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Case 17 - Corona Beer: From a Local Mexican Player Essay

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Corona Beer: From a Local Mexican Player to a Global Brand
Case 13
Strategic Corporate Management

28 May 2011

Case 13

Executive Summary

Corona – Mexican Leader in Beer Market and Global Player From a traditional Mexican beer brewer to a global player Globalisation Strategy Ranked in the global top-ten of beer producers Distribution Channels Close and elaborate partnership with distributors Marketing Strategy
“Fun in the sun” – successful marketing image Campaigns focus on the product and the image

Challenge: Consolidation in Industry Main competitors grow through inorganic growth (e. g. mergers)
28 May 2011 1

Question 1


What are the dominant business and economic characteristics of the global beer industry? Business Characteristics

Threats Opportunities

Competitive environment Domestic legal differences Few large brewery companies but many labels

Merger of Anheuser-Busch and InBev

Economies of scale

Economic Characteristics

Shift from local to global markets Opportunities and threats of globalising Strong local markets:
Germany UK

Legal restrictions

Asian market potential

Changing demand (e. g. variety of product range to mixed-beers)

28 May 2011


Question 2

Key Success Factors

What do you see as the key success factors for firms in the global beer industry? Think global, act local
Understanding new markets but using economies of scale Maintain local brands Understand local cultures (e. g. France prefers wine but Germany prefers beer)

React appropriately towards changing demand Assure appropriate infrastructure and access to raw material exploring new markets Finally to diversify towards ‘foreign’ segments (e. g. Grupo Modelo’s joint venture with Nestlé producing water)
28 May 2011 3

Question 3

Strategic Group Map

What does a strategic group map of the global beer industry look like? How strongly is Grupo Modelo positioned in the...

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