nsumers also have power over the brewers- there is no cost to the consumer for switching from one brew to another. Substitute Products- Substitutes to beer include soft drinks, wine, cider, and spirits. Rivalry- Industry growth is slow- consumption dropped 0.5% between 1992 & 1998 -falling volumes have intensified competition between existing brewers as they try to maintain market share. A new entrant would have to take market share from the already suffering European brewers.Key Strengths and Weaknesses of a Successful Company in the Future Strengths- The ability to use imaginative branding to differentiate its products.- Sufficient scale economies to fight new entrants.- Reliable distribution channels.- The ability to lobby government to influence policy.- The development of long-term supplier relationships. Weaknesses- An over-reliance on the retail chains.- The inability to create switching costs to prevent consumers from switching from one beer to another.- An over-reliance on the European market- there are few global brewers from Europe . Diageo- SWOT Analysis Strengths- Diageo displays the ability to build on the power of the Guinness brand to create new products such as Breo and Guinness Extra Cold.- Diageo also shows the ability to differentiate its products through the use of proprietary technology- the patented widget cans are an example.- The brewing division of Diageo now has access to the distribution channels of the spirits division. When the benefits of the merger between Guinness and Grand Met are realised, the beer division will get the benefits of lower administrative, distribution, and marketing costs.- Guinness as a brand is well established world-wide.- A chain of Irish pubs across Europe provides a guaranteed distribution channel and the chance for promotions at the point of sale. These pubs helped to achieve a 9% volume growth in Europe this year .- The strategy of l...
