Based on the strategic group map in Concepts Connections 31

Based on the strategic group map in Concepts & Connections 3.1, who are Yuengling & Son’s closest competitors? Between which two strategic groups is competition the strongest? Why do you think no beer producers are positioned in the lower-left corner of the map? Which company/strategic group faces the weakest competition from the members of other strategic groups?

Microbreweries The U.S. Beer Industry Boston Beer Yuengling & Son High MillerCoors Anheuser-Busch Inbev Low Narrow Broad Pabst Geographic Market Scope

Solution

If we observe the given market map, it can be find that the closest competitors to Yuenging are both Microbeweries and Boston beers. Of the specifications and the market positioning is different of these three different market. But these three are standing at the nearest position in the market.

Beer is one of the regular product in US, and the producers who want to produce this product, wants to enter into large market. Even a small share from each segment will helps them to increase their market share in respective aspects. WIth this reason only, no company is stands at the left side lowest positon in the grid.

Micro beweries is the firm which is having lowest competition in the given market. They have many brands, offering at lower prices and focused and segmented market for each brand.