30.3k views
1 vote
Describe the competitive strategy of Boston Beer succinctly according to Michael Porter's framework.

Lower Cost - Broad Target

Lower Cost - Narrow Target

Differentiation - Broad Target

Differentiation - Narrow Target

Do you think it would be a good idea for Boston Beer to switch to one of the other business strategies? Explain your reasoning and provide some facts or factors that you considered in your decision.

User Remudada
by
8.4k points

1 Answer

2 votes

Final answer:

Boston Beer adopts the Differentiation - Narrow Target competitive strategy according to Michael Porter's framework. Switching strategies might harm their brand image and competitive advantage. Their current strategy aligns with their core competency and market leadership.

Step-by-step explanation:

According to Michael Porter's framework, Boston Beer adopts the Differentiation - Narrow Target competitive strategy. This means that Boston Beer focuses on differentiating itself from competitors by targeting a specific niche market. They emphasize unique product features and qualities to attract a select customer segment.

Considering Boston Beer's extensive success in the craft beer industry as the owner of the Sam Adams brand, it would not be advisable for them to switch to another business strategy. Boston Beer has built a strong reputation for its distinct flavors and high-quality products, which has allowed them to establish a loyal and dedicated customer base. Switching to another strategy may dilute their brand image and jeopardize their competitive advantage.

Furthermore, Boston Beer's Differentiation - Narrow Target strategy aligns well with their core competency in producing craft beers, enabling them to focus on their strengths and maintain their position as a market leader in the craft beer market.

User Darnmason
by
8.1k points