Competitor Analysis Table D: Liquor and Beer License Estimates for Market Area for 1990-1995 Type of License199019911992199319941995 All beverages330340350365385405 Retail beer and wine556060656570 Off premise beer only210220225230235245 Veterans beer and liquor 121213131212 Fraternal202020202020 Resort beer and liquor252531323436 Table D above denotes that the number of beer and liquor licenses in the market area is anticipated to boost increasingly from 1990 to 1995. This gives you an idea about the competition that Coors will experience.
One can uphold that from the data in Table D, it is demonstrative that Coors Beers has a considerable amount of competition. Therefore Coors Beers ought to gauge the disposition and strength of competitive forces operating in the market area. Coors Beers should consider the fact that since there is a progressive increase of all beverages licenses from 1990 to 1995, could possible mean that competition from new entrants could pose a threat as this would increase competition.
Also from this increase, we further infer that there are possibly reasonable entrant barriers to trade. This means that the market area will further attract new entrants. Table D also has a listing of the different substitutes available in the market area. There are a considerable number of substitutes available that a consumer can choose from. Without hesitation, Coors Beers will have to consider is, whether or not these substitutes are sturdy enough substitutes for their product and ensure that consumers do not switch to the substitutes.
As there are many substitutes available consumers can switch to those anytime when not satisfied with Coors product. Coors must also be aware of the fact that substitutes pose the most threat to their productivity. Coors must ensure by all means possible not to drop quality standards and service standard. One of the requirements for Coors would be to find the correct distribution channels to guarantee that the Coors products are well distributed in the target market which will permit them to realize utmost productivity from sales.