Foreign Market Entry and Diversification
Identify and discuss the trends in the global beer markets. The global beer markets have four main trends; consolidation, international expansions, mergers and acquisitions. One of the earliest trends within the beer industry would be consolidation; smaller countries with several midsized breweries would be "bought" up underneath one umbrella depending on the taste of that particular area or region. Consolidation with the beer industry broadens the area of sales and exposes brewers to more opportunities for growth of its company. For example, “the Belgian company Interbrew acquired breweries in 20 countries and expanded is sales to 110 countries” (C-252.) Expansion of any company can be a positive attribute to overall success; moreover, for the most obvious, revenue. The trend of breweries expansion might be credited to the extremely expensive initial startup cost of a brewery. In this area of the beer industry by having more than one area of cash flow assists with “maintenance and the fluctuating price of resources” (Thompson, Strickland, & Gamble, 2010, C-252.) International expansion can be a major attribute to a company’s success through seeking proficient production efficiencies. Some beer companies will produce their beer within its country than export versus having operational facilities in other countries where his beer is sold. International expansion, unjustifiably broadens, opportunity for beer distributers as well as top level executives with stimulation of a growth market. Mergers and acquisition is a very popular business venture with the beer industry because it is such a huge market because they can increases a company’s exposure in reference to quantity and brand exposure in which in turn opens a door to accumulate more earned market share of the industry (Thompson, Strickland, & Gamble, 2010.) Discuss how Modelo’s international expansion was made possible through strategic partnerships with...
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