Competitive Intelligence Research - Essay Example

In order to arrive t the recommended business partner, were examined such factors: 1 . Comparing conditions with a foreign market. 2. The political agreements with the potential partner country. 3. The similarity in a mission and strategy with a potential partner. 4. The prices and kinds of products. 5. What are the risk with this partnership and what access can being provided to other potential partners. Goose Island Beer Company was chosen to providing this research.

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Goose Island Beer Company is a brewery located in Chicago, Illinois, that began as a single brewpub known as Colloquy, which was opened in May 1988 y John Hall in Lincoln Park, Chicago, Illinois. Goose Island also offers Root Beer and various sodas including Orange Cream and Grape soda. The beers are distributed across the United States and the United Kingdom (BIB, 2014). Comparing Conditions with a Foreign Market Both companies, Goose Island Beer Company and Steam Whistle Breweries, are located in the neighbor countries: the USA and Canada respectively. Breading business to the foreign market demand to adapt your product to the foreign market demand, including cultural influences (such as religion and radiations), language laws, buyer preferences, engineering standards or buying habits. The Canadian company could minimize influence of the all this factors by spreading business in the USA because this country is the most similar one with Canada. Goose Island Company as the American company has the priority by this criteria.

The Political Agreements with the Country of our Potential Partner Laws and regulations in international trade can be complex, and they may have an impact on various aspects of your export operations. October 4th marks an important ate in Canada-U. S. Trade relations. In 1987, both countries agreed to the Canada- United States Free Trade Agreement (SCUFFS). Negotiations toward a free trade agreement with the U. S. Began in 1986.

The two nations agreed to a historic agreement that placed Canada and the United States at the forefront of trade liberalizing (FAT, 2013). Key elements of the agreement included the elimination of tariffs, the reduction of many non-tariff barriers, and it was among the first trade agreements to address trade in services. It also included a dispute talented mechanism for the fair and expeditious resolution of trade disputes. Hence, Goose Island Beer Company might be a good partner because of absence some problems with enter market.

The Similarity in a Mission and Strategy with a Potential Partner Firstly, both company are young enough: Goose Island Company was founded in 1988 and Steam Whistle was founded in 1998. The mission of Steam Whistle is to become Canada’s Most Respected Beer. Its illustrate somehow the same stage of developing this companies, the way to understand business by them. Goose Island Company was mounded by John Hall. Similar to the team founders of Steam Whistle, the idea to create especial kind of beer was appeared after traveling across Europe by John Hall.

The main idea was about; “what could be better than making a product that I was passionate about, and nearly every American adult liked? ” Noon Hall, 2014) Goose Island Beer Co. Is now one of the largest craft breweries in the Midwest. The company distributes its beers to all 50 states and the United Kingdom. In 2013 year they spread selling to Ontario, Canada in the form of Sofia (6. 5«ABA$9. 5) and MaMantilla7«V;ABA. 95) (ReheReel2013). Accordingly, steam Whistle BrewBreweries use this situation to make Goose Island a business partner.

The Prices and Kinds of Products Entering to the foreign market company has to adapt your product, price and promotional campaigns to reflect conditions in the foreign market, Your pricing strategy needs to take into account market demand, competition and costs such as tariffs, custom fees, currency fluctuations, value-added taxes (VAT), shipping and insurance. In this situation the USA is the most comfortable country for the young Canadian company like Steam Whistle BrewBreweries>

Steam Whistle BrewBreweriesl only one kind of product: a premium pilspipelineser packaged in distinctive green glass bottles and a non-twist cap. They use five ways of packaging: bottles, cans (355 ml and 500 ml), draught and gift package. To compare with Goose Island Brewery, the company provide about 1 5 different kinds of beer with packaging line 500 bottles in hour. Also, the company has 143000 square foot warehouse for stock their beer. In my opinion, Steam Whistle BrewBreweries use this assets of the potential partner for he future strategy. ermeReentersat are the risk with this partnership and what access can being provided to other potential partners EverOvertimeng partner business the company faces to some risks and some and benefits. Hence, I build the matrix to providing the simple analysis of partnership between Steam Whistle BrewBreweries Goose Island Brewery (Figure 1). Figure 1. SWOTSOOTlysis of partnership EStrStrengthsknesses 1 . ExteExtendinginess to the USA, Chicago and into another American States and countries 2. The absence of the necessity to seek warehouse in the USA . lt cLat be difficult to compare short difference of beer with a potential partner 2.

The company has limited opportunities to be an equal business partner (no stores, no warehouse) 1 . As a stronger Company, Goose Island can help to sharply increase the sales of the Steam Whistle 2. To start to be popular among AmarAmericantumers 1 . The main threat is risk to be absorbed by business partner 2. Steam Whistle might loose unique within this partnership in a future Opportunities Threats The results of SWOTSOOTlysis illustrate that there are advantages as well as isadsedateness Steam Whistle BrewBrewerieshin partnership with Goose Island Company.