South Delaware Coors Inc. Situation Analysis

Case No./Title: Case 3: South Delaware Coors Inc.                          Date:  August 1, 2015

Situation Analysis

Larry Brownlow was in situation where he realized that deciding to apply for a distributorship in southern Delaware with Coors, Inc. is not as easy as it seems. Since Coors Inc. announced for opening distributorship in south Delaware, where Larry resides, the timing of the opportunity is something that Larry could not just let pass or overlook. Now, he is faced with a challenging decision of whether or not to invest in Coors distributorship. This means that Larry must first have thorough understanding on the preferences of potential buyers of Coors beer in order to assess the profitability of his business plan. He would need research data to estimate its feasibility which led him to Manson and Associates, well known for the quality of its work on feasibility studies, to seek assistance on this matter. The firm’s commitment of report completion on February 20, 1989, Larry would still have a time to make a decision before the March 5 deadline for the distributorship application. With limited funds for feasibility research of only $15,000 access, Larry should decide on what research studies he should procure from Manson and Associate to help him make a decision to pursue on this business venture.

Problem Identification/Statement

What types of research would Larry get from Manson and Associates?

SWOT Analysis

Strengths and Opportunities

Coors having no product presence in the south Delaware area has made Larry think of applying for the Coors distributorship. Based from what he gathered from his own research, in general not just with Coors, there is a market for beer with consumer preference of beers in bottles and cans over kegs. Putting into consideration Coors, Inc. as the fourth largest seller of beer in the country, with good market shares, strong brand name, and known for its high quality product. There is an opportunity for Larry to succeed provided he will go through the business.

Strengths and Threats

Larry, though have an access to credit line total estimate of $800,000 to start his distributorship and a trust fund of $500,000 in the near future to offset any unforeseen circumstances, would overall help him start up his business. There are external factors that could affect the profitability and marketability of Coors beer in south Delaware.

Coors Inc. being able to establish already his position in the market as the 4th largest seller of beer, has faced with different issues. Despite being able to have a good quality product and have already established a strong brand name, they have a negative impression on some customers or minority issues due to nonunionized workforce. There is also big factor of competition from similar beers already in the market and competition for substitutes.