CASE STUDY

The competitive structure of the Beer Industry in United States using Porter’s Five Forces Model is very
tight. Each of them is really trying to get the best profit of their own business. But when the wine and
spirit came in the picture the consumption increases. On the other hand, the brewers were being
dwindled because of expensive national advertising campaigns in boosting their company’s profile. The
mass market brewer down but one of them is still the most consistent performer. The industry’s
competition revolves around aggressive pricing, brand loyalty, distribution channel, and national
advertising spending. Industry’s has changed in the number of ways because the consumption of beer in
the United States has been gradually declining [even though consumption of premium beer has been
increasing.]In that case, we can say that the rivalry among established companies Anheuser Busch, SAB-
Miller, and Molson Coors]are intense since in a consolidated industry any changes in each other’s prices
or offers to customer value in their product may increase the rivalry among the companies.