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, to their own brands, AB InBev owns a 50 percent share in Grupo Modelo, which is Mexico’s leading brewers that own the global Corona brand. AB InBev also owns a 27 percent share in the China brewer Tsingtao. (Workman, 2009)”
Since Anheuser-Busch InBev has a vast variety of markets throughout the world we could see different stages in the life cycle through these different markets. For example Western Europe has a Consumer resistant (declining stage of the life cycle). USA, UK France, Switzerland and Latin America have a mature market. Eastern and Central Europe have a market that consolidation considered life cycle and Africa, China, India and Indonesia have a fragmented or introductory life cycle. To be able to do the analysis we will be considering the beer industry life cycle stage as a whole, this stage according to the analyst, the life cycle stage of the beer industry and Anheuser-Busch Inbev has already entered it’s maturity stage. “In this stage product features may be enhanced in order to differentiate them from competitors, pricing is normally lower, distribution is more intensive, and promotion emphasizes brand image and product differences. (workman, 2009)”
Based on these product, market, or distinctive competency choices, what generic business-level strategy is your company pursuing?
AB InBev has a chosen a differentiated strategy offering unique or distinctive products to many kinds of consumers, where their main focus is to gain market share from highly concentrated and competitive US markets and also to focus on international increasing potential markets expanding its global market. Because brands are the foundation of AB InBev, they place major value on their relationship with consumers.
These strategic involvements can be traced back to the original establishments of both Anheuser-Busch and Inbev, before they merged. They established brand loyalty with their consumers and due to this AB InBev has chosen to focus their current and future investments on specific brands that have proven to be profitable. These specific brands have been identified as Stella Artois, Beck’s and Budweiser. “To date, the brands chosen have outperformed other InBev products and announced in the Q3 Press Release on November 6th, InBev had gained or maintained market share in eight of their ten markets” (AB InBev, 2011).
As for the differentiation strategy AB InBev we should expect products to be renovated and innovation to be a high predominance in the company (e.g. updating packaging and brand image). As a whole AB Inbev plans to keep the original strategies that Anheuser Busch and Inbev had proven to be effective (differentiation strategy).
2. Discuss how your company has attempted to develop a competitive strategy to protect its business-level strategy. For example, if your company is operating in an embryonic industry, discuss the ways it has attempted to increase its competitive advantage over time. If it operates in a mature industry,...
Please join StudyMode to read the full document