SWOT Analysis
Strength
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Quality Uniqueness- flavorful and fresher tasting because craft brewery is
distinguished from standard industrial beers by their flavor and brewing
styles
High profit margin
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Weakness
 New company, it is a new startup so it does not have a link with
distributors or suppliers. It may be difficult to convince and afford
 Higher price than mass-production beer
 Its beer is not nationally distributed. Craft beer targets only local area.
 Quality of beers depends on the freshness. It cannot keep for long time.
Opportunity
 Consumer demand in craft beer increased. Demand shifts from massproduction beer consumption to craft beer consumption. It is called “Test
revolution”. Because they want full-flavored beers.
 Sales volume increased
 Only one competitor (Northampton Brewery) with the different target
market.
 Beer industry- high growth, low failure.
 Low market concentration
 Barriers to entry. Because product is an experience, rather than a search
good. It is difficult to be taken over by industrial breweries because they
cannot focus on small scale of production, inability to duplicate the craftbrewed flavor.
Threat
 Type of business- capital needed for start up is not substantial, beermaking know how is widely dispersed so entering by other
microbreweries or large microbreweries or imitators in the same area is
easy
 Company may be taken over by mass-production beer manufacturers (they
have high potential). It creates an existence of mainstream microbrand
 High substitution rates, it competes with all kind of beverages. Direct
competitors are imports. Indirect competitors are alcoholic drinks such as
wines and non-alcoholic drinks such as juices, drinking water.