Case Study in Cobra Beer

...

In Germany, considered the main cradle of Industry, industrial automation already works under new parameters, in which processes are almost completely automated (Industry.siemens.com, 2017). One of the technologies that have been tested and closely observed by the German industry and the government, with expressive results of performance and return in industries as diverse as the brewer and the automobile, responds by the name of Simatic(Industry.siemens.com, 2017).

In Amberg, Bavaria, a whole line of hardware works without interference from employees thanks to Simatic. In the first step, a printed circuit board is inserted into the assembly line by human hands and from there on, everything runs independently and automated(Industry.siemens.com, 2017).

In relation to the consumption of natural resources, the brewing sector is characterized as a consumer of large amounts of water, which, in general, must be of excellent quality. In addition, due to the nature of its operations, centered on fermentation and full of cleaning steps, the flow of effluents generated is high, with moderate or high organic load and suspended solids((Fillaudeau, Blanpain-Avet and Daufin, 2006).

In the past years a lot companies are already adopting measures to reuse the water used to cool the must, mixing malt with other components and hot water (Fillaudeau, Blanpain-Avet and Daufin, 2006).

2.2 Micro Environment Analysis – Porter’s 5 Forces Model

The influence of substitute products on the brewing market is a moderated force if we consider the long tradition of beer that was probably born in the middle Ages and to this day is savoured by consumers. What exerts a strong influence in this market is the relation of dependence between the level of income of the population and the consumption of beer (Larimo, Marinov and Marinova, 2006). Many people fail to replace it with another alcoholic beverage in periods of unfavourable financial conditions, but this cannot be considered a substitution since the desire for the beer product remains, and as soon as the economy and income level improve, consumers return to choosing it over others (Koksalan, Erkip and Moskowitz, 1999).

Rivalry between competitors on the brewing market is a high force. In the brewing market competition among companies is the most significant competitive force and certainly the stage where the success or failure of current and future market participants will be defined. However, even though it is not a market characterized by a large number of competitors, the dispute is intense since all companies work on very low profit margins, the main form of competition are the large advertising campaigns that aim to expand or increase the company's position (Larimo, Marinov and Marinova, 2006).

In almost all segments of the market the power of buyers is weak and the beer market is no exception. This is because customers generally accept to pay the higher prices of beers as a result of expensive inputs and distribution costs, in the search for a product differentiated from other. However, consumers often enjoy tasting different flavours and types of beer. In this way, they do not configure themselves as a faithful public to a brand, causing that there is greater competition between the different brands and stimulating that they are always launching new types of beers (Koksalan, Erkip and Moskowitz, 1999).

Like buyers, suppliers are facing the same trend of reducing the number of participating companies and increasing concentration and increase in the size of companies. Low-cost, low-cost industry pressure favours large, capable companies to mass-produce and optimize production costs. This brings more returns to large suppliers, who are acquiring smaller companies and strengthening their bargaining power with respect to the industry.

On the other hand, the possibility of substitute inputs is somewhat threatening to suppliers, as was the case with the substitution of steel cans for aluminium, but apparently there is no likelihood of a similar occurrence in the coming years (Nappi, 1990).

The level of retaliation of companies in Industry is very low because companies have generations of loyal customers to the brand. We soon see the threat of new entrants as a weak force. The main reasons for this strength to be considered weak are the major barriers to entry. It requires a high investment to start a production scale, which is even greater when added the minimum investments in distribution and marketing to ensure the effectiveness of the company (Vrontis,1998).

As can be seen from the analysis of the alcoholic beverage industry can be classified as an industry with high profitable and profitable potential. However, in order to achieve a privileged position, it is necessary that the company have the skills to make the best use of the described environment and to be able to influence the forces in its favour. And that depends on the competitive strategy adopted.

- Analysis of the internal environment

3.1 Tangible resources

Cobra beer specialises in a smooth, non-gassy, but not too bitter product, that goes well with curry. In a very competitive market those characteristics makes them more competitive and unique from their competitors. The company mission is to brew the finest ever-Indian beer and make it a global brand. Cobra is now stocked in 98% of licenced curry houses around the UK. The beer exports to 40 different countries, and is entering the market in Australia and Canada this year. It’s brewed in India, Belgium and the UK (Campaignlive.co.uk, 2017).

Cobra beer is making sure they have a better or different product that they passionate about, making the company strategy more resource and capabilities based (Campaignlive.co.uk, 2017).

Cobra beer products are complex is terms of transparency, transferability and duplicability. This truly is an unusual beer. It doesn’t taste like any other, let alone any other lager. Making it hard to think of copying a product so unique.

If these resources and capabilities are non-replaceable, the company will sustain this advantage; the realization of such advantages will enable the company to Short and long-term performance.

3.2 Intangible resources

Intangible resources are the result of accumulated knowledge and can provide a competitive advantage for the company as better integration among its many activities in order to respond faster to market demands, greater commitment of the workforce in order to provide service to customers, high rate of innovative and good quality