Why did Coors's competitive position in the US brewing industry deteriorate between the mid '70s and the mid '80s? What must Coors do to improve its future prospects?
Adolph Coors was a successful businessman who was born on February 4, 1847 in Germany.
At very young age Adolph Coors lost his parents and around 1866 he left Germany and came to the United States. Back in his country Coors used to work in the Winker’s Brewery and to the U.S. with a dream to open his own Brewery. In 1869 Coors was hired as a foreman in the Stinger’s Brewery. He worked very hard and learned a lot about brewing industry.
One day, during a walk Coors found a cool spring of crystal pure water. He knew that pure water is the key ingredient of a perfect beer. Finally, he found the right location for his brewery. This was the beginning of Coors’s successful career. Coors was very successful in his business and he was expending it year to year. In 1914, the Volstead Act was passed, which prohibited the sale of alcoholic beverages in the U.S. This Act had a negative impact on all such businesses and many businesses closed down. However, Coors was smart and led his company to other activities and the brewery survived. After several years the prohibition Act ended and Coors started his Brewery again and produced more than 136.000 barrels of beer. By 1955 production had climbed to over one million barrels a year. Coors strategy of reinvesting the profits in the company helped him to expend the brewery more and more. He also promoted new ideas and improved the quality of his beer. This strategy also helped him to remain successful and move ahead. Another booming strategy was constant introduction of innovative products and practices as well as new brewing technology. The company continued growing and by 1974 they had a gain of 12.3 million barrels. However, in 1975 because of quality concern Coors posted unusual advertisement “please do not buy our beer”. As a result, the volume of sales had...