Competitive Strategy Coopers Brewery

4082 words 17 pages

Competitive Strategy
Assessment 3 – Individual Assignment: Business Report
29th November 2010

Coopers Brewery

Grant Semmler
Student ID: 110013428


executive Summary

This report examines the current competitive strategies of Coopers Brewery Limited (Coopers); a family owned South Australian based beer producer.

Coopers is a public company which is not listed on the Australian Stock Exchange, currently holding a 3.4% market share of the Australian beer market (Coopers Chairman’s Report, 2009). Its major competitors are the Fosters Group and Lion Nathan together holding 94% of the Australian beer market (Byrom & Lehman, 2009).

The company exports to 26 countries worldwide including the USA, UK, India and
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The Porters 5 Forces model (Appendix 3) reveals the following insights into the brewing industry.

Rivalry continues to be the strongest force (Porter, 1979, pp.7-8); and is particularly fierce in this industry with Lion Nathan and Fosters holding 94% of the market. The competition is in the form of pricing and positioning product as premium. Coopers has differentiated itself as a distinct niche brand that is not affected by pricing which mitigates the rivalry force.

Buyers also hold some power in that the switching cost for consumers is low and fashion and tastes can affect the decision of which beer to buy at point of purchase. Coopers have circumvented this force through developing the Coopers Club and having a distinctive tasting product. The opportunity is to convince new buyers for growth.

Substitutes, potential new entrants and suppliers are considered low forces as demonstrated by the chart in Appendix 3.


Coopers total yearly revenue has been steadily increasing for the past 5 years, from $127.4 million in FY05 to $171.3 million in FY09. For the past 3 years FY2006-2009 net profit after tax has remained relatively constant at $19-$19.6 million. These figures combined with retained earnings increasing year on year indicates Coopers has been


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