Anheuser-Busch Case Presentation-1

Anheuser-Busch Case Presentation-1 - Key Success Factors...

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Anheuser-Busch and Harbin Brewery Group of China Jeff Anonick Lauren Hanrahan Chelsea Johnston
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General Environment Positive Factors: Political/Legal Global Negative Factors: Technology Economic
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Competitive Environment Threat of New Entrants - Low Bargaining Power of Suppliers – Medium Bargaining Power of Buyers – High Threat of Substitute Products - Low Intensity of Rivalry - High
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Value Chain-Harbin Recipe Development Sourcing / Processing Basic Ingredients Beer Manufacturing Bottling Marketing Distribution to supermarkets, independent food stores, and convenience stores Consumers Quality Control
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Sustainable Competitive Advantages: Quality Control Distribution Marketing Synergy: Marketing – Shared Skill Recipe Development – Shared Cost Distribution – Market Power AB is capturing value
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AB’s International Strategy Transnational Product offered never changed Innovation in China Responsive to local markets Trying to be globally ethical
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Unformatted text preview: Key Success Factors Full utilization of brewing capacity to keep manufacturing costs low Strong network of wholesale distributors to gain access to large coverage of retail outlets Low price Variety of beer Strategic Map: China’s Beer Industry Price Variety Tsingtao Beijing Yang Group CRE Tsingtao Harbin SWOT Analysis Strengths •Low Cost •Financial Strength of the Company Weaknesses •Foreign business practices Opportunities •Customers favor low cost over brand name •Large market and is continuing to grow Threats •Chinese government regulations • China’s social norms Alternatives •S1, O1: Advertise low cost of beer • S2, T2: Promote beer drinking publicly as a social norm •W1, O2: Establish foreign business practices in order to expand market •W1, T1: Work to improve government relations so more foreign businesses can operate in China...
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This note was uploaded on 04/05/2011 for the course MGT 495 taught by Professor Woudstra during the Winter '11 term at Grand Valley State.

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Anheuser-Busch Case Presentation-1 - Key Success Factors...

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