Corona Beer Case Study

7415 Words Mar 11th, 2011 30 Pages
Case Study #3 Corona Beer: From local Mexican Player to a Global Brand

1) What are the dominant business and economic characteristics of the global beer industry?

Business Characteristics:

- Extremely competitive - Private label dominates - Few large companies producing many labels - Local government regulations

Economic Characteristics: - New markets need to be discovered - Saturation of existing markets - Foreign exchange rates

The global beer industry continues to be extremely competitive, most large companies have multiple private label brands to address different tastes and needs throughout the world. The industry continues to face large challenges from local governments who are imposing strict rules and taxes for
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4) What are the resource strengths and weaknesses of Grupo Modelo? What competencies and capabilities does it have that its chief rivals don’t have? What market opportunities does Grupo Modelo have? What threats do you see to the company’s future well being?

Grupo Modelo’s strengths are the amount of established brands it currently has. It has the ability to meet just about any market it enters with multiple flavor profiles. Grupo Modelo’s financial situation is very stable and gives it the ability to continue to grow when others are holding back. Their weakness can be stated that as it grows into new emerging markets, which lack of outside resources and partnerships, will take longer for them to understand the market. This will hurt them in the short term, but if they stay true to their strategy they will succeed in the long run.

Grupo Modelo has opportunities in the following markets. China, India, and Russia. All these countries currently do not have a group who is taking a large share of the market. All three are experiencing a large population growth, which can fuel sales. These markets are also self-regulated which makes it easier to understand the rules and regulations.

The biggest threat to Grupo Modelo is that of rival Heineken, it has decided to continue to partner with companies to position

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