case : carft beer

What is competition like in the craft beer industry? Which of the five competitive forces is strongest? Which is weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants?

Select "yes" for those statements that are accurate and choose "no" for those that are not.

a. The bargaining power of buyers is a strong competitive force in the craft beer industry.

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Yes

No

b. It is the larger producers that have greater negotiating power with distributers while small producers are disadvantaged by the three-tier system.

(Click to select)

Yes

No

c. The bargaining power and leverage of suppliers is a moderate competitive force.

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Yes

No

d. Raw materials such as cans and aluminum have diminished due to demand, and may impact smaller producers, who have strong negotiating power.

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Yes

No

e. The competition from substitutes varies dependent on the definition of consumer; it can be a weak or strong competitive force.

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Yes

No

f. Stricter regulations on both production and distribution would represent lower barriers.

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Yes

No

g. The threat of entry into the craft beer industry is relatively moderate.

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Yes

No

h. The rivalry among competing sellers is a strong competitive force and is likely to intensify.

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Yes

No

i. Craft beer producers competed primarily on the brand of craft, representing a higher quality, and at times unique taste, thus less price-based competition.

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Yes

No

j. Larger producers of beer, such as InBev and small craft breweries are not in direct competition with each other.

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Yes

No

k. Competitive pressure is also driven by the increasing number of local breweries, each attempting to occupy the local, craft brand for the geographic location.

(Click to select)

Yes

No