment: This brewing process is so unique. Because of using its “natural fermentation”, it could minimize the use of additives, but it blocked more capital than others.
1. Procurement – Coors stressed quality and self-reliance.
This company used the “pure rocky mountain spring water.” Company had 60 springs on company-owned land in Golden, Colorado. It also had its own processing facilities of raw(agricultural) materials and made most of its labels and packaging by itself. Coors developed all-aluminum can for made most of its labels and packaging by itself. Coors developed all-aluminum can for beverage and can recycling program at the first time. Coors try to become self-sufficient also in energy.
Comment: If the company produced agricultural inputs and had processing facilities, that company might not influenced on bargaining power of suppliers such as tyrannical force of suppliers or current price of inputs or lack of ingredients(because of natural disaster). In addition, because its producing factories gathered, it’s much convenient of operating and managing related factories. Also, it didn’t cost margin money of buying products from suppliers. However, this strategy means that while others invested to their expansion, Coors invested to its own facilities. Therefore, Coors’s developing speed must be slow.
2. Production – Coors emphasized quality and scale.
The quality they focused on was its brewing process. Coors used its “natural fermentation”, aged its beer for 70 days.(others 20-30days). Instead of pasteurizing beer, it packaged as draft. To avoid bacterial contamination, it refrigerated its beer to warehouse. Both of them cost much than other companies. Traditionally it only controlled its single kind of beer, Coors premium.
Comment: This brewing process is so unique. Because of using its “natural fermentation”, it could minimize the use of additives, but it blocked more capital than others.
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