Module 2 - Functional, Business and Global Strategies a. The module focuses on the company’s/division’s business level strategies and global strategies. You will need to answer the following questions. Anheuser-Busch Inbev is one of the largest breweries in the world. “Currently, Anheuser-Busch InBev has a product list of more than 200 beers, including global best-sellers Budweiser, Stella Artois, Beck’s, multi-country brands like Leffe and Hoegaarden, and strong “local jewels” such as Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Cass, Klinskoye, Sibirskaya Korona, Chernigivske, and Jupiler, among others that have helped to make the company so successful. In addition, …show more content…
As a company[s main mission to be the greatest beer in the world, they have achieved competitive strategies to be able to protect their business-level strategies; Sprinkler Expansion strategy, Aggressive Marketing Strategy and Consumer Responsiveness Approach. Sprinkler Expansion Strategy As the world’s largest brewer, AB Inbev has the ability to compete in new and foreign markets as a strong threat. Due to their enormous capital and expansion-based strategy, they can enter any market as a challenger and shutdown competition to become the leading brewer in this market. As an aggregated note we can also see this in domestic or already dominated markets because due to economics of scale they can achieve differentiated products at a low cost. Aggressive Marketing Strategy AB InBev has been characterized in the US and in international markets as one of the most aggressive marketing in the world, these is due to their differentiation strategy and the sprinkler expansion strategy. AB InBev utilizes their extensive capital to capture as much as the market as they can and be able to be number one, in all markets they can. Another added value to this strategy is making all AB Inbev consumers brand loyal, this meaning that they can retain their customers. Consumer Responsiveness Approach Consumer
Anheuser-Busch “is among the global company’s largest and most technologically capable breweries” (About, n.d.). On Anheuser-busch.com, you can find a lot of information about the company and their products. The headquarters of Anheuser Busch is located at One Busch Place St. Louis, MO 63118 (About, n.d.). The most known beer families that they produce are the Budweiser and bud light Family. There are numerous brands that Anheuser-Busch produces aside from Budweiser and Bud light. Initial searching for Bud Light Company because most of my family is enthralled by this beer, and upon further researching the beer brand, it was surprising to find that it was actually owned and manufactured by another company, Anheuser-Busch, that also manufactured
These business sectors have a considerable measure of local brand loyalty, but in the event that Interbrew can figure out how to end up a market leader in these growing markets by presenting Belgian Beer Cafés in the major communities, Interbrew will then be able them to achieve their objective of being a worldwide brand. Interbrew can rebrand Stella's image in Belgium to a more modern and advanced beer. In the event that they achieve this in Belgium, they ought not have an issue in the nations where they are as of now having significant gains. Interbrew can likewise concentrate on the main 10 beer markets on the globe by focusing on key communities and promoting that premium beer status. Selling their beer higher than famous brands like Heineken is a way for them to become a successful global
Boston Beer’s strategy is primarily focused on growth through differentiation. The sources of its competitive advantage can be classified as a company that provides high quality beer with unique flavors, a market driven approach, and a very efficient contract brewing strategy.
The Boston Beer Company, Inc., founded in 1984, is a leading brewer in United States, offering wide variety of high quality full-flavored, handcraftedbeers. It is distinctive due to the time-honored recipe of brewing and authentic, consistent quality of alcoholic beverages. Samuel Adams Boston Lager is the pride of BBC, regular handcrafted beer “stands for quality, inner self-worth, authenticity, and unique New England or Yankee toughness” ( Martin Roper, Chief Operating Officer). Unfortunately, the company experienced the failure of conquering light beer segment
Molson Coors is a thriving international brewing company that has nine Signature Brew drinks and 123 Special Brew drinks that ranges from non-alcoholic to alcoholic (Molson Coors Brewing Company, 2016b). They have multiple markets around the world which contributes to the success of the company in the brewing industry. This report analyzes Molson Coors’ internal and external environments which determines their position in the brewing industry. It also discusses strategies the company uses in order to be successful in their industry. Molson Coors shares the industry with its main competitors but has its own uniqueness that makes its business stand out. Molson Coors is a successful business that presents opportunities for economic growth.
Anheuser- Busch is the largest beer distributing company in the world. This is because over the years dating back to 1852 they have been pioneers in both their product production and distribution. Over the years they have faced a lot of criticism and setbacks. Most notably during Prohibition from 1920 through the early 1930s. In 2008 they were bought by the European company InBev and currently hold 49.6% of the market share. Today through the modern era they have also been one of the most successful companies when it comes to marketing their products.
As previously noted, there are no distinctive competencies when it relates to the beer industry except for the product itself. One of the keys to any business is understanding trends and being able to monetize based on those trends. In recent years many of the largest companies in the beer industry have seen slower growth in the U.S. and Europe. In fact Molson Coors reported a 0.2% increase in sales in the U.S., 3.6% growth in Europe, but in Canada they had a drop in sales of 8.2% year-over-year in 2014. In comparison, the Molson Coors International (MCI) business saw sales grow 13.2% in 2014.
The following strategic report examines several factors in regards to Cobra Beer. Cobra Beer will be analysed via their external and internal environment. Issues and problems will be viewed in these two with the intention of recommending solutions at the end. Furthermore, three PR crises will be viewed and finally strategic analysis at the end will examine their business and corporate level strategies. Additionally, strategies will be suggested and how they can be implemented will be discussed.
Hence, I believe that Bud-InBev has added equity to the company and is well on its way in accomplishing a significant turn-around for Budweiser. Not only is the Anticipation campaign working to halt historical declines by driving reappraisal for the brand in the US, it is also making significant progress towards our dream of establishing Budweiser as the world’s first truly global beer brand. A meticulous approach to brand building and respect for strongly rooted research has been the fuel for a powerful campaign built on a universal emotion.
Anheuser Busch built industry leading positions in the most important beer profit segments in the world, through a blending of organic growth and value-boosting acquisitions. They adhere to a distinct brands strategy in which most their wealth is devoted to those brands like Bud Light, Budweiser, Peroni, Heineken, and now Miller Coors which they believe have the greatest long-term growth potential in China. Investments behind their top brands are powered by a meticulous approach to cost management, operational efficiency, and more specifically, the continuous reduction of non-consumer expenses like garbage, water and recycling, etc. They have a strong track record of industry-leading margins and cash flow generation (Anheuser Busch InBev,
The two beer giants, AB InBev, who provides beverages such as Corona, Stella Artois, and Budweiser, and SABMiller (Chew 2015), had a controversial merger approved by the European Commission after various negations (Bray 2016). The company will trade under the name Newbelco (Nurin 2016) and according to The Economist, “The combined firm would earn roughly half the industry’s profits and sell one in every three pints of beer quaffed worldwide” (2015). This seemed to be in the best interest of both companies because they will now be a superpower in the beer market. In order to ensure the merger went through, AB InBev had to agree to
Although the low-carb diets may have just been a fad, the data collected through BudNET, and other data linked sources, also allowed AB to recognize major trends as well. There has been a gradual shift in consumer tastes toward premium beers in recent years. AB has responded by forming partnerships to strengthen their premium offerings. August Busch IV, President and CEO, has often stated the company has a goal of increasing AB’s participation in the premium beer market (Beirne, 2006). In February, 2006, AB announced that it will be distributing five popular import brands, including Stella Artois and Beck’s, after completing a deal with Belgium-based InBev. In January, 2007, AB announced an alliance with Czech brewery Budejovicky Budvar NP to import Czechvar in the US (Janicek, 2007).
Beer is the largest alcohol segment nationwide, accounting for roughly 85% of all alcohol volume sold in the United States and annually generating over $91.6 billion in retail sales. The current state of the beer industry is that demand has dropped for the overall industry. Craft Beer has all the momentum and is continuing to take sales from the bigger companies in America. Even though craft beers are on the rise overall beer sales have been in a decline. This has introduced new methods of making sales in the bigger companies. Anheuser-Busch and Molson-Coors have created their own sub companies that imitate microbrew strategies. They advertise great tasting beers that use rich ingredients. This is creating greater competition among microbrews because hundreds of microbrews are being created yearly to go along with the ones that the big companies are creating themselves. The competitive market is making it difficult for microbreweries to ever turn a profit leading to several companies closing shop every year. The overall amount of craft beer has been increasing significantly, as shown by the graph below.
Acquisition, licensing and strategic alliances have all occurred as the leading brewers battle to control the market. There are global pressures for consolidation due to overcapacity within the industry, the need to contain costs and benefits of leveraging strong brands. For example, Belgian brewer Interbrew purchased parts of the old Bass Empire, Becks and Whitbread in 2001 and in 2004 announced a merger with Am Bev, the Brazilian brewery group, to create the largest brewer in the world, InBev. The second
“The foundations of Carlsberg’s core business are the beer markets of Western Europe, Eastern Europe and Asia. It is here that we have the expertise and strength needed to be a leading player.”