Lauching a Lebanese Beer Company Essay Example for Free

Lauching a Lebanese Beer Company try onIntroduction 961 Beer has a fascinating history which illustrates to aspiring entrepreneurs that with hard work and determination, even crazy art ideas ar able to succeed. At a clipping when building were being destroyed and the city of Beirut, Lebanon was in shambles, the founders of 961 Beer decided to move for ward with founding Lebanons first craft brewing confederation a surprising fact because this region of the world begin the tradition of brewing beer.As discussed below at bottom the framework of a SWOT compend, several factors contributed to the mastery of the beau monde, and exit play an integral part in the companys future as it expands to meet take in. SWOT Analysis A SWOT outline is meant to drive a company into meaningful action to capitalize on its strengths to seize opportunities as well as protect itself from startside threats or internal weaknesses. Strengths 961 Beer is fortunate in that it benefits from se veral internal strengths. Organizationally, the company is simplistic with few employees and condensed management, the company is able to benefit from the strong direction of a convey few.In addition, the few people involved, particularly Hajjar and Henrik, relieve oneself a passion for food and drink and enjoy the surgery of providing high quality wine to their customers. In addition, with less baggage the company is able to quickly pioneer and adapt to changes in the customers tastes. Hajjar is overly very passionate slightly food and wines of the region, leading to his dedication to the success of 961 Beer. He provides leadership that focuses to a greater extent on the product itself, in govern to ensure that it will be a beer that the Lebanese will be 1 proud off.As a recent CEO, Hajjar also appears to bring a substantial amount of capital to initially invest in the business. However, money runs out quickly, and now 961 Beer must pay for itself. The 961 Beer product line also has several strengths. The beer is of high quality because it was stimulated using only fresh ingredients and in small batches. The company is able to produce several new beer styles, and it heavy uses Lebanese products in brewing its beer. This gives 961 Beer a unique advantage over other beer options, and it attracts customers who are smell to try something new, all epoch support Lebanese products. Several areas of marketing also have particularized strengths.961 Beer was able to coin the catchphrase Are you resistant to change? which took off in a time when the country was suffering from the effects of war. Change is a simple idea that is very popular in a downtrodden country, and by associating itself with such(prenominal) a concept, 961 Beer is able to appeal to a large group of dominance customers. To further this concept, the packaging is deliberately under-designed and meant to be seen as simplistic, pure, and natural, which will attract customers interested in such aesthetic characteristics.The pub is also strategically placed in Beiruts bustling nightlife scene. This helps to adjoin 931 Beer recognition and build brand loyalty among new customers. The pub also helps to provide as a gathering place for people to come and education themselves about the brewing process and try miscellaneous types of beer. Weaknesses Like most entrepreneurs, 961 Beer was started by founders who had very little idea of what they were doing. By trial and error, Hajjar was able to brew batches of beer in his kitchen for several months until the beer began to improve.Although 2 Organizationally, the company is operating at capacity and is simply unable to produce any more for its additional customers. Also, it does non appear that 931 Beer is able to adequately predict how much demand is set to grow. Because the company is close up new, there is little money for expensive advertising. This means that customers will be less mainstream, and more trendy, with t he ability to follow the latest trends on the internet. Opportunities 961 Beer is the first craft beer in Lebanon in recent memory, even though Lebanon has a history in beer brewing.Education of customers leads to a fun, exciting have intercourse that allows customers to experience change by trying more types of 961 Beer. This opportunity to provide a personal breath will give customers a lasting positive impression of 961 Beer. Personal interaction with customers allows the company to attract feedback on its beers and make adjustments. Customers are interested in supporting companies that heavily use Lebanese products. particularly when the country is plagued by war, providing people the opportunity to work and be part of 931 Beer is a great centering to create loyal customers.Advertising on social media is an effective way of reaching the younger, trendier crowd that is more along the lines of who is frequenting the bars and drinking on a regular basis. Threats Clearly, the c olossal threat to the companys survival is the place of its headquarters. Lebanon is routinely in wartimes, and has been through several wars with nigh countries ever since 961 Beer began in 2006. Unfortunately, visitant levels to the 961 Bar decrease when conflict developings, which makes sales plummet. The competitive environment is monopolistic.The local beer market was monopolized by Almaza, which was acquired in 2002 by Heineken. In total, Heineken 3 controlled about 70% of the local beer market at the time 961 Beer was founded. With so much power, Heineken has pricing power that 961 Beer housenot match. Other bars became more reluctant to sell 961 Beer because the bar was seen as a threat to their own business. 961 Beer will need to befriend these bars and show them that the bars can enjoy more success by joining 961 rather than going against them. Many customers are not accustomed to drinking anything besides commercially processed, mass-produced beer from large competito rs.This means that 961 Beer must educate their customers about the different types of beers and convince them to try 961 Beer. Evaluation Plan Expand outside of Lebanon Based on the analysis performed above, it is clear that 961 Beer must expand out of Beirut, Lebanon in order to remain successful. While this will increase the find of lesser quality or require the use of non-Lebonese products, expansion is required to ensure the companys long-term success. Several steps must be taken before the expansion, all while 961 Beer continues to grow business in Beirut and manage bar operations.First, 961 Beer must address its capacity issues. 961 Beer seems to have had some difficulty in predicting the amount of beer it needs to brew in order to meet the growing demand. An analysis of their books will be helpful to garner a better idea of what demand will look like in the future, accounting for their companys growth rate. Next, 961 Beer needs to establish relationships with businesses in n eighboring cities and countries. Bottling and shipping beer from Lebanon is unrealistic with high likelihood of war, so 961 Beer will need to establish microbreweries within these other locations.Quality can still be maintained by ensuring that Lebanese ingredients are still used in the brew, but costs can be recuperated by charging customers in those 4 countries a higher premium for the same beer. Finally, 961 Beer needs to join international beer festivals in other countries in order to garner worldwide interest and to further increase recognition and demand among worldwide customers. There are several major risks that could undermine this plan for expansion. Clearly, the largest threat to 961 Beer is the ongoing threat of war in Lebanon and neighboring countries.Unfortunately, there is little to nothing that can be done to stop this threat. Without expanding into other countries, a war in Lebanon could wipe out the entire company. However, as discussed above, 961 Beer can minimi ze this risk by establishing kick downstairs microbreweries in other countries so that there is no single source where 961 Beer is brewed. Nonetheless, establishing other microbreweries increases another risk the risk of uneven and unequal quality. 961 Beer can lessen this risk by brewing its brewmasters select along with seasonal beers to appeal to customers in the new countries. 5.