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A Case Guide of the Global Beer Industry

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A Case Guide of the Global Beer Industry
Case Study Assignment 3

|What are the dominant business and economic characteristics of the global beer industry? |
|The global beer industry is dominated by large corporations who have merged with rivals to increase their global and domestic market share. |
|For example in 2004 Interbrew and AmBev merged to form the worlds largest brewing company in terms of volume ( ).Since then Miller |
|Brewing has merged with Coors Brewing company and SAB to form one of the worlds largest breweries. |
|What do you see as the key success factors for firms in the global beer industry? |
|Quantities of scale, high-volume, and international alliances for fast and easy entry into new markets. |
|What does a strategic group map of the global beer industry look like? How strongly is Grupo Modelo positioned in the industry? How |
|favorably does it compare with its closest Mexican rival FEMSA? How favorably does Grupo Modelo 's position compare to that of Heineken? |
|A strategic group map of the global beer industry would contain Anheuser-Busch, InBev, SABMiller, Heineken and Modelo. It would contrast |
|sales volume versus distribution strategy. |
|Grupo Modelo is positioned strongly in this industry because of it 's large share of the US Market, however, it 's vulnerable to the larger, |
|more powerful companies and the result of their mergers. Grupo Modelo is much stronger than it 's closest Mexican rival FEMSA. FEMSA has |
|utilized their distribution channels to gain a significant share of the domestic market, but they have been unable to rival Modelo 's success|
|overseas. FEMSA has a competitive advantage in Mexico, but overall Grupo Modelo remains the



Cited: | |Ashok, S. (2008). Corona Beer: From a Local Mexican Player to a Global Brand. 256 | | | |Berkowitz, B. and Blenkinsop, P. (2010, January 11) Heineken buys FEMSA beers, cements Latam alliance. Reuters. Retrieved from | |http://www.reuters.com/article/2010/01/11/us-heineken-femsa-idUSTRE60A16L20100111 | |Modelo ( 2008) Retrieved from http://www.gmodelo.mx/download_/informe_anual/informe_2008_en.pdf | |Modelo ( 2009) Retrieved from http://www.gmodelo.mx/download_/informe_anual/informe_2009_en.pdf | |Webring, O. (2010, July 12). Just-drinks. Retrieved from | |http://www.just-drinks.com/comment/comment-anheuser-busch-inbev-and-grupo-modelo-peace-at-last_id101269.aspx |

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