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Why Should New Belgium Decide When Opening A Third Brewery?

605 Words3 Pages

By New Belgium considering opening a third brewery, all the options needs to be accounted for and thought out carefully. The company needs to promote strategic planning in order to decide if opening a third brewery is a good business decision or not. A strategic plan helps identity the internal and external elements that can benefit or harm the company (Ferrell and Hartline, 2005, p. 29). Therefore, the strategic planning will help identify the major issues that need to be considered such as the pros and cons of the new brewery. The pros of opening a new facility are reasons why the brewery should open, so we will discuss those ideas first. The first pro to consider is that the product the brewery produces is very unique and different and that appeals to customers. …show more content…

The case study implies that the craft beer industry is doing well, but the industry is not reaching all the customers that it needs to. However, by the product New Belgium produces, it separates itself from other companies and provides a unique product that cannot be found just anywhere within the US creating the company to have a competitive advantage. Another pro to consider it that the customers love the product and in the beginning that is how New Belgium advertised was by word of mouth via their satisfied customers. Without a product that is appealing and satisfying to customers, a company simply could not succeed. A study conducted showed that a strong correlation exists between customer satisfaction and the willingness of the customer to promote the product by word of mouth in the end helping the company sell their products more successfully (Confente and Russo, 2015). Therefore, by New Belgium promoting their company as a down to earth company and their wonderful product helps enhance customer satisfaction which will lead to an increase in

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