961 Beer: Launching a Lebanese Brewing Company

961 Beer: Launching a Lebanese Brewing Company

The story of the 961 Beer is a perfect example of how sheer determination stubbornness and the ability to not give up can make a business succeed and survive. Looking at the history of the company, 961 Beer has gone through ups and downs to achieve its peak. Currently, the company is facing several challenges, and it must make a strategic decision to help accomplish an immediate rise in the market to improve its competitive advantage. About the current situation in the market, the company cannot be able to gain its strength in the market or may take too long to do so. As a result, 961 Beer should consolidate with another to gain a competitive advantage in a seemingly competitive market. With the cutthroat competition to the economic necessity, Hajja should consider merging or acquisition to reconcile their bottom lines with the financial realities of the investors, employees, and customers. A successful consolidation would help improve customer service, improve its competitive advantage, and grow its market share. It is essential to note that over time, a series of successful mergers can lead to significant development of large, powerful, multinational organizations. Consolidation will enable 961 Beer to expand its reach and leverage its present customer’s bases to grow the business beyond where it was previously. With the current trends in the market, the consolidation process would enable 961 Beer’s functions to be frequently re-engineered, and systems can be deployed to make its services more efficient. The number of customers visiting the bar reduced tremendously due to the wake of new political trouble. The environment was therefore not conducive for the growth of the company. Consolidating would thus enable 961 Beer to become sufficiently large enough to serve its customers increasing its market share, which would, in turn, lead to higher sales and increased profits. An increase in the size of the market would provide an opportunity for the company to expand its business line, leading to increased sales and profits.

Additionally, by consolidating the business, Hajja will see the company grow towards being an industry leader. With a bigger size, the company would be able to develop a regional or national brand and establish a higher purchasing power. Buying out or merging with a rival company reduces the level of competition in the market and the number of customers for industry suppliers. The merged company, therefore, gets more negotiating powers to get better deals with the suppliers.

What kind of strategy would allow the company to expand and to increase its customer base without compromising on quality and the values that made 961 Beer what it was?

For the company to expand, it should consider the strategy of innovation, improving customer relations, and acquiring a competitor company. Innovation can increase its market share. If the company brings new technologies that its competitors are yet to offer, they will make more products to meet the demands of the market. The consumers become loyal to the company’s products, adding to its market share and increasing their competitive advantage. By improving customer relations, the company would be able to protect the present market share from shifting when a new product from a competitor reaches the market. When one customer is satisfied with the taste of the beer, he/she frequently talk of the positive experience to friends and relatives, who then become new customers. Expanding market share through word of mouth can increase the revenue of the company without associated expenses in marketing. It is also important to note that acquiring a competitor has the potential of growing market share. Acquisition of a company would enable the company to tap into the newly acquired organization’s existing customer base and reduces competition.

961 Beer managed to be where it was because of its fascinating story that tells entrepreneurs that with hard work and determination, they can make their small business ideas succeed. Several factors contributed to the success of the company, some resulting from internal and external environments. 961 Beer could produce various beer styles and heavily depended on Lebanese products to brew its products. This gave the 961 Beer a unique taste and advantage over its competitors. The customers were inspired to try something new with the company. Another strength that made the company reach where it was is the marketing strategies. The company coined the catching phrase “Are you resistant to change?” that was implemented at a time when the country was going through effects of war. It is essential to note that “change” was an idea mostly popular in a subjugated country, and associating themselves with such a concept enabled the company to appeal to a large number of potential customers. The packaging was purposely “under-designed” and was supposed to be viewed as pure, simple, and natural to attract customers with interest in the aesthetic features. The pub is also located strategically in the bustling nightlife scene of Beirut. This made the brand identity and brand loyalty of 961 Beer among new customers to grow. Like many businesses, 961 Beer was begunby founders who had little idea of what they were supposed to do. Additionally, they lacked enough financial support. These weaknesses made them struggle for much of their life. The intense competition in the market was a threat to the company. This was made worse by the presence of some well-established companies in the market.

 

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