Lauching a Lebanese Beer Company Essay

Introduction 961 Beer has a fascinating narration which illustrates to aspiring entrepreneurs that with hard work and determination, charge crazy business bases argon able to succeed. At a while when doing were being unmake and the city of capital of Lebanon, Lebanon was in shambles, the founders of 961 Beer decided to move forward with founding Lebanons first craft brewageing telephoner a surprising incident because this region of the world begin the tradition of brewing beer.As discussed below within the framework of a SWOT synopsis, several factors contributed to the success of the corporation, and leave behind play an integral part in the companys future day as it expands to meet demand. SWOT Analysis A SWOT analysis is meant to drive a company into meaningful action to capitalize on its strengths to seize opportunities as well as protect itself from outside curses or internal weaknesses. Strengths 961 Beer is fortunate in that it benefits from several internal st rengths. Organizationally, the company is simplistic with few employees and condensed management, the company is able to benefit from the strong direction of a select few.In addition, the few people involved, particularly Hajjar and Henrik, have a passion for food and drink and venerate the process of providing game fibre wine to their customers. In addition, with less baggage the company is able to cursorily innovate and adapt to changes in the customers tastes. Hajjar is also very passionate well-nigh food and wines of the region, leading to his dedication to the success of 961 Beer. He provides leadership that focuses more than on the product itself, in severalize to ensure that it ordain be a beer that the Lebanese will be 1 proud off.As a recent CEO, Hajjar also appears to bring a substantial pith of capital to initially invest in the business. However, money runs out quickly, and at once 961 Beer must pay for itself. The 961 Beer product line also has several strengths. The beer is of high character reference because it was produced using only fresh ingredients and in small batches. The company is able to produce several new beer styles, and it firmly uses Lebanese products in brewing its beer. This gives 961 Beer a unique advantage over other beer options, and it attracts customers who are looking to try approximatelything new, all while support Lebanese products. several(prenominal) areas of marketing also have specific strengths.961 Beer was able to coin the catch phrase Are you resistant to change? which took off in a time when the country was suffering from the effects of war. Change is a simple idea that is very popular in a downtrodden country, and by associating itself with such a concept, 961 Beer is able to appeal to a large group of potential customers. To however this concept, the packaging is deliberately under-designed and meant to be seen as simplistic, pure, and natural, which will attract customers raise in such aesthetic c haracteristics.The pub is also strategically rigid in Beiruts bustling nightlife scene. This helps to increase 931 Beer recognition and build brand loyalty among new customers. The pub also helps to provide as a gathering location for people to come and education themselves more or less the brewing process and try various types of beer. Weaknesses Like most entrepreneurs, 961 Beer was started by founders who had very slender idea of what they were doing. By trial and error, Hajjar was able to brew batches of beer in his kitchen for several months until the beer began to improve.Although 2 Organizationally, the company is operating at electrical capacity and is simply unable to produce any more for its additional customers. Also, it does non appear that 931 Beer is able to adequately predict how much demand is even up to grow. Because the company is ease new, there is little money for expensive advertising. This inwardness that customers will be less mainstream, and more tre ndy, with the ability to follow the modish trends on the internet. Opportunities 961 Beer is the first craft beer in Lebanon in recent memory, even though Lebanon has a history in beer brewing.Education of customers leads to a fun, raise experience that allows customers to experience change by trying more types of 961 Beer. This chance to provide a personal touch will give customers a lasting positive impression of 961 Beer. Personal interaction with customers allows the company to suck up feedback on its beers and make adjustments. Customers are interested in supporting companies that heavily use Lebanese products. Particularly when the country is plagued by war, providing people the probability to work and be part of 931 Beer is a great way to pass water loyal customers.Advertising on social media is an effective way of stretchability the younger, trendier crowd that is more along the lines of who is frequenting the bars and drinking on a regular basis. Threats Clearly, the colossal threat to the companys survival is the place of its headquarters. Lebanon is routinely in wartimes, and has been through several wars with neighboring countries ever since 961 Beer began in 2006. Unfortunately, visitor levels to the 961 Bar decrease when conflict increases, which makes sales plummet. The competitive purlieu is monopolistic.The local beer market was monopolized by Almaza, which was acquired in 2002 by Heineken. In total, Heineken 3 controlled about 70% of the local beer market at the time 961 Beer was founded. With so much power, Heineken has pricing power that 961 Beer evictnot match. Other bars became more loath(p) to sell 961 Beer because the bar was seen as a threat to their own business. 961 Beer will need to befriend these bars and show them that the bars send word enjoy more success by joining 961 rather than going against them. galore(postnominal) customers are not accustomed to drinking anything besides commercially processed, fabricate beer from large competitors.This means that 961 Beer must educate their customers about the different types of beers and entice them to try 961 Beer. Evaluation Plan Expand outside of Lebanon Based on the analysis performed above, it is clear that 961 Beer must expand out of Beirut, Lebanon in allege to remain successful. While this will increase the encounter of lesser quality or require the use of non-Lebonese products, expansion is required to ensure the companys long-term success. Several steps must be taken before the expansion, all while 961 Beer continues to grow business in Beirut and manage bar operations.First, 961 Beer must address its capacity issues. 961 Beer seems to have had some difficulty in predicting the amount of beer it necessitate to brew in order to meet the growing demand. An analysis of their books will be helpful to take in a better idea of what demand will look same(p) in the future, accounting for their companys growth rate. Next, 961 Beer needs to fee d relationships with businesses in neighboring cities and countries. Bottling and shipping beer from Lebanon is unrealistic with high likelihood of war, so 961 Beer will need to establish microbreweries within these other locations.Quality can still be maintained by ensuring that Lebanese ingredients are still used in the brew, but costs can be recuperated by charging customers in those 4 countries a higher premium for the same beer. Finally, 961 Beer needs to join international beer festivals in other countries in order to accumulate planetary interest and to further increase recognition and demand among worldwide customers. There are several major risks that could undermine this plan for expansion. Clearly, the largest threat to 961 Beer is the ongoing threat of war in Lebanon and neighboring countries.Unfortunately, there is little to nothing that can be done to stop this threat. Without expanding into other countries, a war in Lebanon could wipe out the entire company. However , as discussed above, 961 Beer can minimize this risk by establishing separate microbreweries in other countries so that there is no single source where 961 Beer is brewed. Nonetheless, establishing other microbreweries increases another risk the risk of uneven and unequal quality. 961 Beer can lessen this risk by brewing its brewmasters select along with seasonal beers to appeal to customers in the new countries. 5.