Corona Case Study

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CORONA BEER: From a Local Mexican Player to a Global Brand 1. Is competition in the global beer industry best characterized as global or multi-country? Why? Which type of international strategy is Grupo Modelo using in its international operations? How does this compare to the strategies of FEMSA and Heineken? What are the strengths and weaknesses of Grupo Modelo’s international strategy versus those of its main rivals? 2. Based on your analysis of the global beer industry and Grupo Modelo’s situation, what problems and issues does the company’s top management need to address? Which ones are top priorities? Which are low priorities? 3. How concerned should Grupo Modelo be about the potential merger between InBev and Anheuser-Busch? 4. What actions would you recommend to Carlos Fernandez to help Grupo Modelo sustain or improve its competitive position, especially its international operations, and its long-term financial performance? The characteristics of global beer industry depends on the following factors * Extremely competitive * Few large companies producing many labels * Growth rate: the industry will continuue to grow at a small rate This global beer industry continues to be extremely competitive as more big brands are entering into the market. Most large companies also have multiple private label brands to target different tastes and needs of consumers throughout the world. There are a lot of challenges that this industry is facing. One of those would be from local governments who are imposing restrictions on importing taxes and other rules that effect the sales The economy also plays an important role in the global beer industry’s profitability. For example, the exchange rates that continue to fluctuate causes the companies to find ways to reduce the operating expense without pushing to the consumers. Advertising strategy

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