961 beer case study

As a result of this competition, it may be quite challenging for startups to catch up and take their place in the market. In this regard, this paper will analyze the 961 beer case study by looking at the PEST analysis, the SWOT analysis among other market entry insights of the Lebanese beer market. The PEST analysis. In Lebanon, four key factors impacted the beer industry that the 961 beer intended to penetrate. Starting with the political factors, the company was launched in 2006 and the political situation at that time was not good as Lebanon was at war and there were bombings everywhere which were accompanied by the frequent assassinations of key public figures. When it comes to the bargaining power of suppliers, the pressure was low given that it sourced all its ingredients both locally and internationally and for this reason, the suppliers were not concentrated or differentiated.

When it comes to rivalry among existing firms, the pressure was high as a big part of the market was already in the control of the major competitor, and other global products such as Heineken were also in the picture. SWOT analysis on 961 beer. In the context of the Lebanese beer market, some of the strengths of 961 beer included an innovative culture based on the story behind it, a useful brand name given that 961 is the country code for Lebanon, unique beer products, and better quality given the company neither used corn nor chemicals in brewing. Some of the weaknesses included production inefficiencies given the technical breakdowns it encountered, a weak supply chain given that 961 beer frequently experienced a delayed supply of products, a lack of economies of scale given the company produced at a high cost per unit, and lastly the company had a relatively weaker brand.

Hajjar has to lower his cost of producing each unit and to enjoy the economies of scale; he needed to increase his production. The first thing to do in this regard is to streamline the supply chain and ensure there are no more delays in the supply of ingredients. The second thing is to hire trained people who would manage the plant and prevent any technical hitches that might hinder production. Since the company may not be able to hire foreign technicians, it should send some of its employees abroad for specialized training. This will ensure the company has trained staff who would be able to correct all technical problems promptly. 60 US$12. 50 Works Cited. Bastian, Bettina. "961 BEER: LAUNCHING A LEBANESE BREWING COMPANY.