Regulation - Competition - And Assessment Answer

ating a strong brand which is utilized in making quality craft beer (Xie, Batra & Peng, 2015)

 Breewer is used in the fermentation process while making beer; it is the longest process in brewing which is responsible for adding the characteristics of flavour in the beer. A whole lot of beer can be simply wasted due to incorrect temperature control, with brewer this complexity vanishes. Breewer can be seen as the future of quality beer fermentation which is much ahead of its times, easily programmable and creates a desired fermentation temperature profile which increases its quality of product offering (Arnette & Brewer, 2017).

Breewer is easily accessible via android and ios which makes it cover the entire ecosystem for the Breewers. Further the target demographics make the product within the reach of its consumers. The company is pushing the product as the smart, intelligent, machine learning device which provides quality craft beer with all the factors of production in control.

Intellectual Property

Safeguarding the rights of IP becomes fairly important when the product is a big contributor and a breakthrough product in making high quality craft beer. The final product gets into the hands of consumers after three stages of testing the product in controlled conditions; the final results of Breewer are implemented into the programming. Registration of Patent, trademark and safeguarding them from other competitors helps to keep its competitive edge over its customers (Salelaw & Singh, 2015).

Customer service is a major attribute of determining the strength of any product and that of a company. Breewer which is a high tech product with all its quality control features is at the pinnacle of customer service. Not only the device automatically sends alerts, reminders and mail to its consumers when the product is ready, daily reports, or alerts when something is wrong. Besides this the company is active on social media and website, uses a customer feedback process to identify and challenges the customer might be facing as a way to ensure a great customer service experience for its customers(Friske & Zachary, 2017).

Porter 5 force model is an important framework which helps in determining the market attractiveness and profitability of the industry in accordance with the 5 forces of Porter (Dobbs, 2014).

Competitive rivalry sets out the tone for the competition in the industry, thus is a very important force for consideration .All the other products in the markets have less sophistication and are not able to control the temperature variation in the beer manufacturing process. Breewer is a unique offering in itself coupled up with machine learning and automation to ensure high quality product for the home brewery. The competitive rivalry can be said as low due to its unique offering and proposition. STC 100 is the most common unit used by Breewer and is easily replaceable by Breewer.

Bargaining Power of Suppliers

The bargaining power of suppliers is low with Breewer as it’s a product which is designed and created to work in the competitive times, and uses the modern day technology infrastructure to support its functionalities. It is easily accessible via application on android and IOS, it has a very limited control from the suppliers, because most of the components have large suppliers, thus reducing the bargaining power of suppliers. Moreover, the unique product in the market has larger domination over suppliers.

Breewer is a quality product made for home brewers; ICT 100 is the only other unit which is available for the consumers. The limited functionality of ICT 100 makes it easily replaceable by Breewer which gives plethora of functionality highly useful for the home brewers. The demographic of the Home brewer is susceptible to online advertising thus making the Breewer an easy product to buy for the consumers. The target demographics of Home brewer are 99% males who want to control the beer fermentation process easily via app and able to make quality craft beer. Due to inability to compete with a high end, technologically advanced and easy to use product, bargaining power of consumers is high. This is also one of the reasons for a moderately higher pricing of the product.

In the present day, Breewer does not have any threat from any of the existing product. Future innovation can only keep the product to be the top pick for the home brewers. The substitute to the product can be changes in the process of mashing and cooling before the process of fermentation to lessen the utility of Breewer. As of now, the threat of substitute product or services is extremely low.

Threat of New Entrant

The cost of creating the product is low; however it requires a sizable amount spent towards Research and development and its marketing and promotions. Breewer has patented its product and all other processes and trademarks are protected. This leaves very little scope for any company to copy the mechanism and functioning of Breewer. However, a moderate investment in creating the product makes the industry (moderate) susceptible for new entrant. The product has to be out of the box thinking to replace high tech and consumer friendly Breewer out of the competition.

There are over 1.1 million home brewers only in the USA and every year there is a 10% rise in the existing number, this shows that the market is huge and highly attractive. The product is priced at a higher price due to its unique market offering and position. All the factors mentioned above reflect that the industry is highly attractive and profitable; it will see a surge in the coming years as well.

References

Arnette, A. and Brewer, B., 2017. The influence of strategy and concurrent engineering on design for procurement. The International Journal of Logistics Management, 28(2), pp.531-554.

Barney, J.B., 2014. Gaining and sustaining competitive advantage. Pearson higher ed.

Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.

Friske, W. and Zachary, M.A., 2017. Regulation, competition, and economic growth: A resource-advantage theory perspective. Journal of Research in Marketing and Entrepreneurship, 19(1), pp.26-41.

Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

Salelaw, G. and Singh, A., 2015. Measuring consumer-based brand equity in the ethiopian brewery industry. ZENITH International Journal of Multidisciplinary Research, 5(12), pp.74-98.

Xie, Y., Batra, R. and Peng, S., 2015. An extended model of preference formation between global and local brands: The roles of identity expressiveness, trust, and affect. Journal of International Marketing, 23(1), pp.50-71.