Lagunitas Brewing case study.docx - 4 Threat of substitutes(Moderate There are a wide array of other alcoholic and non-alcoholic beverages that can

Lagunitas Brewing case study.docx - 4 Threat of...

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4. Threat of substitutes: (Moderate) There are a wide array of other alcoholic and non-alcoholic beverages that can substitute beer (for example Soju). However, given that beer tends to be cheaper than most of other alcoholic drinks, the price factor mitigates such threat. There is no question that mass-produced beers control the beer market. Local and microbreweries have no chance in the market simply because of the marketing resources of international beer companies. Companies that mass-produce beer use stronger marketing tactics like better commercials on television, billboards, and truck logos to promote their products and increase sales. Local Breweries rely different marketing tactics like word of mouth, innovation, creativity, and community involvement to get their names into the market. Clearly, mass- produced beers such as; Budweiser, Miller, Corona, etc, dominate the market, but craft beer still finds business in the local community. Threat of New Entrants: (Very High) With 2,400 breweries already and another 1,500 planned,
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  • Spring '17
  • Brewing, brewers, Brewery, Microbrewery

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