Forked River Brewing Co.: Craft Beer Entrepreneurship In An Evolving Industry Harvard Case Solution & Analysis


Forked River Brewing has been established as the entrepreneurial plan of the three partners, namely Dave Reed, Andrew Peter and Steve Nazarian as an outcome to sustain in the UK market in times of uncertainty.Though all these three players already have developed taste and expertise in brewing beer, but it remained ahabit and not business until Reed proposed the idea to offer small scaled beer in the market with different taste, and which operates within the Ontario state.Since North Americaand Ontario are greatly coveredbygiant players with brewing facilities outside theregion, many peopleface the issue of limited beer types in the stores, leading to monotonous business practice.

Analyzing such trend and market gap, Reed,alongwith twopartners established the Forked River that offered limited edition beers, specialbeer and also premium beer, produced in-house.During the initial period, the threeplayers managed to perform all thetasks from designing the equipment to logistics by themselves so as to secure the cashflow stream and to manage the operations without depending on external financing options.

Since Forked River offeredvaluable taste and opportunity to the retailors to have different variety of beers in the bars and additionally, it increased the profitability of the company tremendously, over succeeding the benchmark for the year 2013.Such growth andsales depicted the greatviralityand adaption of the beer type in the market, thus, opened up the gateways for Reed to penetrate the market with more concrete and sustained offerings, sustaining its position in the long term.

Forked River Brewing Co. Craft Beer Entrepreneurship In An Evolving Industry Harvard Case Solution & Analysis

Moreover, though the brewing industry in terms of small scale producers,remains friendly, however, the increasing competition in the local market may transform the friendlybusiness practices in the long term.In such situation, Reed has to decide the long term strategies that could be used in order to sustain in the market.


Critically evaluate the competitive environment for the beer-brewing sector. Explain what you think Forked River Brewing CO. should do as a result your analysis?

Porter 5 forces Analysis

Bargaining Power of the Buyer

The bargaining power of the buyer is high to medium in the market. It is due to the fact that since buyers have the option to purchase the beer from the giant international labels, along withthe easy access to other local beerlabelsavailable in the market.Though the factor of taste and quality greatly controls the loyalty of the customerand hence,affects the switching cost, however, the large array of beer in the market offered through local and international players reduce the switching cot and hence,increases the bargainingpower.

Bargaining power of the Supplier

The bargaining power of the supplier is low. It is due to thefact that majority of beer producers tend to prepare the beer at their own end, integrating the business operation backward. Moreover, since the method to prepare the beer is easy andrequires a certain amount of expertise, the businesses merelyrelyfully on the suppliers.

Threat of New Entrant

The threat of new entrantsis high in the market.It is due to the fact thatsince the barriers to entry are low, along with the lowgovernmentregulations to restrict the entry of new player..............

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