BO1BSRE301 Business Strategy

Adnams is a well-established company and is one of the strongest competitors in the brewery industry. The company had started its business operation in the year 1872 and since then, the company is growing successfully. The company has received many awards that showcase that it is one of the best businesses in the brewery industry (Adnams, 2017).The vision and mission of the company is not explicitly mentioned but, it is reflected in the values of the company. It is gathered that the major aim of the business is to serve the people by its efficient business conducts (Bowers, 2008).The company’s mission is to add value to the environment and society and to safeguard the planet Earth (Adnams, 2018).The company aims to provide naturally developed products to their customers so that they can enjoy best quality and taste. The company uses barley, rye, wheat and oats to produce their products.

It is also observed that the organization employs the best techniques and distilleries in order to produce their products(Adnams, 2018).On the basis of the Porters five force analyses, it has been found out that the bargaining power of the buyers is very high in the brewery industry. This is so because they have substitutes available in the market like soft drinks and fruit juices. This is one of the greatest challenges and issues those are being faced by Adnams and in order to deal with this, it has been recommended to the company to diversify and start manufacturing fruit juices as well as soft drinks.

The bargaining power of the suppliers in this industry has reduced because of increased existence of competitors in the market and increased taxes on such products. For this reason, the supplier’s profit margin is reduced and along with that the suppliers cannot increase the prices as the existing customers may switch to other substitutes. The existing rivalry within this industry is very high. This is so because the profit margin of the existing companies is low and as a result, they impose intense competition over the new entrants. Barriers to entry are also high in this industry majorly because of the government regulations and higher taxes on this industry. Moreover, barrier to new companies is high as the already established companies have captured a great market share. Availability of substitutes in this industry is high. The close substitutes of beer include vodka, spirits, gin, rum, etc and the distant substitutes of beer include soft drinks and fruit juices. In order to deal with the issue of close substitutes, Adnams has already diversified its product ranges to produce spirits and gin and hence, has ensured a high market share by offering tough competition to rivalries (Wiki Wealth, 2018). Diversification and expansion are among the major business strategies of the company. The company believes in team work and leadership and as a result, has employed experienced as well as new employees in the team (Adnams, 2018). This will encourage new thinking in the organizational culture and the business will be handled with expertise of experienced employees (Adnams, 2018). Considering the industrial position of the company, it can be said that Adnams is one of the well-established companies in the brewery industry.

References

Adnams, 2017. Adnams history. [Online] Available at: https://adnams.co.uk/about/some-history/ [Accessed 23 September 2018].

Adnams, 2018. Adnams Copper House Distillery. [Online] Available at: https://adnams.co.uk/about/copper-house-distillery/ [Accessed 23 September 2018].

Adnams, 2018. Meet the board. [Online] Available at: https://adnams.co.uk/about/meet-the-board/ [Accessed 23 September 2018].

Adnams, 2018. Our company. [Online] Available at: https://adnams.co.uk/about/ [[Accessed 23 September 2018].

Adnams, 2018. The business stuff. [Online] Available at: https://adnams.co.uk/about/the-business-stuff/ [Accessed 23 September 2018].

Bowers, S., 2008. Bluegrass beer baron with a hi-tech style. [Online] Available at: https://www.theguardian.com/business/2008/aug/15/fooddrinks [Accessed 23 September 2018].

Wiki Wealth, 2018. Beer industry - Five forces analysis. [Online] Available at: https://www.wikiwealth.com/five-forces:beer-industry [Accessed 23 September 2018].