International Business Strategy for Lagunitas Brewing Companys - Case Study Example

A better understanding of businesses as a whole and proper planning can lead to the success of a business (Safko & Brake, 2009). To begin our analysis of this case study, we will break it down into sections for easy comprehension and validation. This analysis will further help us pinpoint the company’s strategic issues needed to be addressed. We will start off with External Analysis coupled with Market-Based View then move onto the other sections. The external environment entails factors that cannot be influenced by the business such as Political factors, Economic factors, Social factors, Technological factors, Environmental factors, and Legal Aspects, otherwise known by the acronym PESTEL.

In other words, to accurately depict this external analysis, the PESTEL analysis framework is used, these are factors to consider as a business (Pearce, 2015). Breweries ought to comply with the particular country's administrative requirements, for instance, national minimum wage regulations. In addition, hygiene and quality regulations often vary significantly between nations and this influences the quality of products.Lagunitas Brewing Company is subject to U.S government regulations, and it has had a challenge with its wastewater issue.

Fortunately, the city of Petaluma was willing to help to resolve the matter rather than incur fines, however, in the future, unique political challenges are bound to stir up for Lagunitas (Gilinsky et al., 2013). Despite the looming 2008 global recession, LBC’s growth was not affected by industry or economic downturns (Gilinsky et al., 2013).Average alcohol consumer spending increased and remained popular (The Economist, 2010) most probably due to convenience and other psychological issues, and furthermore, investors have since shied away from businesses on debt financing like in the past.

Lagunitas decided on using equity financing contrary to debt financing, making it more attractive to outside investors as it has low debt rates.The target market for Lagunitas is concertgoers; they build a brand around music by issuing out free beer and gas. This was the drive into providing live music at its tasting lounge, fitting into the lifestyle of music lovers in general (Gilinsky et al., 2013).