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

1198 WordsMay 28, 20115 Pages
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 Industry What are the dominant business and economic characteristics of the global beer industry? Business Characteristics Business T/O-Matrix 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 Economy 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 2 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

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