Beer Industy Excellence
Posted on Thursday November 20th 2008 in business
One industry that demonstrates horizontal differentiation is the beer industry. In this industry, differentiation exists both in both the variety of products offered and the number of firms offering products. Anheuser-busch, one of the biggest firms in the industry, offers not only a wide range of beers, but also has its hands in the energy drink industry and the liquor industry. It offers many different brands of beers such as Budweiser, Michelob, Busch, Natural Ice, Becks, Rolling Rock, and many others. Each
one of these brands has very similar characteristics, yet is diverse enough to still draw in different consumers. With the exception of many microbreweries which are a lot of times only found in stores close to that particular brewery itself, the travel/preference cost to consumers is extremely low. Consumers can purchase very comparable beer products at most any gas station, grocery store, convenient store, and many restaurants. They do not have to travel very far to get the beer that they want.
one of these brands has very similar characteristics, yet is diverse enough to still draw in different consumers. With the exception of many microbreweries which are a lot of times only found in stores close to that particular brewery itself, the travel/preference cost to consumers is extremely low. Consumers can purchase very comparable beer products at most any gas station, grocery store, convenient store, and many restaurants. They do not have to travel very far to get the beer that they want.
