Question: Question 1 ( 2 4 points ) . Brocks Brewery ( BB ) operates in the brewery industry, making and distributing beer. While BB is

Question 1(24 points). Brocks Brewery (BB) operates in the brewery industry, making and distributing beer. While BB is a very successful company in the United States, utilizing a cost leadership strategy, its attempts to operate outside of the United States have been disastrous. BBs approach has been to export its beer from the United States to the rest of the world. The beer brewing industry is characterized by a few equally balanced competitors, slow growth, excess capacity, low switching costs, and high fixed costs. Because the brewing industry does not provide a lot of high value jobs, trade barriers seem to be non-existent for beer. Distribution channels for beer differ from country to country. In some countries, all alcohol is sold directly to the government and the government sells to bars/restaurants/stores. In other countries, alcohol can only be purchased at state controlled liquor stores. While in other countries, beer can be sold directly to the purchaser of alcohol. US Beer differs from beer in other parts of the world. Beer connoisseurs view US manufactured beer as being bland. This is not the case in the rest of the world where the beer has much more flavor. For example, Germany likes a dark beer. Great Britain likes an ale. Which strategy should BB pursue to compete outside the borders of its home country? Explain why you choose this strategy.

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