Running head: 49TH STATE BREWERY COMPANY: ROBUST INTERNAL ANALYSIS 1
Robustinternal analysis of the 49thState Brewery Company
The49thState Brewing Company is a locally owned and operated brewpub withlocations in Healy and Anchorage in Alaska State. Alaska offersaward-winning beers and quality food using their own products. Itsmarket includes local people and tourists. This research aims atanalyzing the internal environment of the company. This internalanalysis includes the brewer’s resources, core competencies,competitive analysis, and capabilities.
Internalanalysis is the process of identifying and evaluating anorganization’s specific characteristics, including its resources,capabilities and core competencies ("InternalAnalysis: Your Competitive Advantage", 2016).
Resourcesare the assets that an organization has for carrying out whateverwork, activities, and processes relative to its business definition,mission, goals, and objectives. These include a firm’s assets,including people (workers and management) and the value of its brand.This company operates mainly in two places, Healy and Anchorage inAlaska State. Healy is a convenient place for selling beer because oftourists while Anchorage, being the largest city in Alaska, is themeeting point for locals.Also located at the 49thState Brewing Company in Healy, is the bus used in filming the movie“Into the Wild.”The Anchorage does not have a free shuttle like the counterpart town,but their location is ideal for locals with cars, and tourists thatare likely staying at hotels within walking distance. There is streetparking available and a large pay-to-park lot directly across fromthe brewery("InternalAnalysis: Your Competitive Advantage", 2016).
The49thstate brewery company has the strong financial capability. This isevidenced by the ability to open a second location in Anchorage so asto get extra space for storage. The company is also able to importraw materials from as far as Europe. The brewing equipment which thecompany uses is obtained from Premier Stainless Systems, a companythat sells complete breweries, tanks, and keg washers. The equipmentis considered some of the most innovative brewing technologyavailable in the United States. The firm is inspired by homegrownAlaskan flavors and products which attract the local population aswell as tourists. It also asks vendors to distribute its products tothe market.
Anorganizational capability refers to the way its people and systemswork together. A company’s culture is defined by how managementfosters talent, mindset, and collaboration. Social and technicalcompetencies and capabilities intersect in different ways.Organization capabilities such as talent management, collaboration,and accountability interact with and bring together all parts of thecompany. Capability management uses the organization’s customervalue proposition to set goals for capabilities based on valuecontribution. ("CompanyCapabilities", 2016)
Capabilityrepresents the capacity to deploy the resources that have beenpurposely integrated to achieve the desired end state. The 49thstate brewery company capabilities are discussed as follows: The firmhas been able to produce a beer using Alaskan products which meanthat it tastes ‘Alaskan’. The company also uses equipment whichis trusted for high quality not only in Alaskan, but the rest of theworld. For Healy area, customers are offered with free bus rides towhere the brewery is located. The firm did not face many difficultiesin raising startup capital as most competitors faced financialdifficulties. This means it is a step ahead of them in terms ofbusiness expansion and production("CompanyCapabilities", 2016).
The49thstate brewery company’s core competencies distinguish it fromcompetitors and reflect its character. The firm’s popularityand high profits at their Healy location curtail the threat of newentrants. The company also emphasizes on the production of beer inline with local taste to create unique products which help checkcompetitors from outside Alaska.
Competitiveadvantage is the favorable position an organization seeks in order tobe more profitable than its competitors. It involves communicating agreater perceived value to a target market than competitors canprovide, for example, higher quality, lowering prices and increasingmarketing efforts ("Whatis competitive advantage? – Definition from WhatIs.com", 2016).The four criteria of sustainable competitive advantage are valuableand rare capabilities, costly to imitate capabilities andnon-substitutable capabilities which 49thstate brewery company possesses.
InAnchorage branch, the company has only two direct competitors,Glacier Brewhouse and Broken Tooth Brewing, since others have beenregistered as distributors which limit their operational hours.However, the firm needs to differentiate itself from thesecompetitors. In Healy, the company is the only brewer thus iteffectively controls the market. The firm’s strengths includeinnovative products which draw customers, availability of its beer inother US states and low overhead costs, meaning higher profitsmargins ("InternalAnalysis: Your Competitive Advantage", 2016).
CompanyCapabilities.(2016). Boundless.Retrieved 9 November 2016, fromhttps://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/the-marketing-environment-3/internal-factors-30/company-capabilities-159-4045/
InternalAnalysis: Your Competitive Advantage.(2016). InternationalBusiness Strategies, Solutions, and Technologies.Retrieved 9 November 2016, fromhttp://trinitywebworks.com/blog/internal-analysis-your-competitive-advantage.html
Whatis competitive advantage? – Definition from WhatIs.com.(2016). SearchCIO.Retrieved 9 November 2016, fromhttp://searchcio.techtarget.com/definition/competitive-advantage