KIRIN BREWRY; DRY BEER WAR Harvard Case Solution & Analysis

KIRIN BREWRY; DRY BEER WAR  CASE SOLUTION

COMPANY BACKGROUND:

The company is an organization that traces its roots back to the late 19th century when it used to operate under the name of Spring Valley, which was established by an American entrepreneur, W. Copland, in the southern suburbs of Tokyo city. However, the organization was restructured later in 1870s and the company was renamed as Japan Brewery Company Ltd. and it was later acquired by the Kirin Brewery Company Ltd.

The company has frequently witnessed changes in its leadership however, the aim and goal of the company has always been traditional with respect to its customers and targets and the management of the organization whether present our previous ones has always been wary of it. The motto of the company has always been quality first and customer-centric and this has been the sole reason for the success and dominance of the company in the beer market of the country.

INTRODUCTION:

Although the company is still one of the major shareholders in the Japanese market however, the declining market share and operating margins of the company are a cause of concern for the current president and the management of the organization. One of the major reasons in the decline of the company market share is the changing trend and preference of the society and population of the country and the lack of the management of the organization to respond to it. The market has significantly changed along with the customer preference. The dynamics of the industry have changed along with the change in the tactics and strategies of the competitors of the company.Although the management of the company has kept its word regarding the quality part however, it is far behind others in the customer specific part of its business motto.

The introduction of the dry beer by Asahi breweries after massive research and development has changed the transcript and entire playing field for the breweries companies in the industry of the company. In a very short period of time, it has leaped to become the second most dominant organization of the beer industry of the country in terms of its market share and growth. Its percentage of market share as compared to Kirin has become very narrow and decreasing on a daily basis.

To counter this threat, the management of Kirinis at cross-roads and is considering several alternatives in terms of launching new products in the markets of the country and the discussed products are Malt Dry, Kirin Cool, Kirin Fine Pilsner and Kirin Fine Draft. However, the president of the organization is against this move as he is of the view that introduction of so many brands simultaneously might confuse the customers and the costs for the company will also increase.

PRIMARY ISSUE OF THE ORGANIZATION:

“The primary and most critical issue for the management of the organization is the sustaining of the market share of the organization and improving the growth of the business to counter the competitors in the industry of the country”.

DIAGNOSIS:

The beer market of the country is the fourth largest market in the world in terms of customer base and average yearly consumption of the population of the country.Moreover, the organization has also been the fourth largest breweries company of the world in terms of the production activities of the organization over the past several decades.
It is the most dominant organization of the industry since many years however; the circumstances and the environment of both the industry and the target market of the country have changed over the years with newer trends and changing customers’ tastes. The introduction and launching of dry beer from the Asahi brewery has changed the dynamics and the industry completely altogether as it has been successful in penetrating the market of the country.....................

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