Asahi Breweries, Ltd Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Asahi Breweries, Ltd Case Solution

When the Asahi breweries will start selling such as the dry beer brand the sales of the company will increase, and it was considered the biggest threat from the large competitors that are leading the market and possess the abundant resources to fight, As Kirin is the biggest competitor of Asahi breweries. Other competitors can also enter into the market and can snatch the market share from Asahi breweries, so the company needs to work effectively at its 100% growth in order to gain full market share in dry beer and maintain a loyal customer base. Through the promotional activities, Asahi breweries can meet the desired level of growth and sales as the company increased sales by 9.7% in the previous year through promotions and improving quality.

If a firm will not operate at 49% capacity effectively and achieve expected or estimated market share, with a 0% growth plan, the firm will show losing in the income statement, so the firm needs to maintain the estimated market share in order to maintain its competitive position and to take advantage of first-mover so that no one can replicate, and to keep its demand intact. According to

the assumed growth plan in 1990, if the firm will not operate at 49% capacity, it would face losses in operating profit if operating at 49% capacity and sales 460 billion yen, so the market share that the company will achieve is 20%. If the company is implementing a 25% growth plan, and sales 563 billion yen, so the company will face 54 billion yen losses, approximately 10% loss, and the market share that company will maintain will be 22.8%.if the company will implement a 50% growth plan in 1990, will face losses in operating income of 29 billion yen, and approximately 4% loss, even if sales in billions of yens in 665. Even at a 75% growth plan company will face operating losses, and the market share that the company will be able to retain will be 27.8% only. So at a 100% growth plan when the company will operate at 93% capacity will be able to earn profit and desired market share.

When the recommended growth strategy is strategically analyzed, it becomes evident that this is a really strong and capable plan that will help the company is continuing to grow gradually in the future. As stated in the case, Japanese customers' tastes change in a relatively short period, hence changes in taste toward dry beer among Japanese consumers opened up new avenues for expansion and gave enormous market prospects. Below is the conclusion of the overall decision.

Conclusion:

In the dry beer niche, Asahi had the advantage of being the first to market. As a result, they had a huge advantage over their competition. The revenues earned as a result of this strategy were significant, allowing the company to remain financially competitive. At this moment, the company was serving all of Japan's beer market divisions. One of the organization's strengths was employee motivation, which contributed to the firm's success. This employees motivation will also help the company in successful future growth and expansion. Along with that financial position will also support this expansion..............................

Asahi Breweries, Ltd Case Solution

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