AB InBev: A Sustainable Competitive Advantage

Satisfactory Essays
Anhueser-Busch/InBev: A Sustainable Competitive Advantage!

Operations Management is a key component in the success of any firm. The textbook

outlines ten critical areas to focus on for Operational Managers--many firms have developed these one or two of these areas into a competitive advantage. One firm, Anhueser-Busch/InBev has successfully incorporated all ten areas of focus and developed them into a legacy of quality and a sustainable competitive advantage. This focus on Operations Managemnt has lead to Ab/
InBev 's reputation for quality, and their continued dominance as a global brewery.!
Design of Goods!

The design of goods/services defines a firm, and sets them up for success (or failure) in

the market. In order
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Louis, Missouri, where

they were originally established in the early 1800s. Although the merger between AnheuserBusch and InBev in 2008 could have easily meant that headquarters would be relocated, moving production elsewhere would have been incredibly costly. Because of the company’s long-standing residence in the Midwest, many suppliers are also located in the Midwest.
Relocating the brewery would have not only increased shipping/handling costs of the various inputs, but also the campus that AB/InBev currently occupies is now owned outright by the company—attempting to build a new production facility would have been a significant outlay of capital.! !

The brewery in St. Louis is certainly a well-known landmark within the city, but it is not

the only brewery that AB/InBev owns and operates. Because the demand for AB/InBev products is so widespread, the brewery operates 12 different brewing and bottling plants throughout the United States. These locations help ensure the freshness and overall quality of the product delivered to various markets nationwide, as well as help reduce the costs of moving product from manufacturer to distributer. !

Layout Strategy!

Because AB/InBev offers almost 200 unique products, layout strategy is incredibly

important in keeping the company competitive—efficient and effective use of space ensures that things continue to run smoothly.!


At the brewery in St.
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