Brown Forman Corporation And The Distilleries Industry Research Paper
Johnson & Wales University
ScholarsArchive@JWU
MBA Student Scholarship
The Alan Shawn Feinstein Graduate School
6-1-2013
Brown-Forman Corporation and the Distilleries
Industry
Keely J. Higbie
Johnson & Wales University - Providence, kjh116@wildcats.jwu.edu
Follow this and additional works at: http://scholarsarchive.jwu.edu/mba_student
Part of the Business Administration, Management, and Operations Commons
Repository Citation
Higbie, Keely J., "Brown-Forman Corporation and the Distilleries Industry" (2013). MBA Student Scholarship. Paper 21. http://scholarsarchive.jwu.edu/mba_student/21 This Research Paper is brought to you for free and open access by the The Alan Shawn Feinstein Graduate School at ScholarsArchive@JWU. …show more content…
To help businesses manage these changes within the industry, it is important for them to identify the industry’s driving forces, determine how these forces are impacting the attractiveness of the industry, and build strategies to help mitigate the impacts of changes in these forces (Thompson et al, 2012, p. 72). Many changes tend to originate in the macro environment, but some can originate from the immediate industry environment as well. Drivers of change within the distilleries industry include: (a) increasing globalization, (b) product and marketing innovation, (c) regulatory influences and government policy change, and (d) changing societal concerns and attitudes (Thompson et at, 2012, pp. 73-75).
Increasing globalization. While all of the industry’s major competitors are distributing their products in markets around the world, each is also strategizing to expand into other profitable markets. Most companies have observed an increase in the percentage of their sales
BROWN-FORMAN CORPORATION …show more content…
Alcohol tends to be a socially and culturally controversial product. While it has become significantly more acceptable since Prohibition, there are still some activists who advertise and promote the negative effects of alcohol consumption like underage drinking, drinking and driving, and alcohol dependence. These concerns are usually elevated after arrests, major accidents, or the loss of loved ones.
Impacts to internal forces. The change in societal concerns and attitudes has the potential to weaken entry threats due to the uncertain industry outlook caused by societal health and safety concerns. It can also impact the industry growth rate, which can strengthen rivalry amongst competitors and increase buyer bargaining power.
Understanding these industry drivers will help competitors to develop more effective strategies for managing the potential impacts caused by changes in these factors.
Key Success Factors
It is also important for Brown-Forman and other distilleries to understand the competitive factors that are critical to their “ability to survive and prosper” in the industry (Thompson et
ScholarsArchive@JWU
MBA Student Scholarship
The Alan Shawn Feinstein Graduate School
6-1-2013
Brown-Forman Corporation and the Distilleries
Industry
Keely J. Higbie
Johnson & Wales University - Providence, kjh116@wildcats.jwu.edu
Follow this and additional works at: http://scholarsarchive.jwu.edu/mba_student
Part of the Business Administration, Management, and Operations Commons
Repository Citation
Higbie, Keely J., "Brown-Forman Corporation and the Distilleries Industry" (2013). MBA Student Scholarship. Paper 21. http://scholarsarchive.jwu.edu/mba_student/21 This Research Paper is brought to you for free and open access by the The Alan Shawn Feinstein Graduate School at ScholarsArchive@JWU. …show more content…
To help businesses manage these changes within the industry, it is important for them to identify the industry’s driving forces, determine how these forces are impacting the attractiveness of the industry, and build strategies to help mitigate the impacts of changes in these forces (Thompson et al, 2012, p. 72). Many changes tend to originate in the macro environment, but some can originate from the immediate industry environment as well. Drivers of change within the distilleries industry include: (a) increasing globalization, (b) product and marketing innovation, (c) regulatory influences and government policy change, and (d) changing societal concerns and attitudes (Thompson et at, 2012, pp. 73-75).
Increasing globalization. While all of the industry’s major competitors are distributing their products in markets around the world, each is also strategizing to expand into other profitable markets. Most companies have observed an increase in the percentage of their sales
BROWN-FORMAN CORPORATION …show more content…
Alcohol tends to be a socially and culturally controversial product. While it has become significantly more acceptable since Prohibition, there are still some activists who advertise and promote the negative effects of alcohol consumption like underage drinking, drinking and driving, and alcohol dependence. These concerns are usually elevated after arrests, major accidents, or the loss of loved ones.
Impacts to internal forces. The change in societal concerns and attitudes has the potential to weaken entry threats due to the uncertain industry outlook caused by societal health and safety concerns. It can also impact the industry growth rate, which can strengthen rivalry amongst competitors and increase buyer bargaining power.
Understanding these industry drivers will help competitors to develop more effective strategies for managing the potential impacts caused by changes in these factors.
Key Success Factors
It is also important for Brown-Forman and other distilleries to understand the competitive factors that are critical to their “ability to survive and prosper” in the industry (Thompson et