Corona Beer: from a Local Mexican Player to a Global Brand
STRATEGIC MANAGEMENT INDIVIDUAL ASSIGNMENT
ELZANDI OOSTHUIZEN
Case Study: Corona Beer: From a local Mexican player to a global brand
Question 1
What are the dominant business and economic characteristics of the global beer industry?
The global beer industry is a very large industry which has a great influence and effect of the country. This industry contribute to a high extent to the society by increasing tax dollars, purchases from suppliers, offset for agricultural produce, jobs, etc. The market growth rate of the beer industry is increasing which is illustrated by the following statistics of the top global beer brands (in millions of barrels - shipments) for the time period of 2005 to 2006: 2005 2006 2006 Market Share
Bud Light 39.3 41.1 3%
Budweiser 34.6 33.7 2.5%
Skol 27.9 28.6 2.1%
Snow 13.5 25.9 1.9%
Corona 24.5 25.6 1.9%
Brahma Chopp 20.6 21.6 1.6%
Heineken 20 21.4 1.3%
Miller Light 18.2 18.2 1.2%
Coors Light 16.5 16.8 1.2%
Asahi Super Dry 15 14.8 1.1%
The growth of the global top brewing companies in product produced (in millions of hl) in 2000-2005 the same trend was already visible earlier on: 2000 2005
1 Anheuser-Busch - 121 InBev – 233.5
2 Heineken – 74 Anheuser-Busch – 152
3 Ambev – 63 SABMiller – 135
4 Miller Brewing – 53 Heineken – 107
5 SAB – 43 Carlsberg – 78
6 Interbrew - 37 Scotish&Newcastle - 52
Reference: Essec Business School, Corona Beer case study (2008)
Prior to 1990 the national market consists of few major competitors, and there after the leading companies expanded abroad. By using progressive consolidation the result turned out to a small number of global players in the industry by 2004-2007. A high level of competition amongst the leading brands and a fight to gain the most market share was the reality. Another measurement which needs to be considered is the scope of competitive rivalry in order to identify the economic characteristics of any industry. For the beer industry the scope entails the global
ELZANDI OOSTHUIZEN
Case Study: Corona Beer: From a local Mexican player to a global brand
Question 1
What are the dominant business and economic characteristics of the global beer industry?
The global beer industry is a very large industry which has a great influence and effect of the country. This industry contribute to a high extent to the society by increasing tax dollars, purchases from suppliers, offset for agricultural produce, jobs, etc. The market growth rate of the beer industry is increasing which is illustrated by the following statistics of the top global beer brands (in millions of barrels - shipments) for the time period of 2005 to 2006: 2005 2006 2006 Market Share
Bud Light 39.3 41.1 3%
Budweiser 34.6 33.7 2.5%
Skol 27.9 28.6 2.1%
Snow 13.5 25.9 1.9%
Corona 24.5 25.6 1.9%
Brahma Chopp 20.6 21.6 1.6%
Heineken 20 21.4 1.3%
Miller Light 18.2 18.2 1.2%
Coors Light 16.5 16.8 1.2%
Asahi Super Dry 15 14.8 1.1%
The growth of the global top brewing companies in product produced (in millions of hl) in 2000-2005 the same trend was already visible earlier on: 2000 2005
1 Anheuser-Busch - 121 InBev – 233.5
2 Heineken – 74 Anheuser-Busch – 152
3 Ambev – 63 SABMiller – 135
4 Miller Brewing – 53 Heineken – 107
5 SAB – 43 Carlsberg – 78
6 Interbrew - 37 Scotish&Newcastle - 52
Reference: Essec Business School, Corona Beer case study (2008)
Prior to 1990 the national market consists of few major competitors, and there after the leading companies expanded abroad. By using progressive consolidation the result turned out to a small number of global players in the industry by 2004-2007. A high level of competition amongst the leading brands and a fight to gain the most market share was the reality. Another measurement which needs to be considered is the scope of competitive rivalry in order to identify the economic characteristics of any industry. For the beer industry the scope entails the global
References: BUSINESS INSIGHTS, 2009. The Top 10 Beer Companies, report summary. ESSEC BUSINESS SCHOOL, 2008. Corona Beer: From a local Mexican Player to a global brand.