The Un Amor Decision

Category: Beer, Microeconomics

Last Updated: 23 Mar 2023

Pages: 2 Views: 572

I have considered the whole situation your company are in and have prepared a recommendation for you based on the information of the market. There are three options in this situation. First of all, you keep distributing only beers brewed by Enhances-Busch Inbox. Second, you transfer your core item from the A-B Ellen beers to Un Amour tequila. Lastly, you distribute beers and tequila simultaneously. The first option is rather risky. As you see, the declining of the beer market is not only by the economic downturn, but also by change of consumer tastes.

So, whatever meaner you introduce to your company, it might be hard to rebound this trend. The second option may sound good because the relationship between you and A-B Company is changing gradually. Also, Missouri and some of Missouri companies are becoming hostile to A-B Ellen. However, it cannot be a good solution. That's because you can lose a stable background for your company. The competition in the tequila market has not finished yet. If you change your main item from beer to tequila or other liquor, it is possible for your company to face difficulties in the near future.

So, y recommendation is to deal with both items-beer and tequila. By this method, you can expand your item portfolio and target markets. You can distribute beers to the low-price market and tequila to the middle or high price market. You can promote each market with the other item. For example, if the customers buy expensive tequila, you can give some beers to the customers as a promotion. Also, you can advertise that your company can handle diverse items in various markets. You will have a chance to expand your customer range. By this way, you can hedge risk and boost the profit.

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