What Are The Problems Faced By Coors Company?
Adolph Coors Company was founded in 1873 in Golden Colorado by Adolph Coors, a German American brewer. Coors joined with another German immigrant, Jacob Schueler, but later bought out his partner in 1880 and became the sole owner of the brewery. Even through prohibition, the company managed to stay intact by expanding into other ventures such as Herold Porcelain, malted milk and a near beer production facility. By the end of prohibition, the company was one of few breweries that survived. For most of its history, Coors has been a regional product that marketed to the American west. In the mid-1980s, the company extended distribution to cover the nation. Over the years, Coors has continued to be a successful company where many others have failed.
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The key is to improve or create distribution networks in some way. Even though this would be very expensive, in the long run it would be very beneficial for the company. The first option would be to outsource distribution. This would remove a good deal of the distribution expenses from Coors and free up several of their resources for other capacities. Examples of companies that Coors could outsource to are Swift Transportation or J.B. Hunt. Another choice is to build more production plants across the country. Doing this would decrease the median shipping distance which would lower expenses. This option is also positive because the products would be sent to wholesalers more quickly extending the wholesaler shelf-life. Lastly, Coors could build packaging plants which would allow them to ship to the eastern side of the country more efficiently. Each of these have the possibility of increasing …show more content…
This would allow for them to distribute nationally in a more efficient manner without diminishing their brand image. This would also decrease distribution costs while still keeping control within the company. By keeping one production plant in Golden, Colorado, the company is able to continue using the resources and processes that give Coors’ beer its unique taste. Building packing plants gives them the opportunity to increase their distribution nationally without increasing their costs. This option would expand their capabilities and improve their success
The key is to improve or create distribution networks in some way. Even though this would be very expensive, in the long run it would be very beneficial for the company. The first option would be to outsource distribution. This would remove a good deal of the distribution expenses from Coors and free up several of their resources for other capacities. Examples of companies that Coors could outsource to are Swift Transportation or J.B. Hunt. Another choice is to build more production plants across the country. Doing this would decrease the median shipping distance which would lower expenses. This option is also positive because the products would be sent to wholesalers more quickly extending the wholesaler shelf-life. Lastly, Coors could build packaging plants which would allow them to ship to the eastern side of the country more efficiently. Each of these have the possibility of increasing …show more content…
This would allow for them to distribute nationally in a more efficient manner without diminishing their brand image. This would also decrease distribution costs while still keeping control within the company. By keeping one production plant in Golden, Colorado, the company is able to continue using the resources and processes that give Coors’ beer its unique taste. Building packing plants gives them the opportunity to increase their distribution nationally without increasing their costs. This option would expand their capabilities and improve their success