Market Structure

The beer industry is widely known for been an oligopoly. However, in our approach, we will explore the possibility of analyzing microbreweries in particular from a monopolistic competition market structure perspective. The beer market oligopoly is composed by three big players: Anheuser-Busch which holds 48 % of the market share, Miller Brewing Co., with 18% and Coors Brewing Co. with 11%. Please refer to the below graph and table for information regarding the market share held by the remaining companies. (Market shares are shown based on shipments of 205.6 million cases in 2005 and 210 in 2006)

Based on the above market shares, we calculated the concentration ratio of the three big players and the Herfindahl Hirshman Index for the industry. Both measures confirm that the Beer Industry is indeed a highly concentrated one as the concentration of the big three players is almost 80% and the HHI is well above the 1,800 threshold.

Market......

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Title: Us Beer Industry Overview
Approximate Word Count: 724
Approximate Pages: 3 (250 words per double-spaced page)

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