Founded in the UK in 2007, Brew Dog produces a variety of craft beers and has a reputation for provocative marketing. Brew Dog has grown rapidly and in 2017 had 1,500 workers worldwide and a $12 million profit. Brew Dog promotes itself by opening Brew Dog bars located throughout the UK and also now in the U.S. Also, it has an “Equity for Punks” program, a crowdfunding effort that allows Brew Dog fans to become investors in the company; 85,000 new investors have joined the company through this program. Realizing that the craft beer business is getting more and more crowded, Brew Dog tries to distinguish itself with edgy advertising. The craft beer industry has grown rapidly in recent decades. There are a number of small breweries, and many have successfully established themselves with a unique brand that has earned a devoted following for that brewery. However, the growth in industry sales has begun to slow in the recent few years, with a very modest increase in industry sales of only 1.5% in 2017. Thinking ahead, Brew Dog has decided to further distinguish itself by starting the “Brew Dog Network,” a streaming service for smartphones priced at $4.99 per month. The Network provides hundreds of hours of videos designed to appeal to Brew Dog’s customers.

Required
1. What type of strategy does Brew Dog appear to be using?

a. Cost leadership based on rapid expansion

b. Differentiation based on superior product

c. Diversification based on rapid growth

d. Differentiation based on customer satisfaction

e. Product leadership based on innovation

2. Explain briefly your choice for strategy in part 1.

3. Do you think your answer in part 1 is the best strategy for Brew Dog? What would be a better strategy, if any? Explain briefly.