May 12, 2012
Bus 599 Strategic Management
As one of the world’s top ten beer producers, Modelo has been a successful force in its market through strategic advertising and decision making. Trends within the global beer markets will enlighten help us understand how Modelo was able to move forward successfully through international expansion. In addition, the company’s challenges will be discussed as well as possible future movements and diversity opportunities.
Trends in global beer markets
Currently the world’s top 10 beer companies are Bud Light, Budweiser, Skoi, Snow, Corona, Braham Chopp, Heineken, Miller Lite, Coors Light, and Asahi Super Dry. Beer has been successful in global markets as consumers enjoy the tastes of different brews from different countries. “Some countries have distinct cultural tastes, where beer is not the alcoholic drink of preference. In countries such as Italy and France, wine outperforms beer for consumption per capital whereas in countries like Germany and Ireland, the reverse is true” (5). Several factors will affect the trends of beer consumption in the global market. Imported beer has been a significant trend in the market and companies maintain high sales as long as strategic marketing and relationships with suppliers. In the 1990s, the market especially became prominent as certain companies started to head others and expanded into new countries and markets. Since then, companies have been competing to take the lead in the market.
Modelo’s International Expansion
Modelo’s first brewery was built in Mexico and strategically focused on that market in its early years. Through leadership guidance of Pablo Diez, innovative ideas such as the production of clear bottles led the company to becoming Mexico’s largest beer producer (4). Soon after that, the company faced several issues such as government interference. A prohibition policy came into effect which...