1. Adolph Coors in the Brewing Industry
Take-aways

2. Internal Fit A strategy should fit internally
Activities of the firm should link in a complementary way with one another
This requires a cross-functional perspective
An activity map is an important tool to assess the internal fit of a company’s strategy

3. An Activity Map Procurement Manufacturing Marketing Distribution Other
Plant
One
Regional
Scale
Product
Distribution
One
Intermediate
Location
Price
Distribution
Backward
Controls
Integration
Cans
Other inputs
High
Limited
Capacity
Advertising
Utilization
Other
Product
All-
Unique Process
• Attributes
Equity •
Asset-Intensive
• Rocky Mount.
Finance •
Long
Image •
Unpasteurized
Family
Control
Confronta-
tional
Manag.

4. External Fit A strategy must also fit externally
A company’s strategy needs to make sense in the “terrain” in which they are operating
Comparative financial statement analysis is a key tool for this type of assessment
Identify the key drivers of change in making comparisons

5. Coors’ Strategy 1970s: Product Advantage vs Competitive Advantage
Scale and Centralization
Missed opportunities
Static view of rivals and opportunities
1980s: Constrained by Earlier Choices
Reactive strategy
Little adaptation

6. Operating Performance Comparison, Coors vs. Anheuser Busch

7. Coors Update 1985 — Miller introduces Genuine Draft August 1
1986 — Agreement with Asahi Breweries in Tokyo—to brew and distribute Coors in Japan
1987 — Shenandoah packaging facility opened
1987 — Agreement with AFL-CIO ends 10-year boycott against Coors
1988 — Record volume moves Coors from #5 in the industry to #4
1989 — Introduced Keystone (a popular beer that cannibalized Coors’ premium sales)

8. Coors Update 1990 — Coors rises to #3 among US brewers
1991 — Entered 50th state (Indiana) and began exporting to Puerto Rico, Guam and Cayman Islands
1992 — Spun off nonbrewing assets including diversified technology business
1993 — New president and COO hires from Frito-Lay; first non-Coors family member to be president
1994 — Purchased brewery in Spain
1996 — Anheuser Busch has captured 48% of US beer sales

9. Coors Performance Post 1985
(end 2003)
Coors + 52%
(end 1995)

10. Coors Performance Post 1985 relative to Anheuser Busch