Crafting And Executing Strategy Essay

553 WordsSep 1, 20113 Pages
Assignment: #3 - Foreign Market Entry and Diversification. Bus 599 August 07, 2011 Identify and discuss the trends in the global beer markets. In the past decade, the global beer market has gone through a process of rapid change. In many emerging and developing markets, economic and societal developments and transformative improvements in the quality and appeal of beer brands have resulted in strong organic growth in the beer category. Developed markets have also undergone change as brewers have responded to constrained or declining beer consumption trends. As the global economy improves, rising incomes continue to be a significant factor in developing beer markets as the category grows at the expense of illicit, high-alcohol spirits. Beer consumption continues to rise in Africa, Latin America and Asia, driven by growth in population and incomes and improvements in beer quality and appearance. In this context, many consumers are shifting from informal and unregulated forms of alcohol to aspiration, attractively-branded and safer commercial beers. The beer category is therefore growing at the expense of subsistence alcohol. Beer consumption in developed markets continues to suffer from high unemployment, high fuel prices and constrained consumer spending. In the USA, where unemployment is particularly severe among key beer drinkers, beer volumes have fallen slightly although accompanied by consumer uptrading between industry price segments. Beer volumes continue to decrease in Western Europe as consumers switch to other beverages and reduce on-premise consumption. Discuss how Modelo's international expansion was made possible through strategic partnerships with experienced distributors in local markets. Grupo Modelo has consolidated its leadership in the national beer industry with 75 years after producing, distributing and selling beer of the highest
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