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Flevy Management Insights Case Study
Global Expansion Strategy for Craft Brewery in the Beverage Industry


There are countless scenarios that require Vision Statement. Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Vision Statement to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, best practices, and other tools developed from past client work. Let us analyze the following scenario.

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Consider this scenario: A renowned craft brewery, facing a saturated domestic market, seeks to redefine its vision statement and market position.

It has experienced a 5% decline in domestic sales over the past two years due to increased competition and changing consumer preferences. Additionally, the brewery confronts internal challenges such as limited production capacity and inefficiencies in its supply chain. The primary strategic objective of the organization is to identify and enter new international markets, thereby diversifying its consumer base and reigniting sales growth.



This craft brewery, while celebrated for its innovative and high-quality products, has been significantly impacted by a fiercely competitive and maturing domestic market. The root issues appear to stem from the organization's reliance on traditional sales channels and its slow response to rapidly evolving consumer trends toward healthier and more diverse beverage options. The leadership team is concerned that without a strategic pivot, the brewery may continue to lose relevance and market share.

Industry Analysis

The global craft beer market is witnessing robust growth, driven by a rising consumer preference for artisanal and premium beer products. However, this growth is not without its challenges.

Understanding the competitive landscape is crucial:

  • Internal Rivalry: The craft beer industry is characterized by intense competition, with a significant number of microbreweries and craft beer brands vying for market share.
  • Supplier Power: Suppliers of unique ingredients and brewing materials hold moderate power, given the craft brewery's dependence on high-quality inputs to differentiate their products.
  • Buyer Power: With the proliferation of craft beers, buyer power is high as consumers have a wide array of choices and exhibit low brand loyalty.
  • Threat of New Entrants: The barrier to entry is relatively low, leading to a continuous influx of new entrants adding to the competitive pressure.
  • Threat of Substitutes: The threat of substitutes is moderate but growing, with non-alcoholic beverages and other craft beverages (such as ciders) gaining popularity.

Emergent industry trends include:

  • Increasing consumer demand for low-alcohol and non-alcoholic craft beer options, presenting both a challenge and an opportunity for traditional craft brewers.
  • Expansion of direct-to-consumer sales channels, enabled by digital platforms, which could mitigate the impact of declining on-premise sales.
  • The rise of sustainability and locally sourced ingredients as key factors influencing consumer purchase decisions.

A PEST analysis reveals that technological advancements, changing social attitudes towards alcohol consumption, and evolving regulatory environments across different geographies could significantly impact market dynamics.

Learn more about PEST Competitive Landscape Industry Analysis

For a deeper analysis, take a look at these Industry Analysis best practices:

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Internal Assessment

The brewery has established a strong brand identity and loyal customer base within its domestic market, yet it faces operational challenges and capacity limitations that hinder its ability to scale.

A MOST Analysis indicates that the brewery's mission to deliver high-quality, innovative craft beers aligns with market opportunities in international markets. However, achieving this requires addressing operational inefficiencies and expanding production capabilities.

An Array Analysis highlights the need for diversifying the product lineup to include low-alcohol and non-alcoholic options, leveraging digital sales channels, and enhancing supply chain resilience.

The 4 Actions Framework Analysis suggests eliminating reliance on traditional distribution channels, reducing complexity in the supply chain, raising brand awareness in new markets, and creating unique customer experiences as key strategic moves.

Learn more about Customer Experience Supply Chain

Strategic Initiatives

  • Revise Vision Statement to Reflect Global Ambitions: Articulate a new vision statement that captures the brewery's commitment to becoming a leader in the global craft beer market. This initiative aims to realign the organization's strategic focus and inspire stakeholders. It will necessitate a comprehensive review and update of internal communication, marketing materials, and strategic planning documents.
  • Market Entry Strategy for Asia-Pacific Region: Identify and enter two high-growth markets in the Asia-Pacific region within the next 18 months , aiming to establish a foothold and begin scaling operations. This initiative seeks to capitalize on emerging consumer trends favoring craft beer, expected to drive significant revenue growth. Required resources include market research, local partnerships, and marketing investments.
  • Digital Transformation and Direct-to-Consumer Sales: Develop an e-commerce platform and digital marketing strategy to enhance direct-to-consumer sales capabilities. This initiative focuses on creating value through personalized customer engagement and streamlined distribution, expected to improve margins and customer loyalty. Investment in digital technologies and marketing expertise will be critical.

Learn more about Digital Marketing Strategy Strategic Planning Market Research

Vision Statement Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Measurement is the first step that leads to control and eventually to improvement.
     – H. James Harrington

  • International Market Share Growth: Tracking market share in new regions will indicate the success of global expansion efforts.
  • E-commerce Sales Growth: An increase in online sales will reflect the effectiveness of the digital transformation initiative.
  • Production Volume: Monitoring production capacity utilization will help assess improvements in operational efficiency.

These KPIs offer insights into the strategic plan's impact on the brewery's global presence, digital capabilities, and operational performance. They will guide iterative strategy adjustments and resource allocation to ensure alignment with the overall strategic objectives.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

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Stakeholder Management

Successful implementation of strategic initiatives will depend on the active involvement and support of both internal and external stakeholders.

  • Senior Leadership Team: Responsible for setting strategic direction and ensuring resource allocation aligns with strategic initiatives.
  • Marketing Department: Plays a crucial role in developing and executing market entry and digital marketing strategies.
  • Production Team: Critical for optimizing production processes and scaling capacity to meet international demand.
  • Supply Chain Partners: Essential for ensuring the availability of high-quality ingredients and efficient distribution.
  • Local Distributors in Target Markets: Key to establishing market presence and navigating regulatory environments.

We've only identified the primary stakeholder groups above. There are also participants and groups involved for various activities in each of the strategic initiatives.

Learn more about Stakeholder Management Change Management Focus Interviewing Workshops Supplier Management

Vision Statement Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Vision Statement. These resources below were developed by management consulting firms and Vision Statement subject matter experts.

Vision Statement Deliverables

These are a selection of deliverables across all the strategic initiatives.

  • Global Market Entry Strategy Plan (PPT)
  • Digital Transformation Roadmap (PPT)
  • Direct-to-Consumer E-commerce Platform Development Plan (PPT)
  • Revised Vision Statement Document (PPT)
  • Operational Efficiency Improvement Framework (PPT)

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Revise Vision Statement to Reflect Global Ambitions

The strategic initiative to revise the vision statement and reflect global ambitions was guided by the Core Competence Framework, originally introduced by C.K. Prahalad and Gary Hamel. This framework is instrumental in helping organizations identify and leverage their unique strengths to achieve competitive advantage in new markets. It was particularly relevant to this initiative as it enabled the brewery to pinpoint the core competencies that could drive its success on a global scale. The process involved:

  • Conducting a comprehensive audit of the brewery's existing competencies, including its innovative brewing techniques, brand loyalty, and artisanal product quality.
  • Engaging with stakeholders across various departments to understand the competencies that they believed were central to the brewery's identity and success.
  • Mapping these competencies against potential opportunities in the global craft beer market to identify where the brewery could differentiate itself.

The Value Discipline Model, proposed by Treacy and Wiersema, was also applied to align the new vision statement with a clear value proposition. This model emphasizes the importance of focusing on one of three disciplines: operational excellence, product leadership, or customer intimacy. For the brewery, the decision was made to focus on product leadership, highlighting its commitment to innovation and quality in the craft beer industry. The implementation steps included:

  • Reviewing customer feedback and market trends to confirm that product leadership in craft beer innovation resonates with the target market's expectations.
  • Aligning internal processes, from product development to marketing, to ensure they supported the strategic focus on product leadership.
  • Updating the vision statement to reflect this focus, and communicating the revised vision across all levels of the organization to ensure alignment and commitment.

As a result of implementing these frameworks, the brewery successfully redefined its vision statement to encapsulate its global ambitions and core competency in producing innovative craft beer. This strategic clarity has empowered the organization to pursue international market opportunities with a focused approach, leveraging its strengths in product innovation to differentiate itself in new markets.

Learn more about Operational Excellence Competitive Advantage Core Competencies

Market Entry Strategy for Asia-Pacific Region

For the strategic initiative to enter the Asia-Pacific market, the organization utilized the Market Entry Strategy Framework. This framework is crucial for evaluating the potential of new markets and deciding on the most effective mode of entry. It was especially useful in this context as it provided a structured approach to analyze the diverse and rapidly evolving Asia-Pacific craft beer market. The organization undertook the following steps:

  • Conducting in-depth market analysis to understand the size, growth potential, and consumer preferences in targeted Asia-Pacific markets.
  • Evaluating different entry modes, such as exporting, licensing, franchising, and joint ventures, to determine the most suitable approach for each market.
  • Developing market-specific strategies that considered local consumer behavior, regulatory environments, and competitive landscapes.

Additionally, the Competitive Strategy Framework by Michael Porter was employed to carve out a competitive position in the new market. Understanding the competitive forces and crafting a strategy that leverages the brewery's unique strengths were critical steps. The process included:

  • Identifying the brewery's competitive advantage in product differentiation and quality.
  • Analyzing competitors in the Asia-Pacific craft beer market to understand their strategies and weaknesses.
  • Formulating a competitive strategy that emphasized the brewery's strengths in innovation and quality, coupled with localized marketing strategies.

The implementation of these frameworks enabled the brewery to successfully enter the Asia-Pacific region with a clear understanding of its competitive advantage and a tailored market entry strategy. This strategic initiative has not only expanded the brewery's global footprint but also positioned it strongly against local and international competitors in the new markets.

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Digital Transformation and Direct-to-Consumer Sales

In advancing the digital transformation and direct-to-consumer sales initiative, the brewery applied the Digital Transformation Framework. This framework provides a comprehensive approach to integrating digital technology into all areas of a business, fundamentally changing how the organization operates and delivers value to customers. It proved invaluable for identifying areas within the brewery's operations that could benefit most from digital innovation. The steps taken included:

  • Assessing the current state of digital maturity across the organization to identify gaps and opportunities for enhancement.
  • Developing a digital transformation roadmap that prioritized initiatives based on their potential impact on direct-to-consumer sales and customer engagement.
  • Implementing digital technologies to streamline operations, enhance the customer experience, and enable new sales channels.

The Customer Journey Mapping technique was also utilized to gain insights into the customer's experience with the brewery's products and identify touchpoints for digital engagement. This approach involved:

  • Mapping out the end-to-end customer journey, from awareness to purchase and beyond, to identify key interactions with the brand.
  • Identifying opportunities to enhance the customer experience at each touchpoint through digital technologies.
  • Designing and implementing digital solutions to improve engagement, such as personalized marketing, e-commerce platforms, and customer feedback mechanisms.

The successful application of the Digital Transformation Framework and Customer Journey Mapping has significantly advanced the brewery's digital capabilities, resulting in an enhanced direct-to-consumer sales channel. This initiative has not only improved operational efficiency and customer satisfaction but also opened up new revenue streams, positioning the brewery for sustained growth in the digital age.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Articulated a new vision statement, leading to a focused global expansion strategy and increased stakeholder alignment.
  • Entered two high-growth markets in the Asia-Pacific region, contributing to a 15% increase in international sales within the first year.
  • Launched a direct-to-consumer e-commerce platform, resulting in a 25% increase in online sales and improved customer engagement.
  • Enhanced operational efficiency through digital transformation, leading to a 20% reduction in supply chain costs.
  • Expanded product lineup to include low-alcohol and non-alcoholic options, capturing a 10% market share in this segment within target markets.

The strategic initiatives undertaken by the craft brewery have yielded significant results, marking a successful pivot towards global expansion and digital transformation. The entry into the Asia-Pacific market and the launch of a direct-to-consumer sales channel have been particularly effective, driving revenue growth and enhancing customer engagement. The focus on operational efficiency and product diversification has also positioned the brewery well for future growth. However, the results were not without challenges. The 10% market share in the low-alcohol and non-alcoholic segment, while promising, fell short of expectations in the face of intense competition and consumer preferences. This underscores the need for a more aggressive marketing strategy and perhaps a deeper understanding of local consumer behavior. Additionally, the 20% reduction in supply chain costs, while significant, suggests there may still be untapped efficiencies or technological advancements that could further streamline operations.

Based on the analysis, the recommended next steps should include a deeper market penetration strategy for the Asia-Pacific region, focusing on consumer insights and localized marketing efforts to increase market share in the low-alcohol and non-alcoholic segment. Additionally, exploring further digital innovations to enhance the direct-to-consumer platform could capitalize on the growing trend of online sales. Finally, a continuous review of the supply chain and operational processes should be conducted to identify further efficiencies, possibly through the adoption of emerging technologies or alternative sourcing strategies. These steps will ensure sustained growth and competitiveness in the global craft beer market.

Source: Global Expansion Strategy for Craft Brewery in the Beverage Industry, Flevy Management Insights, 2024

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