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961 Beer Launching a Lebanese Brewing Company Case Solution

Solution Id Length Case Author Case Publisher
2616 1758 Words (8 Pages) Bettina Bastian Ivey Publishing : W14317
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The case study is a story of an emerging entrepreneur, Mazen Hajjar who started a Beer company named “961 Beer” in a competitive Lebanese market. The company aimed to produce high-quality consumer-friendly Beer without additives and flavours, with the traditional method to acquire customers from the local and international markets. Though the company started in a state of war but emerged successfully within the city. the start was bumpy with limited capital, knowledge, skills, and processes, yet gained a position in the market with a good strategy to acquire customers. After the opening of the pub, the people appreciated different flavours of beers and the sales faced a hike. However, due to the economic and political unrest, the bar was losing customers, and Hajjar facing a tough situation. And now, He needs to make a strategy to drive the company in the right direction of success.

Following questions are answered in this case study solution

  1. Conduct a PEST analysis and identify key drivers that impact the industry.

  2. Conduct a five forces analysis on the competitive environment surrounding 961 Beer.

  3. Conduct a SWOT analysis on 961 Beer. Is the company well positioned to deal with threats as well as opportunities?

  4. Evaluate Hajjar's decision to start an artisanal brewing company. Is Lebanon a good market for beer?

  5. What can Hajjar do to expand the business further so as to remain competitive without compromising quality as well as the values that constitutes his 961 Beer venture?

Case Analysis for 961 Beer Launching a Lebanese Brewing Company

1. Conduct a PEST analysis and identify key drivers that impact the industry.

Political, Economic, Social, and Technological factors are to be considered.

  • Political Factors- the situation is unstable as there were wars between Israel and Lebanon. Due to the war, there were civil infrastructure damages along with civilians facing 1200 casualties. The situation forced people to stay indoors the political unrest was a barrier faced at the launching of the 961-beer company as well but the company took off in such a situation. 

  • Economic Factors – as the economy had to shut down for 34-days, the economic unrest had negatively impacted the forecasts and the launching process of the company. This ultimately affected the growth rate of the economy. Since people preferred to stay indoors, this impacted the working conditions and living conditions thus it was a question of whether customers would go buy or try the new.

  • Social Factors – after launch, Hajjar focused on developing a customer-friendly logo to acquire customers. due to the 34-day shutdown meetups, gatherings were put to a halt thus a serious issue to ponder whether to launch. But the company gained customers through word of mouth, as Hajjar would carry out gathers of friends on Sundays for tasting new flavours and the feedback was seriously taken. Moreover, due to a lack of resources, he launched by using a social network, due to his large social circle it turned out to be a success. Moreover, the strategy of selling the box at a lower price than the cost was a good one otherwise people would have switched to other brands.

  • Technological Factors- with time company adopted technological advancement, and moving from home-based production to a unit proved to be in favour of Hajjar. Moreover, his move to have a Brew Master Certification was an added advantage. At pub launching, he figured the idea of provision of beer via tap was a smart move. To expand, he ordered advanced machinery to cope with the demand. 

2. Conduct a five forces analysis on the competitive environment surrounding 961 Beer.

The forces determine the company's ability to serve customers while making a profit out of it.

The company face the “threat of new entrants” in the world of beer, as there were giants who were acquiring smaller setups. Moreover, the local market was dominated by Almaza company. Moreover, for launching, huge capital is a requirement too. Moreover, due to economic unrest and a 34-day shutdown, a challenge came up for the building of a distribution network for beer.

The substitute of products challenge was high as there were many brands in the market already available. But with customer-friendly logo and the launching statement of “change” was attractive enough to gain and retain customers. Moreover, the advertisement for making beer through the traditional method without additives and flavours was a plus point.

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