Kirin Brewery

In: Business and Management

Submitted By anwarbizri
Words 654
Pages 3
Anwar Bizri Kirin Brewery Co. Ltd. (A) 14/09/2015

As Japanese beer market is an oligopoly with four major players, any competitive confrontation, or any new product entry, would make ripple effects on the market shares of the other 3 players. Although Kirin had the dominant share of the beer market, its conservative approach to its product strategy left it vulnerable to innovative strategies by the other players. This, in turn, is the opportunity that Asahi took advantage of. Asahi created a niche demand for “dry beer” wherein it had the competitive advantage of first-mover. Asahi realized a shift in the market demographics towards the youth and took this as an opportunity to revitalize the beer market and seize as much of the market share as they could in the time it took the other players to respond.
In light of Asahi’s challenge and the context of its strategy, Kirin had several alternative responses to consider. The simplest response would seem to be launching its own version of Kirin dry beer and mitigating the loss of market share to Asahi. However, as Asahi now has the advantage of “dry beer” brand recognition, an introduction of Kirin “dry beer” might lead indirectly to an increase in Asahi’s market share. Therefore, a introducing a parallel dry beer product is necessary but not sufficient as a strategy and must be supported by other responses.
Kirin could cut the price in the classic competitive battle response. It could do so because it can afford a price cute due to the recent appreciation of the yen. Kirin is the price setter in the market, and so Asahi would have to follow the price cut to maintain demand for its dry beer. Citing the yen appreciation, the price cut would not leave room for doubt in Kirin’s brand image, or the consumer to feel he had been cheated by the previous higher price.
As Kirin has been the market leader, its…...

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