Product details

Cobra Beer has outgrown its niche market. In order for it to meet its publicly stated growth objectives it must diversify. Conscious of this imperative, Cobra has sought to diversify in four areas: through product differentiation, geographic expansion, and by diversifying distribution and manufacturing. It is pursuing these four initiatives simultaneously. Given limited resources, and the fact that these initiatives require very distinct strategic approaches, Cobra's wisdom is called into question. At the very least, the beer company will have to reconcile the call for specialisation and autonomy with the equally pressing need for the efficiency provided by co-ordination and control. Moreover, it needs to carefully reconsider its brand strategy. Whereas the Cobra brand is, ironically, used by its IT services subsidiary, the company did not leverage its brand name in arguably more obvious extensions.