Entry of Mandarin Oriental the Russia Hotel Market Essay

Entry of Mandarin Oriental the Russia Hotel Market - Essay Example Synopsis This report begins by looking at the international hotel market with a historical and expansion outlook. It introduces the hotel in focus, i.e. the Mandarin Oriental hotels and looks at the various successes it has been through in its past and present operations. The Russian market is also further explored for a better position to relay the proposed entry of the hotel into the country’s market. The report then embarks on an analysis of the hotel by use of the eclectic theory and further uses the competitive matrix to propose a way forward to the hotel chain. Table of Contents The International Hotel Market†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.5 The Eclectic Theory†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...6 Ownership Advantages†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦7 Locational Advantage†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 Internalization†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.10 Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦11 Conclusion†¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦12 Recommendation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.13 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦14 Appendix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 16 The International Hotel Market Hotels have historically f lourished because they provide the very basic necessities that are needed by people, i.e. food and shelter. With the dawn of the civilized nations, there has been an increased need for travel and leisure, and hence the requirement for somewhere to get some rest or simply accommodated (Lockyer, 2007). This need coupled with the effects of globalization and the information and technology revolution has further enhanced the rise of international hotel chains that are standardized to provide the environment of ‘a home away from home’ (Dunning and Gray, 2003). The international hotel industry has been categorized in the group of the service industry because it provides an intangible service of accommodation, even though sometimes the service may mean provision of material commodities. This paper looks at a popular international hotel chain, Mandarin Oriental, and examines how it can easily venture into the Russian hotel market. Mandarin Oriental is a popular hotel group foun ded in 1963 from an initial ownership of Mandarin in the Chinese city of Hong Kong.  Currently, it has a total of 11,000 bedrooms and additionally has restaurants, drinks spaces, luxury leisure clubs and ample onsite parking spaces. The hotel chain has a total of 44 hotels in different locations around the world that sum up to massive 28-country coverage. It offers a wide range of services to its clients, which are of a high standard. All these massive investments have been achieved all the years through rapid acquisition strategies of purchasing world class hotel enterprises (Mandarin Orientals, 2012). Against the backdrop of this

Restore or Demolish Research Paper Example | Topics and Well Written Essays - 2500 words

Restore or Demolish - Research Paper Example page 6 Money matters †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. page 6 Restoration is not worth the cost, time and effort †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ page 8 Conclusion †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ page 9 References †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ page 10 Abstract There is much clamor between those who restore and preserve old homes and those who would rather reconstruct the home from scratch. Pro-restoration groups claim that historical homes are irreplaceable. The other side argues that restoration is painstaking and costly. The financial help from private and non-private organizations can alleviate expenses but the assistance may sometimes come with conditions that interfere with the homeowner’s plans. Historical houses can also be a vital part of the community that restoration may not only affect the property’s owner but also the entire neighborhood. As with all restoration projects money will be an issue. However, with careful planning and decision-making, refurbishing an old home can bring the owner a lot of advantages. First, old homes are built with wood, glass and other materials that have lasted through the years. Secondly, in the event that the restored home is sold, it will be worth more than its original market value. Lastly, the historical home is a unique property that not everyone can have. Introduction A dictionary defines a house as a â€Å"(n) a building that serves as living quarters for one or a few families.† (house, n. d.) A house is more than a mass of wood, concrete and glass. From conceptualizing to putting in that last door or brick, a lot of thought is put into creating this type of personal space. Houses are made to stand the test of time and weather. Architects, construction engineers and carpenters select only the best materials for each and every home they build. Aside from the aesthetic feature, these professionals also design homes to be sturdy. At times, the house is so resilient that it even lasts longer than the family it was built for. A person’s house will always be a part of the person’s family. The structure is witness to almost every event, if not all, that has happened inside its walls. Generation after generation passes through its doors. When the time comes to leave one’s home, there is an obvious hesitation and forlornness because of the many memories the building holds. This dilemma is one of several why people decide to repair old homes. Rather than de stroy it, families opt to salvage whatever they can of the antique structure in an effort to maintain the house’s character. The appreciation for old homes does not end with just the families. States and organizations have also been supportive of this venture. Local governments have introduced measures in order to encourage the refurbishing of old homes especially those they consider historic. Private corporations have also come up with financing for the homeowners and recognition for architects who help create and remodel these structures. There are magazines and websites devoted to giving pointers and resources to people who would rather restore than demolish and build. Sometimes, the restoration of old homes is not only a choice by the owner but also of the community. Background According to Maslow’s Hierarchy of Needs Theory (Koontz and Weihrich, 2008) shelter is one of

IMG Article Example | Topics and Well Written Essays - 500 words - 1

IMG - Article Example Signing deals with various celebrity athletes like Tiger woods among others and significant expansion in terms of the firm’s structure and function explains its economy of scale. It is worth to note that IMG is currently facing challenges of its already large scale of operation in regard to its emerging competitors. The company is evidently out of control as it grapples with management challenges. This can be seen from mass exit of employees, signed athletes and the rising criticism on the issue of conflict of interest. The facts presented in this case study shows that IMG grew exponentially due to its initial competitive advantage but later ran out of managerial techniques as far as sustainable and maintenance of value creation activities are concerned (Hitt,et al. 67-9). The emergence of market dynamics with increasing competing firms that have embraced technology and strategic pricing policy is putting the IMG under significant threat of failure hence the relevance of the company â€Å"out of control†. In the contemporary turbulent market, it is advisable that McCormack or his successors need to boost the size and diversity of IMG’s portfolio of businesses. This is in line with the changing market conditions in which diversification would help it cushion losses from one aspect of their portfolio. For it to manage competitive strength in the market, it only needs to reorganize its management techniques that should be coupled with a shift towards global standard in order to survive among the several new entrants in the industry. One approach of strategic management that would revive IMG is to blend outsourcing of skilled personnel with its own employees. This would provide hybrid technique that would serve to help it deliver quality services to its diverse clients. This implies that IMG would do a better job for its clients if it contracted with

The Vision Statement Essay Example | Topics and Well Written Essays - 750 words

The Vision Statement - Essay Example In other words, the vision statement describes the strategic objectives of an organization that are to be accomplished in the long run. â€Å"Your vision Statement is a succinct declaration of your ideal future, usually three, five or ten years out† (Woolf, 2012). On the other hand, the mission statement describes the short-term goals of the organization. Another perspective about the difference between the vision statement and the mission statement of an organization is that the vision statement talks about the personal growth of business as wanted by the owners of an organization in the long run whereas the mission statement talks about the benefits the organization will provide the society with as it functions by delivering its goods or services to the consumers. The vision statement gives a direction to the organization. Both the vision statement and the mission statement consist of goals, but the factor that distinguishes between the two kinds of statement is the entity t hat will benefit from the achievement of those goals. Mobilink is a telecommunication company in Pakistan. The vision statement of Mobilink is, â€Å"To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations† (Mobilink, 2012). ... The importance of a vision statement for an organization cannot be overemphasized. Having an appropriate vision can help an organization because the vision statement gives it direction. â€Å"Without it, it’s like setting sail in a yacht with neither a sail nor an anchor – the sail to get you there with the help of the wind, and the anchor to moor you both along the way and when you get ‘there.’† (Woolf, 2012). Once the leader of an organization knows where he/she wants to take the organization in the future, he/she decides the course of action accordingly. There are various milestones in the identified course of action leading to the attainment of the ultimate objective. For example, Mobilink’s vision statement suggests that the leader of this company needs to adopt such strategies that Mobilink is not just as good as its contemporaries in the market, but is good enough to lead them in Pakistan. Vision statement does encourage organizational change. Change is an inherent process of any organization that wants to progress. In order to be successful, the micro- and macro-culture of an organization needs to be modified so as to adapt to the changing environment and advancing technology. In case of Mobilink, if Mobilink wants to be the leading telecommunication services provider, it is imperative that it keeps advancing constantly to keep performing better than other telecommunication services providing companies in Pakistan. This requires adoption of new technology, which in turn requires constant change. Change needs to be introduced at every level. Not only the new technology is to be purchased, but also the workforce has to be provided with education and training in order to inculcate the necessary skills in them required to use the

International law Research Paper Example | Topics and Well Written Essays - 2000 words

International law - Research Paper Example However, the term genocide was not formed until 1944. Literature has evidenced that genocide is any act committed with the intention to destroy completely or in partiality, a racial, an ethnic, a religious, or a national group. The recorded genocides include 1904 in Namibia, 1915 in Armenia, 1932 in Ukraine, the 1944 Holocaust, 1975 in Cambodia, 1982 in Guatemala, 1994 Rwandese genocide, and the 1995 Bosnian genocide. This resulted in the signing of an international treaty to form the International Criminal Court that has the mandate to prosecute crimes of genocide. Under the international law, genocide is considered as a crime. In this perspective, the paper will discuss the genocide with reference to international law. The effort to define genocide dates back to 18th century. According to Scott, various conventions tried to give formal statement of war crimes as well as laws of war. The Geneva Conventions were a series of international treaties concluded in Geneva between 1864 and 1949 with an aim of restructuring the impact of war on civilians, prisoners, and soldiers. In 1864, the international negotiations resulted in the Convention for the Amelioration of the Wounded in time of War. It stipulated that: immunity from capture as well as destruction of all establishments from the treatment of wounded soldiers, unbiased treatment and reception of all combatants, and protection of civilians giving aid to the wounded, in addition to recognizing the Red Cross symbol as a means establishing people and equipment covered by the agreement. In 1864 the convention was ratified by all major European powers. It was amended and extended by the second Geneva Convention in 1906. The provisions were applied to t he maritime conflict via the Hague conventions of 1899 to 1907. They are the first multilateral treaties to address warfare conducts based on the Lieber Code. The codified law stipulated regulations, for example, in protection of civilians and

Response Essay Example | Topics and Well Written Essays - 500 words - 11

Response - Essay Example A few pages into it and I realized how engrossing it is for me. I could totally relate myself to the writer’s description about the non serious and lax attitude the students hold towards college education. Their fears and trepidations about the whole experience, their eagerness to skip college on the whole and pursue their careers immediately after graduation so that they can instill in themselves a sense of independence. His approach to my attitude was so evident, it felt as if he is actually pointing at me and talking to me. I am already half way through my book. I feel I have a lot to learn from the writer’s example. He reflects upon the methods of teaching the college adapts and the kind of learning process the students go through. College education not only imparts higher education but it gives the students the ideal opportunity to prepare themselves for the lifelong career they are planning to pursue. For me, I feel college education will not only give me the facility and time to imbue in myself the professionalism and confidence required ahead but to explore my career options as well. Today I finished the book, going tentatively through its last pages, reflecting on my college experience on the whole and how can I make a difference that will allow me to make the most of it. I review my subjects again, this time with much greater foresight and interest. For the first time, I bothered to attend my career counseling appointment. I discussed in detail with the counselor, of my ambitions and aspiration and if I am taking the best measures to ensure its achievements. I decided that I will take up an internship at my college so that I can further build up on my resume. In fact, I left my book at the career counselor’s desk deliberately so that he can recommend it to other students going through the same transformation as me.

Boston Beer Company Essay Example for Free

Boston Beer Company Essay 1.Evaluate the attractiveness of the craft beer segment relative to the market space occupied by the traditional Big Three. (tip: use the Five Forces framework). a.High Threat of new competition: over 600 of specialty beer companies were founded over the past five years, approximately 40% growth each years. In addition, the existence of contract brewing companies lead to low entry cost. b.High substitution: The attractiveness of craft brewing industry are majorly based on unique styles and flavors of beer. there are many different brands and styles of beer so the actual threat of substitutes is high. c.The intensity of competitive rivalry is also high: while there is a major growth of new entry, the market size shows little growth. This creates tremendous competitive pressures among the industry. d.Bargaining power of buyers: Switching cost for buyers are low, as there are many different substitution and options. companies has to consistently maintain high quality in order to retain customers. e.Bargaining power of suppliers: switching cost for suppliers are high for the traditional Big Three, as their supplies are tied to their own brewies. Craft brewing companies has the option of switch breweries in a relatively low cost, as the suppliers know they have options to supply other breweries. This allows them to charge higher prices than the big three. 2.Evaluate Boston Beers business model relative to Redhook and Petes, comparing their business models with respect to specific activities such as procurement, brewing, distribution, and marketing. BBC’s strategy of producing the highest quality of products, the company pursued four initiatives: high quality standards, contract brewing, intensive sales and marketing, and product line innovations. Unlike BBC and Pete’s, redhook relies on its own breweries. Redhook also established a strategic alliance with Anheuser-Busch whereby Redhook products were sold through the nation-wide network of 700 distributorships in exchange for a 25% equity stake in the company. \Similar to BBC, Pete’s operates on a contract brewing basis and stress heavily on marketing. In retrospect, BBC intended to remain a contract brewer exclusively, capitalizing on lower overhead and transportation costs while continuing to invest heavily in its branded products. Redhook believed that its long-term growth and profitability were best served by assembling the largest company-owned production capacity of any domestic craft brewer, guaranteeing production capacity in more than one geographic region of the United States. Redhook also made a substantial investment in distribution, gaining access to Anheuser Busch’s nation-wide network of resellers. Pete’s, on the other hand, appeared to be following a combination of these two strategies by producing its products at both company-owned and third-party breweries. 3.How realistic analysts long-term growth forecasts (25% to 40% for the craft-brewing segment)? Based on the porter five forces analysis, the craft brewing segment has many advantages over the traditional big three, which explains the 40% growth rate. However the large number of new entries companies has already created a tremendous amount of competitions among its own, which retard the long term growth in my opinion and makes the forecasts of 25% to 40% seem unrealistic. 4.What do you recommend to Boston Beer? a.While the US market size remains somewhat stable. By exporting globally, will introduce BBC to new markets and additional sales b.Forming strategic alliance will help combat the increasing competition among industries.